US President Donald Trump on Thursday said that tariffs on China will be slashed to 47% from 57%, adding that Washington and Beijing have reached a conclusion on many important points regarding trade, including the sensitive rare earths issue.
Speaking to reporters from Air Force One after talks with Chinese President Xi Jinping in South Korea, Trump said that US will slash fentanyl tariffs on Beijing to 10% from 20%.
He added that the rare earths issue with China has also been settled, with US signing a one-year trade pact with Beijing. “We focused on export controls of China on rare earth, and they’re going to keep those flowing, which is quite important,” Trump said.
He added that there’s no roadblock at all on rare earths, asserting that it will "hopefully disappear from our vocabulary for a little while.”
The flow of rare earths had been a key point of contention between the US and China.
'We have a deal'
Trump described his meeting with Xi in Busan as "amazing" and called him "a great leader". He added that “a lot of decisions were made” during the discussions and that both sides had reached several key understandings on trade and cooperation. He rated the meeting 12 out of 10.
"We have come to a conclusion on many important points and we will be handing them to you in a little while," Trump said.
Trump noted that China, as announced earlier, will start buying large quantities of soybeans "which I appreciated", he said.
Earlier, Trump had hinted at the possibility of a trade deal between US and China during his meeting with Xi in South Korea's Busan ahead of the 2025 APEC Summit.
When a reporter asked, "Mr President, do you plan to sign a trade deal today?" Trump replied, "could-be." Speaking about the state of relations, he added, "We all have a great understanding."
Trump went on to say, "I think we're going to have a fantastic relationship for a long period of time, and it is an honor to have you with us." He also described Xi as a "very tough negotiator" before the two leaders began their highly anticipated talks.
Trump's aggressive use of tariffs since returning to the White House for a second term combined with China's retaliatory limits on exports of rare earth elements have given the meeting newfound urgency. The US President had threatened new 100% tariffs on Chinese goods and other trade curbs starting on November 1, in retaliation for China's expanded export controls on rare earth magnets and minerals.
However, Trump repeatedly talked up the prospect of reaching agreement with Xi ahead of the meeting since US negotiators on Sunday said they had agreed a framework with China that will avoid 100% tariffs on Chinese goods and achieve a deferral of China's export curbs on rare earths, a sector it dominates.
(With inputs from agencies)
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