President Trump wrapped up his meeting with Chinese President Xi Jinping on Thursday, highlighting agreements regarding tariffs, rare earth exports, and soybean purchases, following a temporary ceasefire on crucial trade issues.
This meeting, marking the first direct conversation between Trump and Xi in six years, took place against a backdrop of economic strain over trade, coinciding with Trump’s announcement about the U.S. resuming nuclear testing.
Here are five agreements reached during their discussions in Korea.
US Reduces Tariffs on China
A key outcome from the meeting was Trump’s decision to lower U.S. tariffs on Chinese goods from 57% to 47%. On his flight back to Washington, he informed reporters that this 10% reduction stemmed from an agreement with China to decrease fentanyl tariffs from 20% to 10%.
Trump mentioned that these tariff cuts would take effect “immediately.”
Prior to the meeting, he had threatened to increase tariffs on China due to concerns over export controls.
The recent announcement regarding the lowered fentanyl tariffs is significant, as Trump and his Republican supporters are keen on combating the fentanyl crisis in the U.S. He expressed optimism that Xi would take serious measures to curb the illegal trafficking of fentanyl in the future.
“On fentanyl, we agreed he would work very hard to stop the flow,” Trump told reporters. “It’s a complex issue because it has various uses, including in anesthesia. But he’s going to approach it with great seriousness.”
“I think we’ll see some substantial action,” he added.
China Delays Rare Earth Regulations for One Year
Leading up to the meeting, tensions were high due to China’s decision to strengthen export controls on crucial minerals and rare earth materials.
Trump announced a significant win when he stated that the Chinese government had agreed to postpone these changes for a year.
On Truth Social, he mentioned that China will “continue to allow the flow of rare earths, critical minerals, and magnets, etc.”
While existing export restrictions will likely remain, the delay might provide the U.S. with some leeway to fortify its own supply chains.
Rare earth materials are vital for numerous products, such as cars, semiconductors, and electronic devices.
Currently, China is responsible for nearly 70% of global rare earth mining, and earlier this month, the Chinese government introduced stricter restrictions on foreign companies’ exports of products with even minor amounts of critical minerals mined in China.
In response, Trump sought agreements with Australia, Japan, Malaysia, Thailand, and Cambodia to enhance collaboration in mining and processing these essential materials.
Trump’s Nuclear Testing Announcement
About an hour before his meeting with Xi, Trump made headlines with a post on Truth Social, announcing he would instruct the Pentagon to start testing U.S. nuclear arms at a level comparable to China and Russia.
“The U.S. has more nuclear weapons than any other country,” Trump wrote. “This was achieved during my administration, including a total renewal of existing weapons. I hesitated to do so because of the immense destructive potential, but it was unavoidable! Russia ranks second, and China is third, but they’ll catch up within five years.”
During his meeting with Xi, Trump initially sidestepped reporters’ inquiries about the announcement but later explained that it “pertains to other nations” when asked if it related to Xi.
“Everything feels like a nuclear test. We possess more nuclear arms than anyone else,” he remarked.
“We aren’t testing anymore; we halted that years ago, but other nations are, so I believe it’s time for us to re-engage,” he added.
The exact nature of the testing Trump referred to remains unclear. Since the 1990s, no nation other than North Korea has held a nuclear test, while Russia has conducted tests not involving actual bombs. Meanwhile, North Korea’s Kim Jong-un recently tested a missile capable of carrying a nuclear payload.
Soybean Purchases Benefit U.S. Farmers
U.S. soybean farmers were hopeful about the outcomes of the talks between Trump and Xi.
Post-meeting, Trump revealed that Xi had approved purchases of soybeans, sorghum, and other agricultural products.
“We see eye to eye on many issues,” Trump stated during his flight back from the meeting. “Significant quantities of soybeans and various agricultural goods will be purchased immediately.”
Treasury Secretary Scott Bessent shared on Fox Business Network that China agreed to purchase 12 million tons of soybeans for the remainder of this year and 25 million tons annually for the next three years.
This news brought relief to farmers and legislators from agricultural states who have faced challenges due to Trump’s trade policies.
Soybeans were the largest agricultural export from the U.S. in 2024, according to USDA data. Previously, about half of those exports went to China, but this figure dropped to nothing earlier this year when China halted imports from the U.S., opting for sources like Argentina instead.
Topics Not Addressed: Taiwan, Russian Oil, Blackwell Chips
Despite covering a range of topics during the hour-long meeting, several important issues were left off the agenda.
Trump informed reporters that matters concerning Taiwan, Russian oil, and Nvidia’s Blackwell semiconductors were not brought up with Xi.
Trump noted that the war in Ukraine was a significant topic, but Taiwan “never came up” for discussion.
“We will strive to collaborate and find solutions,” he said, emphasizing that both sides are invested in the negotiations, even amid conflicts.
Addressing China’s history of purchasing Russian oil, Trump stated that he “didn’t delve into oil” in the talks, focusing instead on resolving the war.
“He’s been procuring oil from Russia for a long time. Russia plays a significant role for China,” he remarked.
The sale of Nvidia’s Blackwell chips to China also didn’t surface in discussions.
“We didn’t bring up Blackwell; that was announced just yesterday,” Trump noted.
However, he mentioned that the broader issue of chips has been discussed with Xi.
“[China is] planning to engage in discussions about acquiring chips from Nvidia and others,” he said.
