Trump, Xi Reach Deal to Cut Tariffs

President Trump announced “we have a deal” shortly after meeting with Chinese President Xi Jinping Thursday in their first face-to-face since he returned to the White House.

“On the scale of 0 to 10, with 10 being the best, I would say the meeting was a 12,” Trump told reporters on Air Force One after leaving the South Korean air base that hosted the nearly two-hour summit.

“We have a deal. Now, every year we will renegotiate the deal. But I think the deal will go on for a long time.”

Trump said that Xi agreed to pause for a period of one year Beijing’s new export restrictions on products made with rare-earth and critical minerals, which could have impacted the global supply of high-tech magnets, batteries and semiconductors.

The breakthrough averts Trump’s threatened 100% additional tariff on Chinese goods, which would have taken effect on Nov. 1 in protest of the export restrictions, which required companies to seek special permission for shipments.

“There’s no roadblock at all on rare earth,” he said. “It’s a one-year deal that I think will be very routinely extended.”

Trump said Xi also agreed to a renewed crackdown on fentanyl exports and that the US in turn would reduce the 20% fentanyl tariff on Chinese goods to 10%, bringing the average tariff on Chinese goods from 57.6% to 47.6% — slightly lower than the 50% rate currently applied to Brazil and India.

Xi additionally committed to buy “tremendous amounts of soybeans” after halting purchases this year in retaliation for Trump’s fentanyl tariff.

“What can I say? It was an outstanding group of decisions that was made. A lot of decisions were made too — it wasn’t too much left out there,” Trump said, adding that he plans to visit China in April.

“I thought it was an amazing meeting.”

In a subsequent Truth Social post, Trump said: “China also agreed that they will begin the process of purchasing American Energy. In fact, a very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska.”

Trump and Xi warmly greeted each other at the start of the summit, with Trump predicting a “great understanding” to thaw trade tensions.