US President Donald Trump announced significant economic agreements with Chinese President Xi Jinping following over two hours of discussions in Busan, South Korea, on Thursday. The meeting yielded commitments on tariff reductions, agricultural purchases, and rare earth exports.
Key Economic Agreements
Trump disclosed a 10-percentage-point tariff reduction on Chinese goods, lowering rates from 57% to 47%. “I wouldn’t say everything was discussed, but it was an amazing meeting. 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 stated.
Rare Earth Minerals Breakthrough
A significant development involved rare earth minerals, critical for high-tech manufacturing, electric vehicles, and defense equipment. “All the rare earth issue has been settled,” Trump announced, adding that “no more roadblocks” would impede Chinese exports to the United States.
A US official confirmed Beijing agreed to maintain rare earth exports under a one-year arrangement expected to extend, potentially easing supply chain concerns for American technology and defense companies.
Agricultural Trade Resumption
China committed to immediately resume US agricultural purchases, providing relief to American farmers affected by previous trade restrictions.
“We’re in agreement on large amounts, tremendous amounts of soybeans and other farm products to be purchased immediately,” Trump said, describing it as “a big win for our farmers.”
Fentanyl Cooperation
Trump reported Xi pledged intensified efforts against fentanyl production, a persistent issue in bilateral relations. “As you know, I put a 20% tariff on China because of the fentanyl coming in, which is a big tariff. I reduced it by 10% so it’s 10% instead of 20% effective immediately,” Trump explained aboard Air Force One.
Diplomatic Engagement
The meeting represents the first face-to-face encounter between the leaders since both returned to power this year. Trump characterized the session positively: “Overall, on a scale from zero to ten, the meeting was a twelve.”
Trump announced plans to visit China in April, with Xi expected to make a reciprocal US visit later in 2025. Notably, Taiwan was not discussed during their talks.
The White House plans to issue a joint statement detailing the Busan agreements later this week.
