Trump-Xi meeting: US president says rare earths deal and tariff cut agreed

"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. Xi Jinping has not commented on Thursday'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."

"According to China's commerce ministry, the agreement reached in Kuala Lumpur included a 10% reduction in 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 drug that has caused a surge of deaths among Americans."

"In return, Trump said he would lower fentanyl-linked tariffs from 20% to 10%, thereby lowering overall tariffs from 57% to 47%. Trump had suggested their discussions in the city of Busan could last three or four hours but the men parted after an hour and 40 minutes, with Xi preparing to attend the Apec leadership summit, which begins on Friday in nearby Gyeongju. Nevertheless, Trump described the meeting as a 12 on a scale of one to 10."

Leaders of the United States and China met in South Korea and reached agreements on rare earth exports, fentanyl-related tariffs, and agricultural purchases. Economic and trade teams had previously reached a basic consensus in Kuala Lumpur that created conditions for the meeting. China’s commerce ministry reported a 10% reduction in the US fentanyl tariff and reciprocal suspension of certain export controls by Beijing. Trump said China would work to prevent fentanyl production while he would lower fentanyl-linked tariffs from 20% to 10%, reducing overall tariffs. A rare earths agreement will last one year and be renegotiated annually.

Read at www.theguardian.com