Trump announces agreement with China on tariffs and rare earth exports
US President Donald Trump announced a new trade agreement with China that includes reducing tariffs on Chinese imports from 57% to 47%, in exchange for Beijing resuming purchases of US soybeans and ensuring continued exports of rare earth minerals, along with imposing stricter restrictions on the trade of fentanyl.
This announcement came after a face-to-face meeting between Trump and Chinese President Xi Jinping in the South Korean city of Busan, the first meeting between the two leaders since 2019.
Speaking to reporters aboard Air Force One after departing Busan, Trump described the meeting as great and productive, emphasizing that the agreement represents a significant step toward easing trade tensions between the world’s two largest economies.
He added that China had demonstrated a willingness to increase its agricultural and energy imports from the United States, while Washington had committed to easing some of the tariffs imposed during the previous trade war.
Global markets experienced notable fluctuations following the release of the agreement’s details; Asian stock indices recorded a slight decline after initial gains, while US soybean futures fell as investors awaited details of the agreement’s practical implementation.
The White House explained that the meeting, which lasted about two hours on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, focused on rebuilding trade trust and strengthening coordination on technology and rare earth minerals.
After the meeting, Trump escorted his Chinese counterpart to his car in a scene described by the media as a positive sign of warming relations after years of tension.
Trump noted that the new agreement avoids imposing 100% US tariffs on Chinese goods in exchange for postponing Chinese restrictions on rare earth exports — a sector in which China is the dominant player globally.
Despite the positive atmosphere, observers believe the agreement remains fragile, given the escalating economic and geopolitical competition between Washington and Beijing, raising questions about the sustainability of this trade breakthrough in the coming months.
