Trump and Xi Reach Trade Agreement: Tariff Reductions and Resumption of U.S. Soybean Exports to China
U.S. President Donald Trump announced that the United States has reached a trade agreement with China, which includes a reduction in tariffs in exchange for Beijing resuming its purchase of American soybeans and ensuring the continued export of rare earth metals. Additionally, the agreement imposes strict regulations on illegal fentanyl trade.
This announcement came after a direct meeting between Trump and Chinese President Xi Jinping in Busan, South Korea, marking their first bilateral discussions since 2019 on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, which lasted about two hours.
Trump indicated that tariffs on Chinese imports would decrease from 57% to 47%, emphasizing that China would immediately purchase significant quantities of soybeans and other agricultural products from the United States. This represents a glimmer of hope for American farmers whose exports have been affected by trade tensions between the two countries.
Trump noted that global markets experienced fluctuations following the agreement’s announcement, with the Chinese Shanghai Composite Index declining while U.S. soybean futures fell. Asian indices and European futures exhibited mixed results.
The U.S. president asserted that the advanced artificial intelligence chips, “Blackwell,” produced by Nvidia, were not discussed during the meeting, despite his previous comments about potentially easing the company’s exports of this crucial product in the AI race.
For his part, Chinese President Xi Jinping stated that China has achieved a consensus with the United States on economic and trade issues, calling for swift implementation of the agreement and tangible results to ease concerns regarding the economies of both nations and the world. Xi emphasized the importance of avoiding a cycle of retaliatory measures, asserting that trade relations should be the cornerstone of the bilateral relationship.
Both parties agreed that focusing on long-term cooperation serves the interests of both countries, amidst a cautiously optimistic atmosphere regarding the sustainability of this economic breakthrough.
