Trump, Xi reach rare earths agreement as US announces 10% tariff cut on Chinese goods after ‘amazing’ talks

Calling it an “amazing” meeting that marked a “fantastic new beginning” in US-China ties.

President Donald Trump on Thursday announced a breakthrough package of economic understandings with Chinese President Xi Jinping, featuring tariff relief, renewed agricultural trade, and a deal on rare earth exports. Following over two hours of closed-door discussions in Busan, Trump declared that “a lot of decisions were made” and that “important conclusions” would soon be made public.

“We agreed that President Xi will work very hard to stop fentanyl, soybean purchases will start immediately, and tariffs on China will be lowered from 57% to 47%,” Trump said, hailing the dialogue as “an amazing meeting.”

RARE EARTHS DEAL SIGNALS THAW

The most notable outcome was a rare earths agreement, which Trump said had “completely settled” months of trade tension over the critical minerals used in electronics, EVs, and defence technology. A senior US official said Beijing had agreed to ensure steady supplies of rare earths to the United States under a one-year framework that could be extended. The move is expected to ease supply chain concerns for American industries dependent on these materials.

TARIFF CUTS AND AGRICULTURE BOOST

Trump also announced a 10% reduction in tariffs on Chinese goods — from 57% to 47% — as a “gesture of good faith.” The rollback follows months of tariff escalation that strained global trade. “China will immediately start buying soybeans again,” Trump said, describing the resumption of agricultural purchases as a “big win for our farmers.”

COOPERATION ON FENTANYL

Trump said Xi had agreed to intensify efforts to curb fentanyl production, which US officials blame for worsening the opioid crisis.

“I had imposed a 20% tariff because of the fentanyl issue,” Trump said. “Now it’s 10%, effective immediately, as a sign of goodwill.”

‘A TWELVE OUT OF TEN’ MEETING

Trump, known for his flamboyant praise, described the Busan summit as “a twelve out of ten,” calling Xi “a great leader” and predicting a “fantastic relationship for a long time.” The talks, their first in-person meeting since both leaders returned to office, appeared to lay the groundwork for a temporary truce in US-China tensions over trade and security.

UPCOMING VISITS

Trump announced that he would visit China in April, with Xi expected to travel to the United States later in the year. Interestingly, Trump said that Taiwan “never came up” during their conversation — an unusual omission in recent US-China exchanges.