In a surprising turn for U.S.-China relations, President Donald Trump announced that the United States will lower tariffs on Chinese goods and that both nations have agreed to end a long-standing standoff over rare-earth exports. The announcement followed a high-profile meeting between Trump and Chinese President Xi Jinping on the sidelines of the APEC summit in Busan, South Korea.
Speaking to reporters aboard Air Force One after the meeting, President Trump said his administration would reduce tariffs on Chinese imports by nearly 10 percentage points, bringing the overall rate down from about 57% to 47%. He described the move as a “major breakthrough” that would ease pressure on American consumers and businesses. Trump also declared that the “rare-earths roadblock” had been “completely removed,” signaling a deal under which China will lift restrictions on the export of these critical minerals to the United States and other markets.
Rare-earth elements are vital components in high-tech industries, including electronics, renewable energy, and defense manufacturing. Over the past year, China’s export restrictions on these materials had intensified global supply chain concerns and pushed up prices worldwide. Trump called the new understanding with Xi “a win for global industry” and “a sign that the U.S. and China can work together for mutual prosperity.”
According to U.S. trade officials, the agreement includes provisions for China to resume large-scale purchases of American agricultural goods, particularly soybeans, and to cooperate more closely on curbing exports of fentanyl precursors — chemicals that have contributed to the opioid crisis in the United States. Though Trump framed the outcome as a comprehensive settlement, observers noted that Chinese officials have yet to release a detailed statement confirming all the terms outlined by Washington.
Financial markets responded positively to the news, with Asian and U.S. stock futures rising sharply amid optimism that the world’s two largest economies were entering a new phase of cooperation. Analysts, however, urged caution, pointing out that the details of the agreement remain unclear and that both sides have a history of trade negotiations unraveling over enforcement mechanisms and differing interpretations of key terms.
Trump suggested that this breakthrough could pave the way for further diplomatic engagement. He said he plans to visit China in the coming months and hinted at a potential reciprocal visit from President Xi to the United States. Trade experts believe that while the announcements represent a significant political gesture, the success of the deal will depend on follow-up talks to formalize the commitments and ensure compliance on both sides.
In Washington, reaction to the announcement was mixed. Supporters of the move praised it as a victory for U.S. farmers and manufacturers, who have been struggling under the weight of prolonged tariffs and disrupted supply chains. Critics, however, cautioned that easing tariffs without concrete verification measures could weaken U.S. leverage in future negotiations and allow China to retain strategic control over critical mineral supplies.
Despite lingering skepticism, the agreement marks one of the most significant de-escalations in U.S.-China economic tensions in recent years. For now, both nations appear eager to project stability and cooperation after months of strained relations. As markets and policymakers await further details, the world will be watching to see if this truce signals a lasting shift toward a more stable global trade environment or merely a temporary pause in a long-running rivalry.
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