Trump-Xi Meeting: US to Cut Tariffs on Chinese Goods to 47%

As announced by Washington and Beijing, the Trump-Xi meeting has taken place. Following the high-level meeting in Busan, South Korea, US President Donald Trump announced that he has reached an agreement with China to lower tariffs on Chinese goods from 57% to 47%. This is a significant concession aimed at de-escalating the long-running trade war between the world's two largest economies. At the start of the talks, Trump expressed optimism, assuring that Washington and Beijing would have a "fantastic relationship" in the long run.

"It is a great honor to meet today with my longtime friend, the honorable and respected President of China. We will talk. I think we have already agreed on many things, and we are going to agree on many more. President Xi is a great leader of a great country. I believe we will have a fantastic relationship for a long time," said the American leader, setting a positive tone for the negotiations.

The deal reached in this optimistic atmosphere involves mutual commitments. In response to the tariff reduction, Beijing has agreed to resume massive purchases of American soybeans, guarantee the uninterrupted export of rare earth metals, in which China holds a dominant position on the global market, and tighten the fight against the illegal trade of fentanyl, a synthetic drug.

The face-to-face meeting between the two leaders, the first since 2019, took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit and lasted nearly two hours. It became the final chord of Trump's extensive Asian tour, during which he also announced progress in the trade sphere with South Korea, Japan, and Southeast Asian nations. "I think this was an amazing meeting," Trump noted to reporters, commenting on the agreements reached.

The tension between the US and China has long had a negative impact on global supply chains and business confidence, so this meeting was awaited with great hope. Before the talks, global stock exchanges from Wall Street to Tokyo had registered record growth in anticipation of a possible "trade truce." However, after Trump's announcements, when the details of the deal became known, volatility arose in the stock markets. Major Asian indices and European futures began to fluctuate, and China's Shanghai Composite Index retreated from its recent 10-year high. Some weakening was also observed in the US soybean futures market.

Despite the positive atmosphere and the agreement reached, many questions remain unanswered. It is unknown how long this trade "détente" will last. Experts note that both countries continue to adopt tough stances in key areas of economic and geopolitical competition. This circumstance creates a serious challenge for establishing long-term and stable relations and casts doubt on the durability of the achieved truce. At the end of the meeting, Trump saw Xi Jinping off with a warm handshake, accompanying him to his car, but the road to resolving global contradictions still seems long.