Trump says rare earths deal and tariff cut agreed after Xi meeting

Donald Trump has described crucial trade talks with the Chinese president in South Korea as “amazing”, saying their dispute over the supply of rare earths had been settled and that he would visit China in April.

- Justin McCurry

Xi Jinping has not commented on yesterday’s discussions but noted that the economic and trade teams from both countries had “reached a basic consensus on addressing our respective major concerns” during recent talks in Kuala Lumpur, according to Chinese state media.

That had “provided the necessary conditions” for their meeting yesterday, he added.

According to China’s commerce ministry, the agreement reached in Kuala Lumpur included a reduction of Trump’s so-called “fentanyl tariff” imposed on Chinese goods, along with reciprocal measures by Beijing to suspend export controls.

After their meeting, the two shook hands and Trump immediately boarded Air Force One to return to Washington. He later told reporters the Chinese leader had agreed to work “very hard” to prevent the production of fentanyl, a synthetic opioid that has caused a surge of deaths among Americans.

In return, Trump said he would lower fentanyl-linked tariffs from 20% to 10%, thereby reducing overall tariffs from 57% to 47%.