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President Donald Trump on Thursday said he will cut tariffs on Chinese imports after a highly-anticipated meeting with Chinese President Xi Jinping in South Korea, citing new understandings on fentanyl enforcement, farm trade, and a pause on rare-earth export limits.
The meeting in the City of Busan marked the final stop of Trump’s Asia trip, which also included stops in Malaysia and Japan, and focused on cooling the economic standoff between Washington and Beijing.
Since returning to the White House in January, Trump has levied major tariffs on Chinese imports – a move that prompted Beijing to tighten its control over exports of rare earth elements. Both leaders signaled interest in reducing tensions to avoid further shocks to the global economy.
Ahead of Thursday’s summit, U.S. and Chinese aides signaled the discussion would center on tariffs, advanced technology exports, and supply chain competition – key sticking points that have long defined the relationship between the two powers. Trump told reporters he believed the two sides could reach common ground.
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After the talks, Trump said he and Xi had “an amazing meeting” and that both sides had reached “an outstanding group of decisions” on key economic and security issues. The president said Xi agreed to begin immediate purchases of U.S. soybeans and other farm goods and that China would work “very hard” to block fentanyl from entering the U.S.
Trump said he would cut the tariff rate on Chinese imports by 10 points – from 20% to 10%, according to his description – though an aide clarified that the rates would be closer to 45-47%, in response to Xi’s promise to crack down on the flow of fentanyl.
“I believe he’s going to work very hard to stop the death that’s coming in,” Trump said.
The two sides also reached an understanding on rare earth exports, as China agreed to pause planned export controls for a year, Trump said. A senior administration official later clarified that both leaders agreed to revisit the agreement next year, and that the arrangement could be extended at that time.
The U.S. president also said he spoke to Xi about chip technology. He said China would be in discussions with Nvidia about additional semiconductor purchases but that the company’s newest generation of advanced processors were not part of the conversation.
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The president described the outcome of the deal as a one-year framework agreement aimed at being renewed annually.
“We have a deal,” Trump said. “Every year we’ll renegotiate the deal, but I think it’ll go on for a long time.”
Trump also said the administration announced plans for reciprocal visits, with the U.S. president traveling to China in April and Xi visiting the U.S. later this year.
The meeting, which lasted roughly an hour and forty minutes, concluded with a brief photo opportunity before the two leaders went their separate ways. Afterward, neither side released details about what was discussed. Trump departed Busan without taking questions, waving to the press pool as he climbed the steps to Air Force One.
As cameras clicked, Trump leaned toward Xi and appeared to speak quietly before shaking hands and boarding the plane.
Trump and Xi spoke briefly to the press before heading into a closed-door session for less than two hours with senior aides.
“It’s an honor to be with a friend of mine,” Trump said of Xi, adding that while some issues remain unresolved, “I think we’ve already agreed to a lot of things.”
Xi said in his opening remarks that “it feels very warm seeing you again because it’s been many years.”
The Chinese leader acknowledged that occasional friction between major powers is natural, adding that the U.S. and China “can still find ways to thrive side by side.”
Earlier aboard Air Force One en route to South Korea, Trump suggested he may reduce tariffs imposed on China due to Beijing’s cooperation in curbing fentanyl exports.
“I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” Trump said, adding, “The relationship with China is very good.”
The Associated Press contributed to this report.
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