Yonhap / EPA
Donald Trump and Xi Jinping at the summit in Busan, South Korea
The two leaders agreed to a reduction in US tariffs from 20% to 10% and the lifting of Chinese restrictions on rare earth exports.
Donald Trump and Xi Jinping reached an agreement to ease trade tensions, at a meeting in Busan, South Korea, which the US President described as “incredible”.
The summit, which was the first face-to-face meeting between the two in six years, lasted around one hour and forty minutes, and focused on issues such as rare earths, tariffs and trade.
According to Chinese state media, Xi said the meeting took place after a “basic consensus” reached by economic and commercial teams in Kuala Lumpur, which “provided the necessary conditions” for the leaders to meet. China’s Ministry of Commerce confirmed that previous talks included a 10% reduction in the so-called “fentanyl tariff” from the United States and reciprocal measures from Beijing to lift certain export controls.
Trump said he would reduce tariffs from 20% to 10%, reducing total tariffs on Chinese goods from 57% to 47%, after Xi Jinping agreed to take measures to halt the production of fentanylthe synthetic opioid that has caused many overdose deaths in the US. The American head of state also says that China will lift restrictions on rare earth exports and resume purchases of American soybeans, in an agreement lasting one year and which has the possibility of being renewed if it proves to be effective.
Rare earth minerals are essential for electronics, renewable energy and defense technologies. Beijing’s recent proposals to tighten export controls have reignited tensions and provoked threats of American retaliatory tariffs. Trump hailed the Busan summit for calming tempers, saying that “the whole rare earth issue has been resolved“, quote or .
In addition to trade, international security was also a topic, including the war in Ukraine, which “was a very important topic”. According to Trump, the two leaders want to help resolve the conflict, but the Russian oil purchases by China have not been explored in depth. The crisis surrounding Taiwan was not mentioned publicly, with both leaders refusing to answer questions about the territory.
The summit also generated controversy due to an unexpected announcement by Trump. Minutes before meeting with Xi, Trump published on his social network Truth Social that he had instructed the Pentagon starting nuclear tests “on equal terms” with China and Russia, a measure that he did not detail during the talks. Reporters did not receive any detailed explanation, and the comment was not addressed publicly after the meeting.
Upon leaving Busan and boarding Air Force One, Trump called the meeting “rating 12 out of 10” and also said that he planned to visit China in April.
