US-China Trade Deal Struck on Tariffs and Rare Earths
US President Donald Trump announced a significant trade deal with Chinese leader Xi Jinping on Thursday, following face-to-face talks in Busan, South Korea. The agreement, their first since 2019, aims to reduce tariffs on China while securing commitments from Beijing regarding US soybean purchases, rare earth exports, and combating illicit fentanyl trade. This development marked a key moment at the conclusion of President Trump’s whirlwind Asia trip.
The leaders met for nearly two hours on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. President Trump later described the meeting as a “great success,” noting that the discussions brought “a lot of things…to finalisation” in Busan. He praised President Xi as a “tremendous leader of a very powerful country.”
Key Aspects of the Trade Agreement with China
A central component of the new pact involves crucial rare earth materials. President Trump stated aboard Air Force One that “All the rare earths has been settled, and that’s for the world.” He clarified that this aspect of the deal would run for an extendable one-year period and undergo annual renegotiation, as reported by SindhNews.com. The agreement also includes Beijing’s pledge to resume US soybean purchases, addressing a key agricultural concern for American farmers.
Further strengthening the US-China trade deal, China committed to maintaining the flow of these vital rare earth exports and to crack down on the illicit trafficking of fentanyl. These provisions aim to stabilize key economic sectors and address public health concerns. Looking ahead, President Trump indicated plans to visit China in April for further talks, with President Xi expected to visit the US sometime thereafter.
Immediate Impact of the US-China Trade Deal
News of the agreement immediately boosted global markets. Chinese stocks surged to a decade high, and the yuan currency hit a near one-year peak against the dollar, reflecting investor optimism for an easing of trade tensions. World stock markets, from Wall Street to Tokyo, also registered record highs in the days surrounding the announcement, as global businesses hoped for increased stability following disruptions to supply chains and business confidence.
This breakthrough follows earlier negotiations where US officials had agreed on a framework intended to avert 100% US tariffs on Chinese goods and defer China’s export curbs on rare earths, a sector Beijing largely dominates. While the renewed dialogue offers a reprieve from escalating trade conflicts, many observers question how long this détente might last given ongoing economic and geopolitical competition between the two nations.
Conclusion
The announced trade deal represents a significant step towards de-escalating tensions between the United States and China, immediately boosting market confidence and setting the stage for future high-level discussions. While providing immediate relief and concrete commitments on tariffs, agriculture, and critical materials, the long-term sustainability of the agreement remains an open question amidst the complex dynamics of their bilateral relationship.US-China Trade Deal Reached, Trump Announces
A significant US-China trade deal was announced by President Donald Trump on Thursday, following face-to-face discussions with Chinese leader Xi Jinping. The agreement, struck in the South Korean city of Busan on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, entails a reduction of tariffs on Chinese goods. In return, Beijing committed to resuming purchases of US soybeans, maintaining the flow of crucial rare earth exports, and intensifying efforts to crack down on the illicit trade of fentanyl.
Key Components of the US-China Trade Deal
The nearly two-hour meeting, marking the first direct interaction between the two leaders since 2019,