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ReutersUS President Donald Trump and Chinese President Xi Jinping talk as they leave after a bilateral meeting US President Donald Trump announced a one-year trade agreement with Chinese President Xi Jinping on the supply of critical rare earth minerals. The deal, announced after their first in-person meeting in six years at the Asia-Pacific Economic Cooperation (APEC) summit in Busan, South Korea, aims to ensure the continued flow of rare earth materials essential for global technology and manufacturing industries.The United States also announced it would reduce tariffs on Chinese imports from 57% to 47%, a decrease of 10 percentage points, signaling a move toward easing trade tensions. This tariff cut is part of a broader effort to stabilize economic relations and is expected to be re-evaluated annuallySpeaking to reporters aboard Air Force One after the summit, Trump described the meeting as “amazing” and rated it “12 out of 10” on a scale where 10 signifies the best outcome. He emphasized that the rare earths agreement was a key aspect settled for the year, with provisions for annual renegotiation.Additionally, the US would reduce fentanyl-related tariffs on China from 20 percent to 10 percent as part of the broader trade cooperation framework. Trump noted that the two leaders reached consensus on several other critical trade issues, including export controls and large Chinese purchases of US soybeans, further easing longstanding tensions.“All the rare earths has been settled, and that's for the world,” Trump said. “China will keep rare earth exports flowing, which is vital for many industries.”Live EventsThe rare earths supply has been a volatile point in US-China relations, especially due to China's dominant position in extraction and processing. Previous restrictions on rare earth exports had raised global concerns over supply chain security for high-tech sectors, renewable energy, and defense applications.Trump praised Xi Jinping as a “very tough negotiator” and called the two countries’ improving relations a friendship for a long time.This landmark one-year agreement follows a preliminary framework pact reached in Kuala Lumpur and sets the stage for enhanced trade cooperation amid fluctuating geopolitical tensions. It reflects a thaw in the protracted tariff battle and a mutual interest in stabilizing critical supply chains.Beijing has not commented on any of this so far.The pact's signing marks a significant step toward addressing the intertwined economic and strategic interests between the world's two largest economies.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onTrump Xi Jinping trade dealDonald TrumpXi Jinpingrare earth mineralChinese importsrare earths agreementtrump xi meetingBeijing (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onTrump Xi Jinping trade dealDonald TrumpXi Jinpingrare earth mineralChinese importsrare earths agreementtrump xi meetingBeijing(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless Explore More Stories123
