President Donald Trump announced a trade agreement of sorts with his Chinese counterpart, Xi Jinping, following a closed-door meeting in South Korea on Wednesday.
Ahead of the meeting, Trump posted a message on Truth Social referencing nuclear weapons testing, which many observers interpreted as a possible warning to China against taking aggressive actions.
Xi described his meeting with former President Donald Trump as “warm,” saying it was good to see him again and emphasizing that the two countries should maintain a stable relationship despite their differences.
“We have a deal,” Trump said during a post-meeting question-and-answer session. “Every year we’ll renegotiate the deal, but I think it’ll go on for a long time.”
Trump announced Thursday that he will reduce tariffs on Chinese imports following the closely watched meeting in Busan.
The president cited new agreements on fentanyl enforcement, agricultural trade, and a temporary pause on China’s limits on rare-earth mineral exports as key outcomes of the talks, Fox News reported.
Ahead of Thursday’s summit, U.S. and Chinese officials indicated that the talks would focus on tariffs, advanced technology exports, and supply chain competition — longstanding points of tension between the two countries.
Trump told reporters he was optimistic that the two sides could find common ground, Fox said.
Trump announced that he would reduce the tariff rate on Chinese imports by 10 percentage points — from 20% to 10%, according to his remarks — following Xi’s pledge to take stronger action against fentanyl trafficking.
However, a Trump administration aide later clarified that the adjusted rates would remain in the range of 45% to 47%.
“I believe he’s going to work very hard to stop the death that’s coming in,” Trump said of Xi’s pledge to interdict fentanyl trafficking.
Trump said the two sides reached an agreement on rare earth exports, with China agreeing to suspend planned export controls for one year. A senior administration official later clarified that both leaders would revisit the agreement next year and consider extending it at that time, Fox noted.
The former president also said he discussed semiconductor technology with Xi, noting that China would hold talks with Nvidia about purchasing additional chips. He added that the discussions did not include Nvidia’s newest generation of advanced processors.
The meeting, which lasted about an hour and forty minutes, ended with a short photo opportunity before the two leaders departed separately.
As cameras flashed, Trump leaned toward Xi and appeared to exchange a few quiet words before shaking hands and boarding his plane. Earlier, both leaders had made brief remarks to the press before beginning their closed-door discussions.
Some observers remarked that Xi appeared to look uncomfortable or even intimidated by Trump.
“It’s an honor to be with a friend of mine,” Trump said of Xi, adding that while some issues remain unresolved, “I think we’ve already agreed to a lot of things.” Xi said in his opening remarks that “it feels very warm seeing you again because it’s been many years.”
The Chinese leader did say that occasional friction between major powers is natural, but went on to say that the U.S. and China “can still find ways to thrive side by side.”
While aboard Air Force One on the way to South Korea, Trump indicated that he might lower tariffs imposed on China because of Beijing’s efforts to limit fentanyl exports.
“I expect to be lowering that because I believe that they’re going to help us with the fentanyl situation,” Trump said, adding, “The relationship with China is very good.”
“I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products,” Trump later said in a lengthy Truth Social post.
“Additionally, China has agreed to continue the flow of Rare Earth, Critical Minerals, Magnets, etc., openly and freely. Very significantly, China has strongly stated that they will work diligently with us to stop the flow of Fentanyl into our Country. They will help us end the Fentanyl Crisis. China also agreed that they will begin the process of purchasing American Energy,” he added.