The Busan truce: a calmer year for trade?
After a year of tariff swings, the world's two biggest economies agreed to step back. Sellers get some breathing room for 2026 planning — but not certainty.
By the Xuru Technologies team · 1 November 2025
Key takeaways
- On 30 October 2025 Presidents Trump and Xi met in Busan, South Korea.
- The US said it would cut fentanyl-related tariffs on Chinese goods from 20% to 10%.
- China agreed to pause new rare earth export controls and resume some purchases, in a one-year arrangement.
- Sellers should use the calmer period to strengthen margins and diversify, not assume permanence.
Stability is valuable for small businesses. A year of steadier rules makes stock planning, pricing and marketing easier.
What happened
BusinessDay (Reuters) and Deseret News summarised the outcomes and remaining open issues.
What it means for sellers
- Slightly lower costs on many Chinese goods.
- Supply chain relief for products relying on rare earths and electronics components.
- Planning window for 2026 ranges and pricing.
- Risk remains — agreements can change.
2026 planning checklist
| Area | Action |
|---|---|
| Pricing | Rebuild margins on best-sellers |
| Sourcing | Keep at least one alternative supplier warm |
| Stock | Plan Q1–Q2 orders with current tariff rates |
| Website | Refresh product pages and shipping information for the new season |
Frequently asked questions
Are all US tariffs on China removed?
No. Some tariffs were reduced, but significant tariffs remain on many goods.
Should we lower prices now?
Only where costs fall meaningfully. Many sellers use the relief to rebuild margins.
Is this truce permanent?
It was framed as a one-year arrangement. Keep contingency plans.
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