US President Donald Trump and Chinese President Xi Jinping met in South Korea's Busan on Thursday on the sidelines of the Asia Pacific Economic Cooperation (APEC) Summit in Gyeongju.
The meeting, which lasted for one hour and forty minutes, was called a "great success" by the US Republican leader. With this, the Trump administration has announced slashing total tariffs on Chinese goods to 47%. It is a breakthrough amid the escalating trade ties between the two major economies of the world.
The broader trade dispute between Washington and Beijing has been "settled" as of now, as Trump described Jinping as "very positive," and there's a "lot of understanding."
Here is a brief takeaway from the Trump-Xi meeting in Busan, which revolved around trade, agriculture, tariffs, and cooperation:
A rare earth deal: A rare earth deal proved to be a major contention between the two leaders. Trump revealed that they have reached a one-year extendable agreement on the supply of crucial rare earths from China. He stated, "There is no roadblock at all on rare earths...That will hopefully disappear from our vocabulary for a little while."
Fentanyl tariffs on China cut down: A key takeaway from the meeting of the two leaders is that Trump has agreed to cut down fentanyl tariffs on China from 20 percent to 10 percent. The US President said that he agreed because Xi Jinping will work "very hard to stop the flow of fentanyl". Adding, "I believe, they are taking very strong action."
Agriculture cooperation: China will start purchasing American soybeans again, with an immediate effect. It is a positive sign as agricultural cooperation was significantly affected during the tariff battle. The US President said, "Large amounts, tremendous amounts of the soybeans and other farm products are going to be purchased immediately. If you notice, President Xi authorized China to start yesterday."
There was no discussion about the Taiwan issue between the two leaders. But, Trump gave a hint that he will be visiting China in April 2026, after which, Jinping will also travel to the US.
As to when the trade deal will be signed, Trump announced, "Well, I think, pretty soon. We do not have too many major stumbling blocks. We have a deal now. Every year, we will renegotiate the deal, but I think the deal will on for a long time, long beyond the year. We will negotiate at the end of the year."