After a highly anticipated meeting, US President Donald Trump announced on Thursday that tariffs on Chinese goods would be cut from 57% to 47%, following what he described as an “amazing” meeting with Chinese President Xi Jinping at the APEC Summit in South Korea. The talks between the two world leaders ended in under two hours, according to reports.
“I think we’ve already agreed to a lot of things, and will agree to some more right now,” he said, and described Xi as a “very tough negotiator” but also “a great leader of a great country.”
“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,” Xi said.
The remarks from both leaders signal a fast de-escalation of the ongoing tariff friction. Xi and Trump are expected to detail the framework agreement, which would see the Chinese pause restrictions on rare-earths licensing and resume soybean purchases in exchange for lower US tariffs, Bloomberg reported.
According to reports, various topics were taken up for discussion, including semiconductors. Trump said that Beijing would talk to Nvidia and other tech giants about “taking chips.” Trump also said that a few core topics concerning US-China relations were not discussed, including the issue of Taiwan.
Trump is now expected to visit Beijing in April, and Xi is expected to travel to Washington “sometime after that.”
Chinese state media agency Xinhua reported that the two leaders agreed to “strengthen cooperation in energy and trade.” Although the truce between the two superpowers appears to be resolved, the trade brinkmanship has rattled markets and continues to raise concerns about supply chain disruptions and policy frictions.
