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us President donald trump He said he had a “wonderful” meeting with China’s top leader on Thursday Xi Jinping Due to which very important decisions were taken. first officer Sugar Comments on the meeting were less specific and suggested no trade deal had been struck.
Trump meets Xi on the sidelines of Pacific Rim summit south koreaWhere the two leaders agreed to withdraw some of their trade measures and work together to resolve others.
The agenda of the one-hour and 40-minute meeting appeared to not touch upon some perennial problems such as tensions over the self-ruled island of Taiwan.
But Trump said China has agreed to buy large amounts of American agricultural products and ensure a steady supply of rare earth elements used in many industries. Here are some of the highlights of the meeting, based on comments from Trump and US and Chinese officials:
withdrawal of tariff
Trump told reporters on the way home on Air Force One that he had agreed to reduce to 10% the 20% tariff increase imposed because of China’s role in producing fentanyl and the chemicals used to make it. China has confirmed that it will reduce the average tariff on Chinese goods from 57% to 47%.
Both sides agreed to continue working on stemming the illicit flow of drugs into the US
Other tariff hikes remain in place, but for now, both sides have extended a truce on even more tariff increases that began in May when Trump and Xi agreed to allow time to work on a framework to resolve trade tensions.
sales of computer chips to china
Trump said they discussed the US sale of computer chips to China. Trump and former President Joe Biden had banned access to the most advanced chips used for artificial intelligence.
China will talk to Silicon Valley chip maker Nvidia about buying their computer chips, he said.
That won’t include its next-generation Blackwell AI chip, he said, “but a lot of chips.”
“We make the best chips,” Trump told reporters aboard Air Force One. “Nvidia is leading.”
US soybean and other agricultural exports
Trump said the Chinese side has committed to buying “huge quantities” of American soybeans, sorghum and other agricultural products.
The Chinese side did not provide any details, but US Treasury Secretary Scott Besant later said China had agreed to buy 25 million metric tons of US soybeans annually as part of the deal. He said, China will start by purchasing 12 million metric tons of soybean from America between now and January.
Beijing Trump took aim at U.S. agricultural exports shortly after returning to the White House in January, beginning to announce tariff increases. American farmers have been hit hard by cuts in Chinese purchases of soybeans, beef and other products.
“Farmers should immediately go out and buy more land and bigger tractors,” Trump wrote in a post on Truth Social. “I would like to thank President Xi for this!”
The US soybean industry grew in response to Chinese demand in the 1990s, when China began rapid economic growth and turned to foreign producers to help feed its people. Protein-rich soybean is an essential part of the diet.
While China relies on domestic crops for steamed beans and tofu, it needs far more soybeans for oil extraction and animal feed. China is expected to produce 20 million metric tons of soybean in 2024, while importing more than 105 million metric tons.
There were no specific details on other purchase agreements.
Limited relief for US consumers, businesses
Economists said U.S. consumers and businesses should benefit from tariff cuts and the resumption of trade in rare earths and soybeans. Yet trade relations between the two largest economies remain fraught and uncertain.
“Tariff relief is actually good news for consumers — it’s substantial,” said Mary Lovely, senior fellow at the Peterson Institute for International Economics. It also helps US companies that are considering shifting their sourcing to other countries such as Cambodia and Vietnam due to tariffs on Chinese imports.
“This makes it less important to move away from China in some areas,” Lovely said. “On the other hand, here too there was no real lasting peace. In fact most of the difficult issues were simply left hanging in the street.”
While soybean farmers would likely welcome resuming exports to China, “you know if Trump does something that makes them angry, it’s off the table,” he said. “This is good news for farmers. But if I were a farmer, I would probably still be thinking about diversifying.”
no tiktok deal at all
Beijing said it would work with the Trump administration to resolve issues related to TikTok’s ownership.
After Xi’s meeting with Trump, China’s Commerce Ministry said, “China will work with the United States to appropriately resolve TikTok-related issues.”
It did not provide any details on any progress toward ending uncertainty about the fate of the popular video-sharing platform in the US. The Trump administration was signaling that it has finally reached an agreement with Beijing to keep TikTok operating there.
Rare earths, port fees and US energy sales
Trump told reporters that China had agreed not to ban exports of rare earths and the technology and equipment used to process them. Trump had previously threatened to impose 100% import taxes due to China’s rare earth sanctions.
“That hurdle has now been removed,” he said, adding that Beijing had agreed not to enforce its recently announced controls for a year, raising concerns over access to critical minerals used in many industries, including electric vehicles and aircraft.
Similarly, China and the US also said that they will not impose high port charges on each other’s ships.
In his post on Truth Social, Trump said China has agreed to begin buying oil and gas from Alaska, adding that officials will be meeting to see “if such an energy agreement can be worked out.”
China’s opinion on the meeting
Xi said the two countries’ negotiating teams had reached a consensus, according to a report on the meeting distributed by state media, a possible reference to talks held in Malaysia last weekend.
The Chinese leader said the teams should complete follow-up work as soon as possible to deliver concrete results that will provide “peace of mind” to China, the US and the rest of the world.
Xi said the recent ups and downs in the relationship are lessons for the US and China. He said the US and China should engage in positive dialogue on the global stage that reflects their responsibility as major powers to achieve positive outcomes for their countries and the world.
“Both sides should keep a long-term perspective in mind, focusing on the benefits of cooperation rather than falling into a vicious circle of mutual retaliation,” he said, according to the report.
Emphasizing that dialogue is better than confrontation, Xi listed several issues where China and the US can work together, including combating illegal immigration and telecommunications fraud, anti-money laundering efforts, artificial intelligence and infectious diseases.
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Associated Press writers Josh Boak, Chris Megerian, Mark Schiefelbein and other AP journalists contributed to this report.