Trump Cuts China Tariffs to 47% After ‘Amazing’ Xi Meeting

APP/Reuters

Busan: US President Donald Trump on Thursday announced that he had agreed to cut tariffs on Chinese imports to 47% from 57%, following a high-stakes meeting with Chinese President Xi Jinping in the South Korean city of Busan.

The agreement, reached during their first face-to-face talks since 2019, includes commitments by Beijing to resume US soybean purchases, maintain exports of rare earth elements, and crack down on the illicit trade of fentanyl.

“I thought it was an amazing meeting,” Trump told reporters aboard Air Force One after departing Busan, calling the discussions “very productive.” 

The talks, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit, lasted nearly two hours and concluded Trump’s whirlwind Asia tour, during which he also claimed progress on trade with South Korea, Japan, and Southeast Asian nations.

Global markets reacted nervously as Trump revealed details of the deal. Asian stocks and European futures fluctuated, with China’s Shanghai Composite Index slipping from a 10-year high. Meanwhile, US soybean futures weakened despite Beijing’s pledge to resume imports.

In the days leading up to the summit, markets from Wall Street to Tokyo had rallied on optimism of a breakthrough in the long-running U.S.–China trade war, which has disrupted supply chains and shaken business confidence worldwide.

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During the meeting, Xi reportedly told Trump it was “normal for the two leading economies of the world to have frictions now and then,” while both sides signaled readiness to reduce tensions.

Rare Earth Export Dispute ‘Settled’

Trump said China had agreed to keep rare earth exports flowing under a one-year arrangement that could later be extended. “All of the rare earth has been settled,” he said, calling the agreement a “worldwide situation, not just a U.S. one.”

Rare earths — a group of 17 critical elements essential for producing electronics, military hardware, and electric vehicles — have become a key point of leverage in the trade standoff. China, which dominates the sector, imposed export controls in April that triggered global shortages and temporarily halted production in some industries.

While Beijing expanded restrictions in October to include 12 elements and related processing equipment, it remains unclear whether the new understanding with Washington covers those additional curbs.

US Trade Representative Jamieson Greer, traveling with Trump, confirmed that China had agreed not to impose its planned rare earth controls but declined to comment on existing restrictions.

As Trump wrapped up his Asia tour, he expressed optimism that the deal marked “a big step forward” in repairing trade ties between Washington and Beijing — though analysts cautioned that questions linger over how long the current détente will last.