U.S. President Donald Trump on Thursday described his meeting with Chinese President Xi Jinping in South Korea as “extremely successful” and announced a reduction in tariffs imposed on China.
According to Trump, following the talks, Beijing agreed to reopen the export of rare earth elements and resume the purchase of American soybeans. Speaking to reporters aboard Air Force One, he said,
“We are cutting the tariff imposed earlier this year as a penalty for China’s sale of chemicals used to make fentanyl—from 20 percent to 10 percent.”
This move, he added, lowers China’s overall tariff rate from 57 percent to 47 percent. Laughing, Trump remarked,
“If 10 is the best rating, I’d give this meeting a 12.”
He also revealed plans to visit China in April, while President Xi is expected to make a return visit to the United States later this year. Additionally, Trump mentioned that NVIDIA is set to hold discussions with China regarding the export of high-tech computer chips.
Trump expressed confidence that a trade agreement between the two nations could be signed “very soon.” “There are no major obstacles remaining between us,” he stated.
However, long-term competition between the two global powers remains. Both countries continue to vie for dominance in manufacturing, artificial intelligence (AI), and influence over international issues such as the war in Ukraine.
Rare Earth Exports and Agricultural Trade at the Core of the Deal
Following a 100-minute meeting in the South Korean city of Busan, both leaders pledged to ease tensions and enhance cooperation. President Xi, acknowledging differences, said,
“Our national backgrounds may lead to differing perspectives, but cooperation is essential.”
Prior to the meeting, the U.S. had threatened to impose an additional 100 percent import tariff on Chinese goods. However, after China signaled its intention to ease restrictions on rare earth exports and increase purchases of U.S. agricultural products, the atmosphere became more positive.
President Trump referred to the meeting as a “G-2 summit,” calling it a symbol of the leading roles the U.S. and China play in the global economy. The talks were held at a military facility in Busan in a relatively relaxed environment.
Markets reacted positively to the development, with U.S. stocks showing signs of optimism. Still, analysts warned that the progress might be temporary. Craig Singleton, a senior director at the Foundation for Defense of Democracies, said both nations are using this cooperation as a tool to manage instability while maintaining their underlying rivalry.
Since last year, the Trump administration has been gradually imposing new tariffs on China, partly related to the fentanyl issue. After China tightened restrictions on rare earth exports on October 10, Trump had threatened a 100 percent import duty. As a result of the new agreement, the rate has now dropped to 47 percent, which Trump said would take effect “immediately.”
China dominates global production and processing of rare earth minerals—critical components used in fighter jets, electric vehicles, robots, and other high-tech equipment.
President Xi is expected to remain in South Korea for the upcoming APEC Summit, while President Trump returns to Washington.
Former U.S. official Jay Truesdell commented, “President Xi wants to use this opportunity to establish China as a reliable global partner and to strengthen relations with countries dissatisfied with U.S. tariff policies.”
Xi Confirms Trade Consensus After Landmark G-2 Meeting
According to reports from Beijing, Chinese President Xi Jinping confirmed that a consensus had been reached with the United States on economic and trade matters.
The state-run Xinhua News Agency reported the announcement following the Thursday meeting between Xi and Trump in Busan, South Korea.
This marked the first high-level encounter between the two leaders since 2019, signaling a potential turning point in resolving long-standing trade tensions between the world’s two largest economies.
The trade disputes—ranging from rare earth minerals to soybeans and port duties—had caused significant market instability and disrupted global supply chains in recent years.
President Xi emphasized the importance of “positive engagement in regional and international platforms,” stating that both nations’ negotiation teams had
“held in-depth discussions on key economic and trade issues and reached agreements toward their resolution.”
Although the specific details of the consensus have not been made public, Xi said,
“Both sides must refine and finalize follow-up measures as soon as possible, make the agreement stable and actionable, and deliver tangible results that bring stability to China, the United States, and the global economy.”
The Trump–Xi meeting is widely seen as a potential reset in U.S.–China trade relations, with expectations that its positive outcomes will ripple across the global economic landscap
