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Trump Signals Cut to China Fentanyl Tariff Ahead of Xi Meeting at APEC

Washington is weighing tariff relief in exchange for enforceable curbs on fentanyl precursor exports.

Overview

  • Trump said he expects to lower the 20% fentanyl-linked tariff before his Thursday meeting with Xi Jinping in South Korea, calling for Chinese cooperation with U.S. law enforcement.
  • The Wall Street Journal, cited by Reuters, reported the tariff could be reduced to roughly 10% if Beijing commits to tighter controls on precursor chemicals used to make fentanyl.
  • Negotiators reached a preliminary framework in Malaysia that U.S. officials say could pause escalation, with discussions including a one-year deferral of China’s new rare-earth export controls and a U.S. hold on threatened measures.
  • Trump indicated the rare-earth timing is still being worked out, while broader talks reportedly span soybean purchases, reduced shipping fees, a potential TikTok U.S. transaction, and select export control pauses.
  • Asked about Taiwan, Trump said it may not be discussed, and he emphasized priorities including fentanyl and farmers as the leaders seek to lock in a deal framework at the APEC gathering.