Trump agrees to halve tariffs on China after Xi’s fentanyl commitment

The trade talks between the Chinese and the U.S. leaders in Busan, South Korea, have concluded with Donald Trump agreeing to halve tariffs on certain Chinese imports — from 20% to 10% — following Xi Jinping's commitment to curb fentanyl shipments to the U.S.

The meeting lasted for one hour and forty minutes, Caliber.Az reports, citing foreign media.

Before the meeting, President Xi said China-US trade and economic teams have reached a basic consensus on resolving the main issues of concern and achieved encouraging progress.

China and the United States should be partners and friends because reality demands it, he added.

Donald Trump, ahead of the meeting, expressed high expectations for his meeting with Xi Jinping. The U.S. president said that if the meeting produced the desired outcome, he would consider reducing the additional tariffs he had previously imposed on imports from China. Trump justified those tariffs by citing China’s alleged role in supplying components used in large-scale fentanyl smuggling into the United States.

However, following the meeting, Trump said he is reducing some tariffs on Chinese imports after securing a commitment from the Chinese leader to take steps to stop the flow of fentanyl.

Speaking to reporters aboard Air Force One after the meeting with Xi, Trump said the 20% tariffs on China related to fentanyl were being reduced to 10% bringing the total amount of duties imposed on Chinese imports from 57% to 47%.

Trump also said the U.S. had reached a 1-year agreement with China that it would not impose dramatic restrictions on rare earth minerals -- materials key for producing computer chips that are needed for everything including smartphones, AI systems and defence technology.

That takes the threat of and additional 100% tariffs on China off the table.

Overall, Trump said the meeting with Xi in South Korea was "amazing," and on a scale of 1 to 10 gave it a 12.

By Khagan Isayev