Trump talks with Xi and lowers tariffs on China, ending the “rare earths roadblock”
Donald Trump meets with President Xi Jinping in South Korea and then declares a rare earths breakthrough and tariff cuts with China.
In the wake of what he called “very productive” negotiations with Chinese President Xi Jinping in South Korea, US President Donald Trump has declared a major reduction in trade concerns with China.
The U.S. will reduce tariffs on Chinese imports, Trump said reporters following the talks, adding that both parties were getting closer to a significant trade deal.
Trump hailed the negotiations as a “breakthrough moment” following months of heightened trade tensions between the two biggest economies in the world, saying, “We can sign a trade deal with China pretty soon.”
The talks were held during Trump’s regional visit with the goal of repairing strained relations that had previously deteriorated due to tariffs, technological limitations, and control of vital resources.
With China agreeing to provide the US better access to its rare earth mineral supplies, Trump also declared an end to what he called the “rare earths roadblock.” These minerals have long been a source of geopolitical leverage for Beijing, as they are vital parts of defense systems, electric cars, and electronics.
Trump claimed that the deal would help important American businesses and lessen reliance on Chinese suppliers by saying, “Beijing will give us better access to rare earths.”
A more cautious statement was issued by China, which claimed that the conference had been “constructive and forward-looking” and that both nations had come to “a consensus to resolve major trade issues.” The language emphasized Beijing’s inclination for a cautious approach, despite the fact that both leaders alluded to moves in private.
The ongoing negotiations to sell Chinese-owned TikTok’s US business remain unresolved, and no announcement was made about them despite the encouraging developments.
Analysts pointed out that, considering China’s robust post-pandemic recovery and its expanding role in international trade, President Xi came into the negotiations in a strong position. But in an otherwise tense economic relationship, both leaders seemed keen to convey stability.
