Busan (South Korea): US President Donald Trump said he will lower his tariff rates on imports of Chinese goods to 47% after meeting with Chinese counterpart Xi Jinping, here, Thursday.
Trump also announced that the meeting yielded an extendable one-year deal on the supply of crucial rare earths, as the meeting set the stage for the leaders of the world’s two largest economies to stabilize relations after months of turmoil over trade issues.
“All the rare earths have been settled, and that’s for the world,” Trump told reporters aboard Air Force One, adding that the deal was for a year and would be renegotiated annually.
Trump’s aggressive use of tariffs since returning to the White House for a second term, combined with China’s retaliatory limits on exports of rare earth elements, gave the meeting newfound urgency. There is a mutual recognition that neither side wants to risk blowing up the world economy in ways that could jeopardize their own country’s fortunes.
The meeting lasted a little over 100 minutes, with the two leaders shaking hands and Trump appearing to say something into Xi’s ear, just before the Chinese leader entered his own limousine. Trump was shortly back aboard Air Force One to return to Washington.
On board, he told reporters he decided to reduce the combined rate from 57% after successful talks that included promises by Xi to curb shipments of fentanyl ingredients to the US.
Trump described his meeting as a “great success” and said he would head to China in April for new talks. “I’ll be going to China in April and he’ll be coming here sometime after that, whether it’s in Florida, Palm Beach or Washington, DC,” Trump told reporters.
“A lot of things we brought to finalisation” at Thursday’s talks in Busan, South Korea, added Trump, praising Xi as a “tremendous leader of a very powerful country.”
Trump also added that China had agreed to buy “tremendous amounts” of soybeans and other farming products. “We’re in agreement on so many elements… tremendous amounts of soybeans and other farm products are going to be purchased immediately,” he said.
Ahead of the meeting, Trump threatened a huge hike that would have boosted tariffs by 100%, but he told reporters he didn’t need to go through with that plan. China did not provide immediate comment on the meeting or any outcomes.
