Donald Trump has cut tariffs on China by 10 per cent with immediate effect following what he called an “amazing” 100-minute meeting with Xi Jinping in the South Korean port city of Busan.
The US president said his Chinese counterpart agreed to pause controls on exports of rare earths for a year and to resume Chinese purchases of American soybeans.
Mr Trump said he was halving a 20 per cent levy imposed on China on account of its alleged failure to halt the export of chemicals used to produce the drug fentanyl. He said the cut, which brings the tariff on China to 47 per cent, followed a promise by Mr Xi to “work very hard” to address the problem.
“It was an amazing meeting,” Mr Trump said. “I guess on the scale from zero to 10, with 10 being the best, I would say the meeting was a 12.”
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In early comments, Chinese state media reported Mr Xi as saying a “consensus” with Mr Trump had been reached on trade issues, and that there were good prospects for co-operation on trade, immigration and fraud.
The US president said Mr Xi agreed to a one-year deal that would see China pause sweeping controls on the export of rare earths used in the manufacture of everything from cars and aircraft to consumer electronics. China has a near-monopoly on the minerals, refining 90 per cent of the world’s supply.
China has also agreed to start buying soybeans from the US after an effective boycott of the oilseed since the beginning of this year. China bought almost half of the US crop last year and reopening the market was a key demand of American farmers.
Mr Trump said he and the Chinese premier had discussed the issue of semiconductors and US restrictions on the sale to China of the most advanced microchips. He said Beijing would have to negotiate with semiconductor manufacturer Nvidia but he indicated that the company’s latest Blackwell chips were not discussed.
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At the start of the meeting, Mr Xi described the US and China as “partners and friends”, telling Mr Trump that China’s development went hand in hand with the ambition to “make America great again”. But he said it was normal for the world’s two biggest economies to experience friction from time to time.
“Our two countries are fully able to help each other succeed and prosper together. I have stated in public many times that China and the US should be partners and friends. This is what history taught us and reality demands,” he said.
Mr Xi praised Mr Trump’s involvement in efforts to achieve peace in Gaza and to end a border conflict between Cambodia and Thailand. And he suggested that Beijing and Washington could work together to address global issues.
“Mr President, you care a lot about world peace and you’re very enthusiastic about settling various regional hotspot issues,” Mr Xi said.
“The world today is confronted with many tough problems. China and the US can jointly shoulder our responsibility as big countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world. I look forward to exchanging views with you on questions important for our two countries and the world.”
Mr Trump said that the two leaders discussed Ukraine during their meeting although he appears not to have asked Mr Xi to buy less Russian oil. And the US president said the subject of Taiwan did not come up.
The official Chinese account of the meeting offered no details of the agreement but said the two negotiating teams had reached a consensus on how to solve their problems. It said both teams now had to refine and finalise the agreement as soon as possible so they can deliver on it and boost both economies and that of the world.
“Economic and trade relations should continue to be the ballast and engine of Sino-US relations, not a stumbling block or point of conflict. Both sides should consider the long-term benefits of co-operation and avoid falling into a vicious cycle of mutual retaliation,” the Chinese readout said.
“Xi Jinping emphasised that dialogue is better than confrontation. Communication between China and the US should be maintained at all levels and through all channels to enhance understanding.”
Mr Trump said after the meeting that he would visit China next April and that Mr Xi would visit the US later next year.
