After President Trump’s meeting with Chinese President Xi Jinping in Busan on October 30, 2025, an agreement was reached to cut down on US tariff rates on Chinese imports, achieving a middle ground between the growing tension of the two global superpowers. The average tariff rate will be cut from 57% to 47%, with tariffs on fentanyl precursor drugs — drugs that can be used to manufacture fentanyl — being halved to 10%. Fentanyl is a synthetic opioid drug that is deadly when overconsumed and is a leading cause of American overdose deaths. It is also a trigger of the trade war’s escalation. In March 2025, the Trump administration implemented tariffs on China, Mexico, and Canada, blaming them for intoxicating US citizens with fentanyl. The cut on fentanyl precursors may signify growing trust between the US and China. “Xi will work ‘very hard to stop the flow’ of fentanyl”, said Trump.
China, in response, agreed to lift some retaliatory tariffs and increase agricultural purchases from the US. Its finance ministry confirmed on November 5, 2025, that China will lift tariffs imposed on soybeans and other US agricultural products like corn and wheat. This will take effect starting on November 10. There is widespread optimism about the eased trade of agricultural goods, as displayed by the stock prices rising for many agricultural companies in the following hours after the deal. Many soybean farmers will be able to sell their products to earn a living, as they did before the tariff war. Later on the same day, the Chinese commerce ministry announced that it will take 15 American firms off the export control list and another 10 off the unreliable entity list, boosting international trade.
Despite the optimism shown by numerous reports, it is still important to stay cautious and aware of the larger picture of geopolitics. China still faces a much higher tariff than before Trump came into office, and both sides are increasingly wary of each other. The two are locked in a decades-long rivalry involving multiple sectors such as technology, economy, and politics. Whether or not China buys soybeans from the US is significant to the thousands of farmers and companies, but rather ineffective in resolving the tension between the two countries. This may be a temporary resolution between China and the US, but hopefully, it will achieve a political middle ground that allows the citizens of both countries to breathe and thrive.