WASHINGTON — U.S. President Donald Trump announced Friday that he would fully eliminate fentanyl-related tariffs on Chinese goods if Beijing demonstrates concrete action to stem the export of the deadly synthetic opioid and its precursor chemicals, building on a partial reduction he enacted just a day earlier. The move, which slashes the levy from 20% to 10%, signals a tentative de-escalation in the ongoing U.S.-China trade tensions that have defined much of Trump's second term. Speaking to reporters aboard Air Force One as he returned from a whirlwind Asia tour, Trump expressed optimism about the prospects for further cooperation, crediting recent discussions with Chinese President Xi Jinping for the progress.
"China’s working very hard and I really believe that they have an incentive," Trump said, referencing his Thursday meeting with Xi on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea. "As soon as we see that, we’ll get rid of the other 10%." The fentanyl tariff, first imposed in early 2025 as one of Trump's initial post-inauguration actions against Beijing, was designed to pressure China into curbing the flow of precursor chemicals that fuel the U.S. opioid crisis. Fentanyl, a synthetic opioid 50 times more potent than heroin, has been linked to over 70,000 overdose deaths annually in the United States, according to Centers for Disease Control and Prevention data, with much of the supply chain tracing back to Chinese manufacturers shipping raw materials to Mexican cartels.
The partial cut brings the overall average tariff on Chinese imports down to 47% from 57%, a relief for U.S. businesses reliant on Chinese supply chains but still far above pre-2025 levels. Trump emphasized that the full elimination would hinge on verifiable enforcement measures from China, including stricter export licensing and enhanced bilateral intelligence sharing. "Xi promised to work very hard to stop the flow," Trump added, echoing statements from the White House that described the Busan talks as "amazing" and rating them a "12 out of 10."
The fentanyl announcement capped a week of high-stakes diplomacy during Trump's first major Asia trip of his second term, which spanned Malaysia, Japan, and South Korea. The itinerary, originally framed as a "mission of friendship and goodwill," yielded a cascade of economic commitments that Trump touted as a $3 trillion windfall for the U.S. economy. "We took in approximately $3 trillion over the last few days from the trips that we made," he said Friday, linking the figure to a flurry of investment pledges, aircraft sales, and energy deals across the region.
Central to the trip's success was the landmark U.S.-China agreement hammered out in Busan, which addressed not only fentanyl but also longstanding flashpoints over agricultural exports and critical minerals. In exchange for the tariff reduction, China committed to immediately resuming large-scale purchases of U.S. soybeans and other farm products— a boon for American farmers battered by Beijing's retaliatory boycotts earlier this year. Trump highlighted record soybean orders, noting that China agreed to buy 12 million metric tons through January 2026, followed by 25 million tons annually for the next three years. "We have numbers coming to our farmers that the farmers have never seen before from China," he said. "Our farmers are very happy. I suggest that they go out and buy larger tractors and more land."
This agricultural revival stems from a broader one-year truce that also averts China's threatened export controls on rare earth minerals—elements essential for manufacturing everything from electric vehicle batteries to fighter jets and AI semiconductors. Beijing, which dominates 80% of global rare earth production, had announced stringent licensing requirements in October 2025, prompting Trump to threaten 100% tariffs on all Chinese goods. Under the deal, China will pause these restrictions for 12 months while "re-examining" them, ensuring uninterrupted U.S. access in the interim. In return, the U.S. agreed to suspend for one year an expansion of its "Entity List," which bars Chinese firms from accessing advanced American technology on national security grounds.
Analysts view the rare earths compromise as a pragmatic win for both sides. "The U.S. is highly dependent and will be for a number of years still," said Tom Wilders, a supply chain expert at the Brookings Institution, estimating it could take 5 to 10 years for domestic production to ramp up significantly. For China, the pause buys time amid its own economic slowdown, where rare earth exports have become a key leverage tool in the trade war. U.S. Treasury Secretary Scott Bessent described the outcome as averting "a crisis of his own making," crediting pre-trip negotiations in Kuala Lumpur for laying the groundwork.
Beyond the Xi summit, Trump's tour notched additional economic milestones. In Japan, he finalized a trade pact injecting $550 billion into the U.S. economy over the next decade, including commitments to bolster supply chain resilience against "unfair trade practices of third parties"—a veiled reference to China. South Korea, the trip's finale, delivered $350 billion in promised investments, highlighted by Korean Air's $36.2 billion order for 103 Boeing aircraft and Korea Gas Corporation's purchase of 3.3 million tons of U.S. liquefied natural gas. In Malaysia, during the ASEAN summit, Trump oversaw trade frameworks with Thailand, Cambodia, and others covering 68% of the bloc's $475 billion in annual U.S. two-way trade, emphasizing export controls and anti-duty evasion measures. He also mediated an expanded ceasefire between Thailand and Cambodia, a diplomatic feather in his cap that regional leaders praised for fostering stability in Southeast Asia's $3.8 trillion economy.
The trip's pageantry was equally notable. In South Korea, President Lee Jae Myung presented Trump with a gold medal and crown, symbols of alliance amid talks on everything from AI infrastructure—via Amazon's $5 billion cloud investment—to maritime security. Yet, beneath the optics, challenges loomed. Trump sidestepped questions on Taiwan, a perennial irritant, saying it "may not even come up," despite Xi's vows of reunification. Nvidia's advanced AI chips, restricted under U.S. export controls, were discussed but yielded no breakthroughs. And while fentanyl flows have dipped—U.S. Customs and Border Protection reported a 2025 decline consistent with Mexican production hurdles—skeptics like CNN analysts warn of "red flags" in China's track record of unfulfilled promises.
Back in Washington, reactions were mixed. Farm groups, including the American Soybean Association, hailed the deals as a "lifeline," with prices rebounding 5% on Thursday alone. Agriculture Secretary Brooke Rollins called it "big news" for rural America. Tech lobbies welcomed the Entity List pause, but defense hawks in Congress decried it as a concession that could embolden Beijing's military tech ambitions. The Senate, in a 51-47 vote Thursday, passed a bill to nullify Trump's global tariffs on over 100 nations, underscoring domestic pushback against his protectionist agenda.
Economists project the China truce could add 0.5% to U.S. GDP growth in 2026 by stabilizing supply chains and boosting exports, per Evercore ISI estimates. Yet, with annual renegotiations baked in—"Every year we'll renegotiate the deal," Trump said—the peace may prove fragile. As one Reuters analyst noted, "This offers a one-year reprieve... but geopolitical tensions could reignite the trade war at any time."
Trump, undeterred, framed the outcomes as vindication of his "America First" approach. "We have a deal now... long beyond the year," he declared, eyes already on a planned April visit to China. For fentanyl-ravaged communities and tariff-weary manufacturers, the coming months will test whether rhetoric translates to results. As Air Force One touched down in Washington late Friday, the president stepped off with a familiar swagger, promising more "trillions" to come.
