US President Donald Trump said he had struck a deal to reduce tariffs on China in exchange for Beijing resuming US soybean purchases, keeping rare earths exports flowing and cracking down on the illicit trade of fentanyl.
His remarks after the face-to-face talks with Mr Xi in the South Korean city of Busan, their first since 2019, marked the finale of Mr Trump’s whirlwind Asia trip on which he also touted trade breakthroughs with South Korea, Japan and Southeast Asian nations.
“I thought it was an amazing meeting,” Mr Trump told reporters aboard Air Force One shortly after he departed Busan, adding that tariffs imposed on Chinese imports would be cut to 47% from 57%.
The meeting, which took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, lasted nearly two hours.
Mr Trump shook hands and escorted Mr Xi to his car before the US president was given a red carpet send off at the airport.
Chinese stocks climbed to a decade high and the yuan currency to a near one-year peak against the dollar as investors hoped for an easing of trade tensions that have upended supply chains and rocked global business confidence.
World stock markets from Wall Street to Tokyo have hit record highs in recent days.
Mr Trump repeatedly talked up the prospect of reaching agreement with Mr Xi since US negotiators on Sunday said they had agreed a framework with China that will avoid 100% US tariffs on Chinese goods and achieve a deferral of China’s export curbs on rare earths, a sector it dominates.
However, with both countries increasingly willing to play hardball over areas of economic and geopolitical competition, many questions remain about how long any trade detente may last.
Ahead of the talks, the US president complimented Mr Xi as a “very tough negotiator” as they shook hands.
Minutes before they met the US leader said he had ordered the Pentagon to start nuclear weapons testing on a level with China and Russia.
The trade war reignited this month after China proposed dramatically expanding curbs on exports of rare-earth minerals
“We’ll have a great understanding,” Mr Trump said, predicting a “fantastic relationship for a long period of time”.
Mr Xi acknowledged before the meeting began in earnest that both sides did not always see eye to eye, but should strive to be “partners and friends”.
“China and the US can jointly shoulder our responsibility as major countries and work together to accomplish more great and concrete things for the good of our two countries and the whole world,” said Mr Xi.
Sitting opposite each other, each leader was flanked by senior officials including Secretary of State Marco Rubio, Treasury chief Scott Bessent and Commerce Secretary Howard Lutnick.
Mr Xi’s team, which arrived from Beijing shortly before – the US side was already in South Korea – included Foreign Minister Wang Yi, Commerce Minister Wang Wentao and Vice Premier He Lifeng.
‘Even in five years’
Minutes before meeting the Chinese leader, Mr Trump wrote on Truth Social that “because of other countries testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis”.
Mr Trump added that in terms of nuclear weapons stockpiles, China was a “distant third” behind the United States and Russia “but will be even in 5 years”.
The comments came a day after Russian President Vladimir Putin said Moscow had successfully tested a nuclear-capable, nuclear-powered underwater drone, in defiance of US warnings.
The world’s two top economies’ trade tussle – encompassing everything from rare earths to soybeans and port fees – has rocked markets and gummed up supply chains for months.
Following productive preparatory talks by top officials, Mr Trump said on his way to South Korea that “a lot of problems are going to be solved” in a “great meeting”.
Mr Trump had previously indicated that the agreement would include lowering 20% tariffs on Chinese goods related to fentanyl, which has killed tens of thousands of Americans.
Soybeans, oilseeds and certain grains were a key US export to China, amounting to €12.23 billion last year, US trade data showed
Crowning achievement
The meeting took place on the sidelines of an Asia-Pacific Economic Cooperation (APEC) summit of 21 countries in Gyeongju including the leaders of Japan, Australia and Canada.
It is the final stop on an Asia tour that saw Mr Trump showered with praise and gifts, including a replica of an ancient Korean golden crown.
In Japan, new Prime Minister Sanae Takaichi said she would nominate Mr Trump for the Nobel Peace Prize and gave him a putter and a gold-plated golf ball.
However, Mr Trump’s hopes of a re-run of his 2019 meeting with North Korean leader Kim Jong Un at the Demilitarised Zone frontier appear to have dashed.
Mr Trump said though that they would meet in the “not too distant future” and that he would like to “straighten out” tensions between North and South Korea.
He hailed the military alliance with South Korea as “stronger than ever” and said he had given the green-light for Seoul to build a nuclear powered submarine.