Busan Truce: Trump and Xi Jinping Ease Trade Tariffs, Triggering Digital Asset Rally

On October 30, 2025, a critical summit convened in Busan, South Korea, bringing together President Donald Trump of the United States and Chairman Xi Jinping of the People’s Republic of China. These high-stakes negotiations successfully culminated in a significant, mutually agreed-upon compromise designed to substantially de-escalate ongoing trade tensions between the world's two largest economies. This landmark event marked the first time the leaders had met face-to-face since 2019. The discussions, which lasted approximately one hundred minutes, were immediately hailed by President Trump, who enthusiastically described the resulting accord as “phenomenal,” assigning it an unprecedented rating of “twelve out of ten.”

The central element of the newly forged pact involved a measurable easing of the fiscal burdens placed on Chinese goods entering the US market. Specifically, the American side agreed to significantly lower the average weighted level of tariffs that had been previously levied on Chinese imports. This substantial concession saw the overall rate reduced from 57% down to 47%. A key detail within this adjustment was the targeted reduction of duties related to the control of fentanyl, a major point of contention, which were effectively halved, dropping from 20% to 10%. This move signaled a willingness by Washington to use trade policy as a means to address shared concerns.

In exchange for this considerable tariff relief, Beijing provided concrete assurances regarding crucial US exports. China confirmed its immediate intention to resume large-scale purchases of American soybeans, a sector heavily impacted by previous trade friction. Furthermore, to reassure global supply chains, China committed to maintaining the export volumes of rare earth metals for a minimum period of one year, thereby postponing the implementation of export restrictions that had been previously announced. This reciprocal action was viewed by analysts as a necessary step toward restoring predictability in the trade relationship.

The ripple effect of this sudden geopolitical warming was instantly felt across global financial platforms. With investors rapidly repricing systemic risks downward, market confidence surged. Consequently, global markets, and notably the volatile digital asset sector, experienced a sharp uplift. The price of Bitcoin (BTC), often a bellwether for risk appetite, registered a significant intraday spike, climbing to a high of $109,471.0. This robust performance provided a stark contrast to the recent turbulence: an escalation of the trade war just weeks earlier in mid-October had led to widespread mass liquidations and wiped an estimated $150 billion off the market capitalization.

Macroeconomic commentators suggest that the newly agreed-upon tariff reductions are poised to introduce a much-needed stabilizing effect on the US dollar’s exchange rate and help harmonize global economic expectations. During the course of the summit, Chairman Xi Jinping made a point of emphasizing that China’s developmental path was not in conflict with the American political slogan MAGA, urging instead for a spirit of partnership and cooperation. While market participants are optimistic that the fulfillment of the soybean and rare earth metal commitments will mitigate logistical bottlenecks and tighten quotation spreads, the underlying risk remains. Analysts caution that the fragile truce is conditional, warning that any future escalation could swiftly reintroduce high-risk premiums across all asset classes.