U.S. And China Land Interim Trade Deal. Here's What It Says
JustinThe U.S. and China landed an interim trade accord on Thursday that offered relief to both countries following six months of turbulent negotiations.
The U.S. and China landed an interim trade accord on Thursday that offered relief to both countries following six months of turbulent negotiations.
The discussions between the U.S. and Chinese governments for much of the year have been punctured by export embargoes, tariff threats, agricultural boycotts, and antagonistic statements. Yet the Thursday meeting in South Korea between President Donald Trump and Chinese leader Xi Jinping displayed signs of progress towards a far-reaching trade deal.
Key tenets of the agreement included:
U.S. reduction of fentanyl tariffs from to 10% from 20%
One-year Chinese pause on rare strict earth export controls
Chinese promise to purchase U.S. soybeans through 2028
U.S. postpones Section 301 investigation into Chinese shipping
Chinese promise to step up a crackdown on fentanyl
Mutual pause on reciprocal port fees
Trump was effusive about Xi, who has led China under an authoritarian system. "President Xi is a great leader of a great country, and I think we're going to have a fantastic relationship for a long period of time," Trump said. Following the meeting, he rated the meeting a 12 out of a scale of zero to 10, with 10 being top marks.
Analysts characterized the deal as a modest one, since it mostly contained temporary steps aimed at ratcheting down tensions rather than permanent policy changes. Trump said the overall tariff rate on China remains 47%, far above historic levels.
Treasury Secretary Scott Bessent said Beijing had committed to purchasing 12 million metric tons of soybeans this year, and double that amount annually through 2028. For several months, the Chinese government halted all its U.S. soybean purchases.
"Our great soybean farmers who the Chinese used as political pawns — that's off the table," Bessent said in a Fox Business interview. Though in the past, the Chinese had made commitments to buy U.S. soybeans that never materialized.
