US announces 10 percent tariff cut on China as Trump, Xi conclude talks

BUSAN: US President Donald Trump announced a 10 percent cut in tariffs on Chinese goods following an extended meeting with Chinese President Xi Jinping in South Korea on Thursday, signalling a new phase in efforts to mend ties between the world’s two largest economies.

The high-stakes meeting, held in Busan, produced several key takeaways. Trump revealed that tariffs on China had been reduced to 47 percent from 57 percent, particularly on goods linked to fentanyl flow resolution. He also said both sides had agreed to cooperate on curbing the spread of the synthetic drug, which has become a major cause of overdose deaths in the United States.

In a wide-ranging discussion, the two leaders also agreed to strengthen collaboration on artificial intelligence and global security. Trump announced that China would make new investments in the US to support AI development, while the two sides also discussed working together on the ongoing conflict in Ukraine.

“We spoke for a long time about Ukraine and came to the conclusion that we will work together on it,” Trump said after the meeting. “President Xi is a great leader of a great country. The meeting was amazing and outstanding. I believe we’re going to have a fantastic relationship for a long time.”

Talks on trade and technology

Trump further disclosed that Washington and Beijing had reached an understanding to move forward with a new trade agreement “very soon.” He said discussions on rare earth minerals had been “completely settled” and that China was in talks with American chipmakers, including Nvidia, to explore future partnerships.

“China and the United States can achieve much more through cooperation,” Xi said during the talks, adding that he was ready to continue working with Trump to maintain stability and mutual growth. He noted that disagreements between the two powers were “normal,” but urged both sides to focus on friendship and respect.

The meeting followed a series of diplomatic exchanges between senior US and Chinese officials on the sidelines of the ASEAN Summit, reflecting a broader attempt to rebuild trust after years of trade friction.

Trump also hinted at plans to visit China in April, while noting that India had been “very good” on the Russian oil issue.

As the talks concluded, Trump departed for Washington aboard Air Force One, while Xi travelled to Gyeongju for the upcoming APEC summit—his first visit to South Korea in over a decade.