Asian and European equities and U.S. stock futures were mixed after the big event this week unfolded overnight, with a critical trade meeting between President Donald Trump and Chinese President Xi Jinping that yielded a wide range of expected concessions.
Trump said he had an “amazing meeting” with Xi and would immediately slash China’s fentanyl tariffs to 10%. He added that China would resume soybean purchases from American farmers. In other positive developments, Beijing agreed to suspend rare-earths export controls for one year, while Washington would dial back blacklisting subsidiaries linked to Chinese firms. Also, both sides agreed to remove certain shipping tariffs and fees.
President Donald J. Trump meets with Chinese President Xi Jinping in South Korea.
“I think we’re going to have a fantastic relationship for a long period of time, and it is an honor to have you with us.” pic.twitter.com/ISpVBzkvN3
— The White House (@WhiteHouse) October 30, 2025
“I guess, on the scale from zero to 10, with 10 being the best, I would say the meeting was at a 12,” Trump said, adding, “You know, just the whole relationship is very, very important. I think it was very good.”
Here are the most critical developments from the Trump-Xi meeting held on the sidelines of the APEC Summit:
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Beijing to Resume Massive U.S. Soybean Purchases After “Amazing” Trump-Xi Summit
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China Suspends Rare-Earths Export Curbs for One Year
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Trump Immediately Cuts China’s fentanyl tariffs to 10%
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Beijing Vows to Resolve TikTok Dispute With Trump Administration
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U.S. to Pause Rule Targeting Subsidiaries of Blacklisted Chinese Firms
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Trump Discussed Chinese Access to Nvidia’s AI chips but indicated he won’t grant access to Blackwell line
An extended summary of the Trump-Xi meeting (courtesy of Bloomberg Top Live Blogs):
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The big event was the meeting between U.S. President Donald Trump and Chinese leader Xi Jinping in Busan, South Korea, their first in-person summit after six years. The two agreed to enact a tariff truce, roll back export controls and ease other trade barriers.
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The U.S. will cut tariffs on Chinese goods linked to fentanyl from 20% to 10%, a win for Beijing that should boost its export competitiveness.
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Trump also said China will buy “tremendous amounts” of U.S. soybeans and other farm goods, offering relief to American farmers.
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The pair agreed China will pause sweeping controls on rare earth exports in exchange for what Beijing said was a U.S. agreement to roll back an expansion of restrictions on Chinese companies. The U.S. is also extending a pause on some reciprocal tariffs for a year, Beijing said, adding it will work with Washington to resolve issues related to TikTok.
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Trump spoke highly of Xi and their talks, rating the meeting a 12 out of 10. He expressed optimism that China will ramp up investments in the U.S. and said he’ll visit China in April. Beijing says the U.S. has invited Xi to visit the U.S.
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Meanwhile, Trump approved South Korea’s request to build a nuclear-powered submarine at an American shipyard, a move President Lee Jae Myung said would strengthen Seoul’s ability to track North Korean and Chinese vessels and ease the burden on U.S. forces. Lee’s office later clarified he was referring to vessels in waters near North Korea and China, not targeting specific countries.
Xi commented on the trade talks, saying: “We do not always see eye-to-eye with each other, and it is normal for the two leading economies of the world to have frictions now and then. He added, “And in the face of wind, waves and challenges, you and I, at the helm of Chinese relations, should stay the right course and ensure the steady sailing forward of the giant ship of China-US relations.”
Trump left South Korea with striking trade concessions from China, or, put another way, a tactical truce rather than a long-term deal.
“Trump-Xi meeting positive rhetoric but minimal substance beyond what the market already expected,” Goldman Sachs Delta-1 head Rich Privorotsky told clients.
Privorotsky noted:
“U.S. Agreed to cut China tariff rate by 10% on Fentanyl progress. China agrees soybean purchases and 1yr pause on rare earth export restrictions. On the plus side the détente remains firm and capital can flow into China tech without fear of new tariff/restriction. On downside there is not much else substantive. Blackwell was not part of the deal (hence the drop in China tech) nor was TikTok. BOJ feels like nothing done for most part. A bit of travel and arrive in EM especially post the Fed.”
Stocks in Asia closed mixed. European stocks are mostly lower.
US main equity index futures were mixed. This is mostly because Privorotsky is correct, the Trump-Xi lacked substance and no positive surprises.
In a statement following the Trump-Xi meeting, China’s Commerce Ministry said Beijing would work with Trump’s trade team to narrow the list of disputes and expand areas of cooperation.
Trump’s Asia tour netted major trade concessions and renewed cooperation with China, with the aim of striking a broader trade deal potentially next year. He is planning to meet Xi again in April, perhaps the time needed to hammer out and formalize an agreement.
Trump via a Truth Social post. The president hints at a oil/gas deal with China…
Over the past week, Trump also secured trade deals and investment pledges from several Asian countries, including Japan and South Korea.
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