U.S. President Donald Trump on Thursday announced a significant easing of trade tensions with China after what he described as “very productive” talks with Chinese President Xi Jinping in South Korea.
Speaking to reporters after the meeting, Trump said Washington would lower tariffs on Chinese imports as both countries moved closer to finalizing a major trade agreement.
“We can sign a trade deal with China pretty soon,” Trump said, calling the discussions a “breakthrough moment” after months of renewed economic friction between the world’s two largest economies.
The meeting, held on the sidelines of Trump’s regional tour, was aimed at resetting relations strained by disputes over tariffs, technology restrictions, and access to critical resources.
Trump also announced that Beijing had agreed to ease restrictions on rare earth mineral exports to the United States, ending what he termed the “rare earths roadblock.” He said the move would provide U.S. industries with greater access to key materials essential for electronics, electric vehicles, and defense systems.
“Beijing will give us better access to rare earths,” Trump said, adding that the decision would strengthen domestic manufacturing and reduce U.S. dependence on Chinese suppliers.
China’s statement following the meeting was more restrained, saying only that both countries had reached “a consensus to resolve major trade issues” and that the talks were “constructive and forward-looking.”
Analysts noted the diplomatic contrast in tone, with Washington emphasizing optimism and Beijing opting for caution, though both sides appeared eager to project progress.
No breakthrough was announced regarding ongoing negotiations over the sale of Chinese-owned social media app TikTok’s U.S. operations, which remain unresolved.
Observers said Xi entered the meeting from a position of economic strength, given China’s steady post-pandemic recovery and expanding global trade influence. Still, both leaders signaled a shared intent to stabilize relations after years of escalating tensions.