Trump Cuts Tariffs on China After ‘Truly Great’ Meeting With Xi

Trump Cuts Tariffs on China After ‘Truly Great’ Meeting With Xi

President Donald Trump announced Friday that the United States will roll back a series of tariffs on Chinese imports following what he described as a “truly great” meeting with Chinese President Xi Jinping, a breakthrough that appears to have temporarily eased trade tensions between the world’s two largest economies.

Speaking from the White House after the bilateral meeting in Singapore, Trump said the two leaders reached an agreement that would see China delay restrictions on rare earth mineral exports for one year and increase purchases of American soybeans and other agricultural products.

“President Xi was strong, gracious, and smart,” Trump said. “We had a very good conversation, maybe the best we’ve had yet. This is a big win for American farmers and for fair trade.”

The deal, while limited in scope, marks one of the most significant de-escalations in the U.S.–China trade relationship since Trump returned to office earlier this year.

Tariff Rollbacks Announced

Under the new agreement, the Trump administration will cut tariffs by 50% on roughly $200 billion worth of Chinese goods, including electronics, textiles, and auto parts. The cuts are expected to take effect later this month, pending formal publication in the Federal Register.

A senior White House official said the administration would also suspend new tariffs that had been slated to take effect in November, provided that China meets its commitments on rare earth exports and agricultural imports.

“This is a confidence-building step,” the official said. “The president believes it’s time to reward progress where it’s happening, not punish for the sake of politics.”

The Chinese Commerce Ministry confirmed the broad contours of the deal in a brief statement from Beijing, saying that both sides had agreed to “a constructive reset” of trade talks and “mutual steps toward stable economic relations.”

China Offers Concessions on Rare Earths

Perhaps the most consequential concession came from Beijing’s decision to delay restrictions on rare earth mineral exports — a move that U.S. defense and technology companies had been closely watching.

Rare earth minerals, essential for electronics, renewable energy systems, and military hardware, have been one of China’s most powerful economic levers in recent years. The White House has warned that new export curbs could have threatened U.S. manufacturing and defense supply chains.

“This buys us a year to find alternatives and rebuild domestic production,” said Carter Lang, a senior fellow at the Peterson Institute for International Economics. “If this understanding holds, it could stabilize markets that have been very jittery for months.”

A Win for U.S. Farmers

The deal also includes a renewed pledge by Beijing to ramp up purchases of U.S. soybeans, corn, and pork, a move Trump hailed as a “direct victory for America’s heartland.”

U.S. farm exports to China had plummeted during earlier tariff battles, leaving producers in states like Iowa, Illinois, and Missouri struggling with surpluses and lower prices.

The American Farm Bureau Federation said it welcomed the announcement, calling it “a step in the right direction,” though it urged the administration to ensure that China follows through.

“Farmers have been patient, but they need certainty,” said Zippy Duvall, the group’s president. “Today’s announcement gives us reason to hope that trade can work for both sides again.”

Cautious Optimism Among Economists

Economists reacted cautiously to the news, noting that while the tariff rollback could boost market confidence in the short term, many of the deeper structural issues between Washington and Beijing, including intellectual property protection, industrial subsidies, and tech competition, remain unresolved.

“Neither side wants another trade war right now,” said Emily Hsiao, an Asia trade specialist at Georgetown University. “But this is more of a truce than a treaty.”

Financial markets appeared to welcome the news: the Dow Jones Industrial Average closed up 480 points Friday, while the Shanghai Composite Index rose 2.1% in early trading.

Trump: ‘Trade Wars Are Over, For Now’

In typical fashion, Trump framed the announcement as a personal triumph.

“People said we’d never fix it, that we’d never get China to move — well, we did,” he told reporters. “We’re bringing jobs back, our farmers are winning, and America is respected again.”

Still, administration officials emphasized that the United States reserves the right to reimpose tariffs if China fails to honor its commitments.

For now, however, the tone from both capitals has shifted from confrontation to cautious cooperation — at least temporarily.

“Trade wars are over — for now,” Trump said with a grin as he left the briefing room. “Let’s see if they keep their word.”