Reduction of US tariffs on China linked to fentanyl possible, Trump signals ahead of Xi meeting

US President Donald Trump indicated on October 29, 2025, that he expects to reduce tariffs imposed on Chinese goods related to fentanyl in exchange for Beijing’s commitment to toughen controls on precursor chemicals used to manufacture the deadly synthetic opioid.

This announcement came ahead of a highly anticipated bilateral meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea.

The US imposed a 20% tariff on certain Chinese exports linked to fentanyl production earlier this year, responding to the nation’s role as a significant source of precursor chemicals that contribute to the opioid crisis in America.


Fentanyl is responsible for hundreds of thousands of overdose deaths, making the regulation of its supply chain a central issue for US policymakers.

Details of the possible trade framework

The emerging agreement under discussion involves the United States lowering some of the fentanyl-related tariffs by as much as 10%, contingent upon China’s pledge to enhance oversight of chemical exports connected to fentanyl manufacturing lines. The move would represent a partial rollback, underscoring a pragmatic approach to balancing trade tensions with public health priorities.

This development aligns with broader efforts to de-escalate the protracted US-China trade conflict, which has included threats of tariffs exceeding 100% in certain categories and reciprocal tariffs from China on American agricultural products and energy exports.

The proposed deal could also include discussions on agriculture, potentially benefiting US farmers by easing tariffs on soybeans and other key commodities.

Trump’s statement and outlook

Before departing for Asia, Trump expressed optimism about the upcoming talks, stating, “We have a lot to talk about with President Xi, and he has a lot to talk about with us… I think we’ll have a good meeting.” He highlighted the potential for a “very comprehensive deal” addressing not only fentanyl but broader trade issues, including energy purchases from Russia and agricultural trade.

The prospect of tariff reductions tied to concrete action on fentanyl chemicals has been well received in financial markets, reflecting hopes for a thaw in trade tensions which have weighed on global economic growth.

Observers note that the negotiation’s success depends on China’s ability and commitment to enforce stringent export controls, a challenge given the complexity of global supply chains.

The fentanyl tariffs have faced legal scrutiny in US courts, with questions raised about their legality under existing trade laws. The administration is currently appealing rulings that halted enforcement of some of these tariffs.

Meanwhile, the trade dialogue seeks to use tariff adjustments as leverage to achieve substantive cooperation on the opioid crisis.

What to expect from Trump and Xi

Thursday’s summit meeting represents the first in-person engagement between Trump and Xi since Trump’s return to the presidency earlier this year. Market watchers and policymakers globally will be closely analyzing outcomes for indications of progress on trade, public health cooperation, and geopolitical stability.

This potential easing of fentanyl-related tariffs as part of a broader trade framework signals a nuanced shift in US-China relations, blending economic negotiation with urgent drug policy objectives.

It could mark a significant step towards reducing tensions that have disrupted global markets while addressing one of the most pressing health crises affecting the United States.