Trump Scales Back Fentanyl Tariffs, Strikes One-Year Rare-Earths Deal With China

U.S. President Donald Trump announced a rollback of certain trade penalties on Chinese products after meeting with Chinese President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation summit in Busan, South Korea. Speaking to reporters aboard Air Force One late Thursday, Trump said tariffs tied specifically to fentanyl shipments would drop from 20% to 10%, lowering the overall average duty on Chinese imports from 57% to 47%.

The discussion between the two leaders lasted roughly one hour and 45 minutes at Gimhae International Airport. According to Trump, the tariff reduction was secured in exchange for what he described as a direct commitment from Xi to curb the flow of fentanyl and its chemical precursors into the United States. Fentanyl, a synthetic opioid up to 50 times stronger than heroin, has been a primary driver of overdose deaths in the United States, according to the U.S. Drug Enforcement Administration.

In addition to the tariff adjustment, the presidents reached a separate accord covering rare-earth minerals. Under the arrangement, Washington agreed not to impose sweeping new restrictions on Chinese exports of the minerals for a period of 12 months. Rare earths form a critical component of computer chips, smartphones, artificial-intelligence systems and numerous defense applications. The White House had previously threatened tariffs of up to 100% on those materials if Beijing limited shipments to U.S. buyers.

“The threat of additional duties on rare earths is off the table for at least a year,” Trump told reporters. He added that the move would offer electronics manufacturers and defense contractors temporary relief from uncertainty while broader trade talks continue. China dominates the global supply of rare-earth elements, and any disruption has the potential to ripple across multiple industries.

Thursday’s meeting was the first face-to-face encounter between the two leaders since Washington ordered a resumption of underground nuclear weapons testing earlier this month. Although Trump did not address that decision directly during his remarks, he characterized the Busan talks as “amazing,” rating them “a 12 on a scale of 1 to 10.”

The fentanyl-related tariff cut represents the first downward movement in duties since a series of escalations that began during the earlier stages of the U.S.-China trade dispute. Trump noted that the new 10% rate applies exclusively to product categories linked by U.S. customs officials to fentanyl production or shipping. All other tariff lines remain unchanged.

While the American side highlighted public-health concerns as the central reason for the concession, Chinese officials have long argued that strict controls on chemical exports are already in place. U.S. law-enforcement agencies, however, continue to report seizures of fentanyl originating from Chinese suppliers, frequently routed through Mexico before crossing the southern U.S. border.

Imagem: Internet

Market analysts will watch for evidence that Beijing’s pledge translates into a measurable decline in fentanyl availability. The agreement does not stipulate numerical targets or timelines, but Trump said U.S. and Chinese enforcement agencies would conduct joint assessments “within the coming months” to evaluate progress.

The rare-earths understanding similarly lacks detailed quotas, relying instead on a mutual commitment to maintain “stable and predictable” trading conditions. Industry groups in both countries have lobbied against export restrictions, warning that sudden shifts could disrupt supply chains for semiconductors, electric vehicles and advanced weapons systems.

Neither side announced a date for follow-up negotiations, though U.S. officials indicated that working-level talks on broader trade issues would resume in Washington before the end of the year. Trump emphasized that the tariff reductions and mineral accord could be reversed if China fails to meet its stated obligations. “We can always go back,” he said aboard Air Force One, “but right now, we’re moving forward.”

The Busan meeting concludes Trump’s two-day visit to South Korea for the APEC summit, where regional economic integration and supply-chain resilience topped the agenda. Trump departed for Washington shortly after the bilateral session.

Crédito da imagem: Evelyn Hockstein / Reuters