Summary
President Trump announced a one-year trade deal with China after discussions with Chinese President Xi at the APEC summit in South Korea. The agreement includes lowering some U.S. tariffs and stopping Chinese export controls on rare earths. China will also buy significant amounts of U.S. agricultural products.
Key Facts
- The trade deal is initially set for one year.
- The U.S. will lower a tariff on Chinese goods from 20% to 10%, related to fentanyl flows.
- China will not impose export controls on rare earth minerals.
- Rare earths are essential for manufacturing items like smartphones and fighter jets.
- China agreed to purchase large amounts of U.S. agricultural products, including soybeans.
- The average U.S. tariff on Chinese goods will remain about 47%, while China's average tariff on U.S. goods is around 32%.
- The agreement is intended to lessen tensions in the U.S.-China trade war, which affects the global economy.
- Trump and Xi have not met face-to-face since 2019 before this meeting.
