Trump Cuts China Tariffs from 57% to 47% After Xi Meeting
The US government reduced its tariffs on China from 57 percent to 47 percent soon after President Donald Trump finished his meeting with Chinese counterpart Xi Jinping on Thursday, according to a report. The meeting, held on the sidelines of the Asia-Pacific Economic Cooperation summit in Busan, South Korea, marked the first encounter between the two leaders in six years. While addressing, Trump revealed his choice to reduce the combined tariff rate to 47 percent after “successful discussions” with Xi, who committed to limiting the flow of fentanyl precursor chemicals to the United States.
The recent announcement indicates a potential warming in the bilateral relations between the two nations, following a period of heightened tensions sparked by reports that Beijing might extend its export controls to encompass nearly all of its products, including rare earth minerals, essential for global technology supply chains. This led Trump to declare an extra 100 per cent tariffs on China, effective November 1. Ahead of his meeting with Xi, Trump issued a threat of a significant increase that would have raised the tariffs by 100 per cent. However, he informed the reporters that he did not need to proceed with that plan.
Prior to his meeting with Xi, Trump conveyed a sense of optimism, stating, “We’re going to have a very successful meeting, I have no doubt,” and remarked that his Chinese counterpart is a “tough negotiator”. The US President suggested that the two might sign a “possible” deal following their meeting, noting that they have a “great understanding” of one another. In the course of the meeting, Xi conveyed to Trump, “Given our different national conditions, we do not always see eye to eye with each other,” further noting that it is typical for the two foremost economies globally to experience “frictions” from time to time. A report indicates that the two leaders were anticipated to finalize the specifics 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 exchange, the US would reduce its tariffs and contemplate providing further concessions. In a closed-door meeting that extended beyond 90 minutes, Xi praised Trump’s endeavors to address conflicts and foster peace, particularly in Gaza. He also informed Trump that he believed that China’s development aligns with Trump’s vision of Make America Great Again. Earlier this year, China faced renewed tariffs following Trump’s commencement of his second term in office. Of the 30 percent duties imposed, 20 percent were connected to China’s involvement in the production of 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.
