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Trump did not provide additional details. A Chinese Commerce Ministry spokesperson said in a translated statement that “both sides reached consensus on issues such as cooperation in fentanyl control,” without elaborating. Trump said the overall tariff rate on Chinese goods will fall to 47% from 57%. The tariff cut addresses “a key Chinese grievance,” said Han Shen Lin, China director at advisory firm The Asia Group, showing that “Beijing’s efforts to curb exports of fentanyl precursors, long unrecognized by Washington, are finally being acknowledged.” Trump and Beijing also confirmed that China agreed to pause recently announced export controls on its valuable rare earths minerals for one year. Those controls were announced on Oct. 9, prompting a furious reply from Trump, who threatened to hike tariffs on China by 100% starting Saturday. The U.S. is dropping that tariff threat, Trump confirmed on Air Force One. He added that he believes that the one-year postponement of the Chinese export controls will be “routinely extended.” But the Chinese Commerce Ministry’s statement says only that Beijing will suspend the measures for a year, and then “study and refine specific plans.” China also made no mention of other export control measures it had imposed earlier in the year, which remain in place. Chinese companies control the majority of the global supply chain for rare earths, which are critical for producing a range of products from semiconductors to missiles. Beijing has ramped up restrictions on exports of critical minerals over the last two years, with a particular focus on limiting their use for military purposes by other countries. “China’s leverage in rare earths and critical minerals processing will continue to surface episodically, effectively capping any escalation in bilateral tensions,” Louise Loo, head of Asia economics at Oxford Economics, said in a note Thursday. Trump also said “tremendous amounts” of U.S. soybeans and other farm products will be purchased by China “starting immediately.”
