Trump-Xi Meeting: US Reduces Tariffs On China After 'Successful' Talks In South Korea

Busan, South Korea: Donald Trump and Xi Jinping agreed on Thursday to ease the trade war between China and the United States that roiled global markets, with Washington cutting some tariffs and Beijing committing to keep supplies of critical rare earths flowing.

Trump hailed his first meeting with Xi in six years as a "great success", while the Chinese leader said the two reached an "important consensus" towards solving an economic dispute that threw international supply chains into chaos.

"I thought it was an amazing meeting," Trump said after the talks in Busan, South Korea, praising Xi as a "tremendous leader of a very powerful country" and saying he would visit China in April. Trump added that the deal included China immediately buying "tremendous amounts of soybeans and other farm products", a key issue for Trump's support in farm country and a point of leverage for Beijing.

The US leader said the talks yielded an extendable one-year deal on China's supply of crucial rare earths, materials that are essential for sophisticated electronic components across a range of industries. Beijing's commerce ministry also confirmed it would suspend for one year certain export restrictions, including on rare earth materials, a sector where China is hugely dominant.

"All the rare earths has been settled, and that's for the world," Trump told reporters aboard Air Force One. Xi said a "consensus" had been reached and urged "follow-up work as soon as possible" to conclude an agreement.

Trump said the Chinese leader had also agreed to "work very hard to stop the flow" of deadly opioid fentanyl, a trade in which Washington has accused Beijing of being complicit. "I put a 20-percent tariff on China because of the fentanyl coming in... and based on his statements today I am going to reduce that by 10 percent," Trump said.

'Partners and friends'

Neither leader made any public comments immediately after the talks, which lasted around an hour and 40 minutes. Trump headed straight to Air Force One, waving and pumping his fist as he boarded the plane. The jet took off minutes later. Xi was seen getting into his limousine outside the closed-door meeting. Xi acknowledged before the meeting began in earnest that both sides did not always see eye to eye, but should strive to be "partners and friends".

"China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world," said Xi. Sitting opposite each other, each leader was flanked by senior officials including Secretary of State Marco Rubio, Treasury chief Scott Bessent and Commerce Secretary Howard Lutnick.

Xi's team, which arrived from Beijing shortly before -- the US side was already in South Korea -- included Foreign Minister Wang Yi, Commerce Minister Wang Wentao and Vice Premier He Lifeng. (AFP)

US President Donald Trump told reporters aboard Air Force One that the US would lower tariffs implemented earlier this year as punishment on China for its selling of chemicals used to make fentanyl from 20% to 10%. That brings the total combined tariff rate on China down from 57% to 47%. “I guess on the scale from 0 to 10, with ten being the best, I would say the meeting was a 12,” Trump said. “I think it was a 12.” Read More...

US President Donald Trump said Thursday he had been too "busy" to meet North Korean leader Kim Jong Un during his visit this week to South Korea, but added he could return.

"I had a great relationship with Kim Jong Un," Trump told reporters on Air Force One.

US President Donald Trump described his meeting with China's leader Xi Jinping was a "great success" and said he would head to China in April for new talks. "I'll be going to China in April and he'll be coming here sometime after that, whether it's in Florida, Palm Beach or Washington, DC," Trump told reporters on Air Force One.

"A lot of things we brought to finalisation" at Thursday's talks in Busan, South Korea, added Trump, praising Xi as a "tremendous leader of a very powerful country".

He said that Taiwan was not discussed in his meeting with Jinping. Taiwan "never came up. That was not discussed actually," Trump said.

Crunch talks between US President Donald Trump and China's Xi Jinping focused on their trade war wrapped up in under two hours Thursday with no immediate public comment from either leader on whether progress was made.

Trump headed straight to Air Force One in Busan, South Korea after the first face-to-face meeting in six years with Xi, waving and pumping his first as he boarded the plane. The jet took off minutes later.

Xi was seen boarding his limousine outside the closed-door meeting, which lasted around an hour and 40 minutes. Ahead of the talks, Trump complimented a smiling Xi as a "very tough negotiator" as they shook hands. Minutes before they met the US leader said he has ordered the Pentagon to start nuclear weapons testing on a level with China and Russia.

"We'll have a great understanding," Trump said, predicting a "fantastic relationship for a long period of time". Xi acknowledged before the meeting began in earnest that both sides did not always see eye to eye, but should strive to be "partners and friends".

"China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world," said Xi. Sitting opposite each other each leader was flanked by senior officials including Secretary of State Marco Rubio, Treasury chief Scott Bessent and Commerce Secretary Howard Lutnick.

Xi's team, which arrived from Beijing shortly before -- the US side was already in South Korea -- included Foreign Minister Wang Yi, Commerce Minister Wang Wentao and Vice Premier He Lifeng. The US leader's latest missive on nuclear weapons testing broadened the stakes for his talks with Xi. (AFP)

The meeting between US President Donald Trump and Chinese leader Xi Jinping in South Korea has concluded. The talks took place behind closed doors. Trump was scheduled to depart South Korea back to Washington at 12:55 pm local time (9:25 am India time), according to the White House schedule.

US President Donald Trump and Chinese President Xi Jinping held talks at the Gimhae Air Base, located next to the Gimhae International Airport in Busan, today. Here is the conversation between the two leaders before the meeting began behind closed doors.

As the meeting began, Trump said: "Thank you very much, it's a great honour to be with a friend of mine, really for a very long time now if you think about it, the very, very distinguished and respected President of China. And we will be having some discussions. I think we've already agreed to a lot of things, and we'll agree to some more right now. But President Xi is a great leader of a great country, and I think we're going to have a fantastic relationship for a long period of time. And it's an honour to have you with us. Thank you very much."

Xi Jinping responded: [FROM TRANSLATOR] "President Trump, it is a great pleasure for me, as well, to meet you. And it feels very warm seeing you again because it's been many years. Since your re-election, we have spoken on the phone three times, exchanged several letters, and stayed in close contact."

Xi: "Given our different national conditions, we do not always see eye-to-eye with each other. And it is normal for the two leading economies of the world to have frictions now and then. And in the face of winds, waves, and challenges, you and I, at the helm of China-US relations, should stay the right course and ensure the steady sailing forward of the giant ship of China-US relations. I always believe that China's development goes hand-in-hand with your vision to make America great again."

Xi: "Our two countries are fully capable to help each other succeed and prosper together. Over the years, I have stated in public many times that China and the United States should be partners and friends. This is what history has taught us and what reality demands."

Xi: "A few days ago, in a latest round of consultation, our two economic and trade teams reached basic consensus on addressing our respective major concerns and made encouraging progress. This provided the necessary conditions for our meeting today."

Xi: "Mr. President, I am ready to continue working with you to build a solid foundation for China-US relations and create a sound atmosphere for the development of both countries. Mr. President, you care a lot about world peace, and you are very enthusiastic about settling various regional hotspot issues."

Xi: "I appreciate your great contribution to the recent conclusion of the Gaza ceasefire agreement. During your visit to Malaysia, you witnessed the signing of the Joint Declaration on Peace along the Cambodia-Thailand border, to which you had provided input. China has been helping in our own way Cambodia and Thailand properly settle their border disputes, and we have also been promoting peace talks to resolve other hotspot issues."

Xi: "The world today is confronted with many tough problems. China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world. I look forward to exchanging views with you on questions important for our two countries and the world. Thank you."

Trump: "Thank you. Thank you very much. It's great to have you all. Thank you very much."

The talks between Donald Trump and Xi Jinping are ongoing behind closed doors. Today is Trump's final day of his Asia visit and he is scheduled to depart South Korea back to Washington at 12:55 pm local time (9:25 am India time), according to the White House schedule.

The meeting between US President Donald Trump and Chinese leader Xi Jinping is underway in South Korea in a bid by the two largest economies to stabilise ties after months of turmoil over trade.

The meeting between Trump and Xi is taking place inside the Air Force base at Gimhae International Airport, also known as Busan Airport, located on the western end of Busan, the second-largest city in South Korea. It is both a military and civilian airport and has also been part of joint exercises between the South Korean military and US Air Force.

Chinese President Xi Jinping on Thursday told US counterpart Donald Trump that while the two countries did not always see eye to eye, they should strive to be "partners and friends".

"We have not always seen eye-to-eye and it's normal," Xi said to Trump, after saying it was a pleasure to meet him. "China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world," the Chinese leader said as talks kicked off in South Korea's Busan.

Diplomatic styles are clashing today as US President Donald Trump meets Chinese leader Xi Jinping in South Korea to seek a trade deal between the world's two largest economies.

Trump has hyped up the chances of an agreement, while Xi has been characteristically cagey on those prospects. Here's what to expect as the two leaders meet for the first time since 2019:

Styles clash

Real estate mogul Trump has for weeks played up the chances of a grand deal with Xi, but he will face off with a lifelong Communist Party bureaucrat. "Trump is personal and improvisational. Xi is the opposite," said Ryan Hass, senior fellow at the Brookings Institution. "Trump relishes making deals. Xi concentrates on advancing long-term strategy," he said, adding "neither leader sees value for himself or his country in an unsuccessful meeting".

Long-time friends

The US president has consistently touted his personal connection with Xi, calling him a "friend" whom he "respects". Xi has been less effusive but spent time with Trump at his Mar-a-Lago resort in 2017 -- where he praised Trump's granddaughter's Chinese -- and hosted the US president for a state visit to Beijing the same year.

Rebuilding their personal rapport could prove critical in stabilising combustible ties between the countries. Their relationship "is probably the best thing going in US-China relations right now", according to Daniel Kritenbrink, the former top US diplomat for East Asia.

Managing expectations

Relations have soured in the six years since Xi and Trump last met, with deep ruptures on trade, technology, and Taiwan. While Trump said on Wednesday he expects a "great meeting" with his Chinese counterpart, stabilisation is likely to be the top priority, according to Kritenbrink. Shao Yuqun, a senior research fellow at the Shanghai Institutes for International Studies, said the meeting is unlikely to be groundbreaking "due to the many structural problems in the bilateral relationship".

Even if Trump and Xi appear all smiles in South Korea, "it is very likely that the bilateral relationship will further deteriorate after the summit", she said at a recent event on China-US relations in Shanghai. Their last meeting in 2019 ended with a tentative trade truce, but the agreement quickly unravelled when Covid-19 rocked the global economy.

On the table

What began in Trump's first term as US gripes over bilateral trade imbalances has morphed into a broad economic and strategic showdown. Trump has said he wants China to buy more US soybeans after the country halted all purchases, which totalled $12.6 billion in 2024. Securing US access to Chinese rare earth minerals is a top priority, as China's export controls on the critical elements could throttle US technology and military sectors.

Eyes will also be on the expected lowering of Trump's fentanyl-based tariffs, any alleviation of US restrictions on high-end semiconductor exports, the transfer of TikTok to US ownership, and removing the port fees each side has levied on the other's ships. But Taiwan remains the "most important" issue in the relationship, according to Wu Xinbo at Fudan University's Institute of International Studies.

The self-ruled island, claimed by China and reliant on arms sales from the US for its defence, is "the only issue that will bring our two countries to a head-on conflict", Wu said. Trump did not rule out Taiwan coming up in talks, saying Xi "might want to talk about it".

Photo op?

Details of the format for the meeting have been scant. While Trump relishes engaging with the press and adlibbing his way through speeches, Xi favours formal meetings and delivering scripted remarks at major events. Xi held a joint press conference with Trump in 2017. (AFP)

Chinese leader Xi Jinping says US, China 'should be partners and friends' as he meets Trump. "China, US must 'jointly shoulder' responsibility as great powers," Xi says.

US President Donald Trump said Thursday he expected a "very successful meeting" with "tough negotiator" Xi Jinping as they met in the South Korean city of Busan. Xi told Trump it was "great to see" him ahead of talks expected to hash out a truce in the two countries' blistering trade war.