We have a deal: US-China signs one-year trade pact as Trump drops tariffs to 47% from 57%
Busan, October 30
US President Donald Trump on Thursday said that Washington has reached a landmark one-year trade pact with China, slashing US tariffs on Chinese imports from 57 per cent to 47 per cent, moments after his much-anticipated meeting with his Chinese counterpart Xi Jinping on the sidelines of the APEC Summit in Busan, South Korea.
Speaking to reporters aboard Air Force One, Trump stated, "We have a deal," referring to the trade pact which will be routinely extended.
"Every year we'll renegotiate the deal, but I think the deal will go on for a long time, long beyond the year. We'll negotiate at the end of the year," he added.
Trump further noted that the 10 per cent tariff reduction on Chinese exports to the US was due to China agreeing to take "strong action" on the fentanyl issue.
"It was 57, now it's 47," the US President said.
"We reduced it by the fentanyl because I believe they are really taking strong action. We've already seen the action on fentanyl, and they're taking very strong action. So reduced to 10 per cent," he added.
Trump further stated that the issue regarding rare earth minerals with China has also been "settled". "All of the rare earth has been settled, and that's for the world," he stated.
Prior to his departure for Washington, the White House described Trump's Asia tour as a "remarkable trip" marked by significant diplomatic and economic milestones.
During his multi-nation visit, Trump secured billions of dollars in new investments, announced the end of a regional conflict, signed multiple trade and mineral agreements, and held a historic meeting with Chinese President Xi Jinping, as stated by the White House-affiliated Rapid Response in a post on X.
The meeting with Xi defined the tone of his week-long diplomatic tour. Before leaving South Korea, Trump bid farewell to South Korean officials and expressed gratitude for the warm hospitality extended during his stay.
His departure followed days of back-to-back engagements that underscored Washington's efforts to strengthen alliances and advance US economic interests in the Indo-Pacific region.
The White House, in a post on social media shortly before takeoff, said, "POTUS boards Air Force One and prepares for the long journey home after a remarkable trip to Asia. This week, the President secured billions in new investment, ended a war, inked multiple trade and minerals deals, met with President Xi, and more. He never stops working for the United States."
Trump's meeting with Chinese President Xi in Busan was widely viewed as the highlight of his visit.
It served as a crucial opportunity for the leaders of the world's two largest economies to ease months of tension over tariffs, technology controls, and rare-earth exports.
The discussions took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Busan, a key port city located around 76 kilometres south of Gyeongju, the main venue of the summit.
As the talks concluded, Trump and Xi were seen shaking hands, signalling a thaw in strained relations and closing a week of high-stakes diplomacy that defined his Asia tour.
— ANI
Reader Comments
Interesting development! While 47% is still high, the reduction shows progress. As an Indian exporter, I'm watching how this affects global supply chains. Maybe we can benefit from redirected trade flows? 🤔
The fentanyl angle is important - drug trafficking affects all nations. Good to see trade negotiations addressing broader security concerns. India should take note of this approach in our own international agreements.
One-year deal seems quite short-term. While it's a step forward, the uncertainty of annual renegotiations might not provide the stability that global markets need. Hope they work toward a more permanent solution.
The rare earth minerals settlement is crucial for technology sectors. As India develops its own rare earth capabilities, we should learn from these negotiations. Strategic minerals are the new oil! 💡
While this deal is positive, I hope India maintains its strategic autonomy. We shouldn't get caught in US-China competition. Our focus should be on strengthening domestic manufacturing and exports. Make in India! 🇮🇳
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.