Trump drops China tariffs from 57% to 47% after meeting Xi in South Korea

The meeting, which took place on the sidelines of the Asia-Pacific Economic Cooperation (Apec) summit, was the first between the two leaders in six years

The US government slashed its tariffs on China from 57 per cent to 47 per cent shortly after President Donald Trump concluded his meeting with his Chinese counterpart Xi Jinping on Thursday, Associated Press reported.

 

The meeting, which took place on the sidelines of the Asia-Pacific Economic Cooperation (Apec) summit in South Korea's Busan, was the first between the two leaders in six years.

 

Speaking to reporters aboard Air Force One, Trump announced his decision to cut the combined tariff rate to 47 per cent following "successful discussions" with Xi, who pledged to restrict the flow of fentanyl precursor chemicals to the US. 

 

 

The recent announcement signals a possible thaw in the bilateral ties of the two countries, after tensions simmered when reports suggested that Beijing was considering to expand its export controls to nearly all of its products, including rare earth minerals, which are crucial for global technology supply chains. This had prompted Trump to announce an additional 100 per cent tariffs on China, starting November 1.

 

Ahead of his meeting with Xi, Trump threatened a huge hike that would have boosted the tariffs by 100 per cent. However, he told the reporters he did not need to go through with that plan.

Trump-Xi meeting

 

Before he met Xi, Trump expressed optimism and said, "We’re going to have a very successful meeting, I have no doubt", adding that his Chinese counterpart is a "tough negotiator".  The US President also hinted that the two could also sign a "possible" deal after the meeting, as the two have a "great understanding” of each other.

 

During the meeting, Xi told Trump, "Given our different national conditions, we do not always see eye to eye with each other", adding that it is normal for the two leading economies of the world to have "frictions" now and then. 

 

According to a Bloomberg report, the two leaders were expected to finalise the details of a framework agreement, which was negotiated over the weekend in Malaysia. Under the proposed agreement, China was to suspend its rare-earth licensing regime for at least a year, resume its soybean imports, and take actions to limit the production of fentanyl. In return, the US would lower its tariffs and consider offering additional concessions. 

 

During the closed-door meeting that lasted over 90 minutes, Xi lauded Trump's efforts to resolve conflicts and bring peace, especially in Gaza. He also informed Trump that he believed that China's development goes hand in hand with Trump's vision of Make America Great Again (MAGA).

  

Earlier this year, China was hit with renewed tariffs after Trump began his second term in office. Of the 30 per cent duties imposed, 20 per cent were linked to China’s role in producing fentanyl. The tariff situation has been volatile: in April, when Trump announced the “Liberation Day” tariffs, Beijing retaliated, bringing the two countries to the brink of another trade war after the US raised its tariffs on Chinese goods to 145 per cent, which were later revoked after the officials held a meeting in May.