Trump announces rare earth deal, lowers tariffs on China

Trump said the US and China have reached a one-year agreement granting access to rare earth minerals

US President Donald Trump said after meeting Chinese President Xi Jinping in South Korea that the two sides reached a one-year agreement granting access to rare earth minerals, while the United States will lower tariffs on certain Chinese imports. The meeting, which lasted an hour and 40 minutes, marked the first encounter between the two leaders in six years.

Speaking to reporters aboard Air Force One on Thursday, Trump described the talks as “amazing” and said he and Xi “have already agreed to a lot of things.” He explained that the rare earth minerals deal would be renewed annually through fresh negotiations.

Trump said the United States will reduce tariffs on Chinese exports from 57% to 47%. He added that China will resume purchases of American soybeans and will take steps to curb the flow of fentanyl into the United States. The rare earth agreement will remain in place for one year and will be renegotiated annually.

Trump denied that the two leaders discussed exports of Nvidia’s Blackwell artificial intelligence chips. He also announced plans to visit China in April, followed by a reciprocal visit by Xi to the United States, though no date has been set for that trip.

Ahead of the meeting, both leaders struck a conciliatory tone. Trump referred to Xi as “an old friend” and said they share “a very good relationship,” while Xi stressed that China’s economic growth ambitions would not undermine Trump’s vision to “Make America Great Again.”