ABOARD AIR FORCE ONE — October 30, 2025— U.S. President Donald Trump announced on Thursday that the United States will reduce tariffs on Chinese goods related to fentanyl from 20% to 10%, following high-level discussions with Chinese President Xi Jinping in South Korea.

The move marks a significant step in U.S.-China trade and anti-narcotics cooperation, as both nations attempt to curb the global fentanyl crisis and ease lingering trade tensions.

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Xi Jinping Promises Strong Action on Fentanyl Flow

Speaking to reporters aboard Air Force One, Trump said President Xi “will work very hard to stop the flow” of fentanyl and precursor chemicals — the substances used to produce the synthetic opioid that has driven record overdose deaths across the United States.

“The tariff was reduced because I believe they are really taking strong action,” Trump stated, calling the summit “an amazing meeting” that produced “a great deal of decisions.”

The U.S. government has long accused Chinese chemical suppliers of exporting precursor compounds used to manufacture fentanyl in Mexico and the U.S., though Beijing has denied official complicity.

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Trade Concessions and Rare Earth Agreement

Trump confirmed that, as part of the talks, China has agreed to purchase ‘tremendous amounts’ of U.S. soybeans and farm products, starting immediately.

The two sides also reached a one-year agreement on rare earth exports, which Trump said would be extended beyond 2026.

“They’re not going to impose rare earth controls,” Trump said, signaling a temporary reprieve for U.S. tech and defense industries dependent on Chinese mineral supplies.

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U.S.-China Relations Show Signs of Thaw

The tariff cut follows Trump’s earlier statement that Washington would consider easing duties in exchange for Beijing’s commitment to stem fentanyl exports. The measure reflects a calibrated de-escalation in U.S.-China economic friction amid ongoing disputes over trade, technology, and security in the Indo-Pacific.

Beijing had reportedly sought the lifting of the 20% fentanyl-related tariff, which it viewed as punitive and counterproductive to cooperation on drug enforcement.

Trump emphasized that the United States remains “vigilant” about enforcement but optimistic about China’s recent steps.

“We made tremendous progress,” he said. “This is a win for both countries and a big win for the American people.”

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Background: The Fentanyl Crisis and U.S. Policy

Fentanyl, a synthetic opioid up to 50 times stronger than heroin, has become the leading cause of overdose deaths in the United States, killing over 80,000 Americans annually. The Biden and Trump administrations alike have pressured Beijing to restrict exports of key precursor chemicals used by global drug networks.

Thursday’s announcement suggests a new phase of bilateral cooperation on counternarcotics, even as other geopolitical tensions persist.