U.S. President Donald Trump and President Xi Jinping met in South Korea and agreed to reduce U.S. tariffs on China from 57% to 47%, by halving to 10% the rate of tariffs related to trade in fentanyl precursor drugs. The deal hinges on China cracking down on illicit fentanyl exports, resuming U.S. soybean purchases, and keeping rare earth exports flowing. This marks the first face-to-face meeting since 2019.
While Trump called the meeting “amazing,” global markets responded cautiously. Analysts warn this may be only a fragile truce with fundamental trade issues still unresolved. The leaders agreed to future summits, with Trump planning to visit China in April.
Source: Reuters
