- Trump, Xi hold successful meeting, agree on tariff reductions and trade deals.
- China to resume rare earth exports and purchase American soybeans.
- Talks include potential U.S. chip exports and future trade agreement plans.
U.S. President Donald Trump described his in-person meeting with Chinese leader Xi Jinping a great success, stating he would reduce tariffs on China, while Beijing had consented to permit the export of rare earth elements and begin purchasing American soybeans.
The President informed reporters on Air Force One that the U.S. would reduce tariffs imposed earlier this year on China for its sale of chemicals used to produce fentanyl from 20% to 10%. This reduces China's overall tariff rate from 57% to 47%.
The President mentioned that they also talked about increasing the export of sophisticated computer chips to China, indicating that Nvidia would engage in discussions with Chinese officials. Trump stated that he might finalize a trade agreement with China very soon.
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Even with Trump’s positive outlook with Xi in South Korea, significant tensions between the two largest economies in the world remain possible. Both countries aim for leading roles in manufacturing, advancing new technologies such as artificial intelligence, and influencing global issues such as Russia’s conflict in Ukraine.
Trump’s forceful implementation of tariffs since resuming his position in the White House for a second term, alongside China’s countermeasures on exports of rare earth elements, created a new sense of urgency for the meeting. Both sides acknowledge that neither party wants to endanger the global economy in ways that could threaten their own nation's prosperity.