Trump, Xi Strike Partial Trade Deal in Busan; Tariffs Cut, Rare Earth Exports Restored

BUSAN: US President Donald Trump announced on Thursday that he had agreed to reduce tariffs on Chinese goods to 47 percent in exchange for China resuming US soybean imports, maintaining rare earth exports, and taking stronger action against the illegal fentanyl trade.

Speaking to reporters aboard Air Force One after his face-to-face meeting with Chinese President Xi Jinping in Busan — their first since 2019 — Trump described the discussion as “an amazing meeting,” calling it a highlight of his Asia tour, which also included trade talks with South Korea, Japan, and Southeast Asian nations.

Trump said the new understanding with Beijing would see tariffs on Chinese imports fall from 57 percent to 47 percent, adding that both sides showed a willingness to rebuild ties strained by years of trade tensions.

The talks between Trump and Xi lasted around one hour and forty minutes and concluded without an official joint statement. Trump departed directly for Washington after the meeting, while Xi was seen leaving the venue shortly afterward.

Before the talks began, Trump referred to Xi as a “very tough negotiator” but said he expected a “fantastic relationship for a long period of time.” Xi, meanwhile, stressed the need for both countries to act as “partners and friends,” emphasizing that China and the United States must work together for global stability and progress.

Trump revealed that one of the key outcomes of the talks was China’s agreement to maintain rare earth exports under a one-year deal, which he suggested could later be extended. “All of the rare earth has been settled,” he told reporters. “This is a worldwide issue, and we’ve resolved it for now.”

Rare earth elements — critical for high-tech industries, electric vehicles, and defense manufacturing — have become a major bargaining chip in US-China relations. Export restrictions introduced by Beijing earlier this year had caused shortages across global markets.

Following the Busan talks, US Trade Representative Jamieson Greer confirmed that China would suspend its proposed new restrictions on rare earth exports, marking what he called “a breakthrough for the global supply chain.”

While details remain unclear on whether existing curbs will be lifted, Trump’s announcement signals a modest easing in tensions between the world’s two largest economies.