President Donald Trump emerged from his long-awaited meeting with Chinese President Xi Jinping on Thursday announcing a set of agreements aimed at easing economic and trade friction between the two global powers. The discussions — the first in-person talks between Trump and Xi in six years — touched on tariffs, critical mineral exports, and agricultural trade, though several longstanding geopolitical disputes remained unaddressed.
The talks took place as U.S.–China relations have been under renewed stress following Trump’s declaration earlier in the day that the United States would resume nuclear testing “on an equal basis” with Russia and China — a move that immediately drew global scrutiny.
Despite the tense backdrop, both governments signaled progress in several economic areas. Here are the key outcomes:
1. U.S. to Reduce Tariffs on Chinese Goods
Trump announced that the U.S. would lower tariffs on Chinese imports from 57% to 47%, a reduction he linked to a broader understanding on the opioid fentanyl, parts of which originate from Chinese supply chains.
Trump told reporters aboard Air Force One that China had agreed to take “very strong action” to curb illicit fentanyl production and trafficking — an issue that has been central to Trump’s domestic messaging.
The tariff cut takes effect immediately.
However, trade analysts cautioned that tariffs remain historically high and will continue to shape the economic relationship in the months ahead.
2. China to Delay New Rare Earth Export Controls
A major focus of the meeting concerned critical minerals and rare earth elements — materials essential for manufacturing electronics, electric vehicles, and defense systems.
China, which dominates global rare earth mining, agreed to pause new export restrictions for one year.
The temporary reprieve gives U.S. manufacturers time to seek alternative suppliers, though China did not commit to lifting existing limits. In recent months, the U.S. has sought new mineral partnerships with Australia, Japan, and Southeast Asian nations in an effort to reduce reliance on China’s supply chains.
3. Trump’s Nuclear Testing Announcement Casts a Shadow
Just before the meeting, Trump announced that he had ordered the Pentagon to resume nuclear testing, claiming the United States must match Russia and China "if others are testing."
No major world power has conducted full-scale nuclear detonation tests since the 1990s.
Trump did not clarify what form the testing would take, and U.S. defense officials did not immediately respond to requests for comment. China offered no public reaction to the announcement, and Trump said the topic was not addressed in their sit-down.
Arms control experts say any return to testing risks igniting a new global nuclear escalation.
4. China to Resume Purchasing U.S. Soybeans and Other Crops
U.S. farmers — many of whom have faced steep losses during the U.S.–China trade conflict — welcomed news that China will restart large soybean purchases.
Treasury Secretary Scott Bessent said China committed to buying:
12 million metric tons of soybeans through the end of this year
25 million metric tons annually for the next three years
China will also resume imports of sorghum and other agricultural goods.
Agriculture groups described the move as a “critical relief” for farmers who saw export orders fall to zero earlier this year amid trade friction.
5. Some Key Issues Were Left Unaddressed
Despite the agreements, several high-profile tensions did not come up, Trump said:
Taiwan — a longstanding flash point in U.S.–China relations
China’s purchase of Russian oil — a contentious issue amid the war in Ukraine
The sale of Nvidia’s new Blackwell AI chips to China
Trump said the war in Ukraine was discussed, though neither leader committed to a specific path forward.
A Step Toward Stability — But Not a Reset
The agreements announced Thursday suggest the U.S. and China were willing to avoid new economic escalation — at least temporarily. But deeper strategic friction remains, particularly on military competition, technology access, and regional influence.
The one-year pause on rare earth restrictions and renewed agricultural purchases may ease short-term economic pressure, but analysts say both countries appear committed to long-term rivalry.
As Trump put it on the flight home:
“We’re in agreement on many things. But we’re strong countries. We’re going to keep talking.”
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