US President Donald Trump announced a significant reduction in tariffs on Chinese imports, bringing them down to 47% from 57%. This decision came after what he described as an \”amazing\” nearly two-hour meeting with Chinese President Xi Jinping in Busan, South Korea. The face-to-face talks, their first since 2019, took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
In exchange for the tariff reduction, China agreed to several key concessions. These include resuming purchases of US soybeans, maintaining the flow of rare earth exports, and intensifying efforts to combat the illicit trade of fentanyl. Trump shared these details aboard Air Force One shortly after departing Busan, concluding a whirlwind Asia trip that also saw trade breakthroughs with South Korea, Japan, and Southeast Asian nations.
Global stock markets reacted with choppiness as the details of the agreement emerged. Major Asian indexes and European futures saw swings, while China\’s Shanghai Composite Index dipped from a 10-year high. US soybean futures also weakened. Leading up to the meeting, world stock markets from Wall Street to Tokyo had reached record highs, fueled by hopes of a resolution to the ongoing US-China trade war that has disrupted supply chains and shaken global business confidence.
A significant outcome of the discussion was the agreement on rare earth exports. Trump stated that China committed to ensuring these crucial elements continue to flow globally under a one-year agreement, which he expects will be extended. US Trade Representative Jamieson Greer confirmed that China would not impose its proposed rare earth controls following this understanding. This resolves a critical point of tension, as rare earths—17 elements vital for various high-tech applications—had become a potent source of leverage for China in the trade dispute. Previous export controls imposed by China had caused widespread shortages, impacting industries worldwide.
Source: https://www.geo.tv/latest/631215-trump-seeks-trade-war-truce-with-chinas-xi-in-south-korea-talks
