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Trump and Xi Signal Trade De‑Escalation in Busan as U.S. Backs Korean Nuclear Submarines, Orders Tests

Tariff relief hinges on tougher Chinese fentanyl controls.

Overview

  • Trump and Xi held in‑person talks in Busan and both signaled a willingness to lower tensions after months of economic friction.
  • Talks covered tariffs and rare‑earth exports, with reports that China will delay tighter rare‑earth curbs by a year and the U.S. will hold off a planned 100% additional tariff.
  • Trump said he will reduce the remaining 20% punitive tariffs on Chinese goods if Beijing strengthens enforcement against fentanyl shipments.
  • Trump approved South Korea’s plan to develop nuclear‑powered submarines to be built at a Philadelphia shipyard, a move that would require revisions to fuel‑supply and nuclear‑cooperation rules.
  • He also directed the Pentagon to begin immediate nuclear testing, and a separate meeting with North Korea’s Kim Jong Un did not occur after Pyongyang declined to agree to a summit.