US President Donald Trump hailed his meeting with Chinese President Xi Jinping in Busan as a significant step forward in US-China relations, describing it as a fantastic new beginning. The leaders reached various economic and trade agreements, including a 10% reduction in tariffs, the resumption of soybean purchases, and a breakthrough on rare earth exports.
Following over two hours of discussions behind closed doors, Trump expressed optimism about the outcomes, stating that crucial decisions were made and details on key matters would be forthcoming. Trump highlighted Xi’s commitment to combatting fentanyl trafficking, immediate soybean purchases, and the lowering of tariffs from 57% to 47%.
The most pivotal development was the resolution of rare earth trade issues, essential for advanced manufacturing and defense technology. Trump declared that all hindrances to Chinese rare earth exports to the US were resolved, with both countries agreeing on a one-year arrangement expected to continue.
Furthermore, Trump announced a 10% rollback on tariffs, emphasizing the gesture of goodwill and the establishment of a new cooperation framework to replace the previous tariff threats and retaliations. The resumption of significant purchases of US agricultural products, especially soybeans, was agreed upon, providing relief to American farmers affected by the halt in Chinese imports.
Describing the meeting as “amazing” and “truly incredible,” Trump praised the rapport between the leaders and hinted at a potential thaw in the strained relations between the two economic powerhouses. The temporary truce established during the Busan meeting is anticipated to be extended, fostering a positive long-term relationship.
In a sign of improving relations, Trump disclosed plans for a visit to China in April, with Xi reciprocating with a visit to the US later in the year. Notably, Taiwan was not discussed during the talks, signaling a departure from its typical prominence in US-China relations.
The White House is set to release a joint statement outlining the key agreements reached during the Busan meeting in the coming days.