From semiconductors to lower tariffs: Key takeaways from Trump-Xi meeting
What's the story
US President Donald Trump has announced a major reduction in tariffs on Chinese goods, following his meeting with Chinese President Xi Jinping. The decision comes after an 'amazing' meeting between the two leaders in South Korea. The new tariff rate on Chinese imports will be reduced from 57% to 47%. Trump has also agreed to cut fentanyl tariffs on China from 20% to 10%. The move marks a significant step toward easing trade tensions between the two economic powerhouses.
Trade details
China to by American soybeans, breakthrough on the rare-earths issue
During the meeting, Trump revealed that China has agreed to make large-scale purchases of American soybeans. Both sides also achieved a breakthrough on the rare-earths issue, long a major point of contention. Trump announced that they agreed on a one-year, extendable deal for China's supply of critical rare earths. "There's no roadblock at all on rare earths... That will hopefully disappear from our vocabulary for a little while," he said, highlighting easing of tensions in this strategically important sector.
Agreement details
Trump and Xi discussed chips and Ukraine issue
Trump and Xi also discussed cooperation on Ukraine and semiconductors. Trump said Beijing would be "talking to NVIDIA and others about taking chips," but clarified that "we're not talking about Blackwell chips." On Ukraine-Russia issue, the US president said the topic "came up very strongly." Xi is "going to help us, and we're going to work together On Ukraine"," he added.
Future prospects
Trump announces plans to visit China in April
Trump said the meetings had cleared several "roadblocks" and hinted at "major outcomes" to be revealed soon. He also announced plans to visit China in April, with Xi expected to visit the US after that. Notably, Trump said Taiwan was not discussed during their meeting as the topic "never came up."