US President Donald Trump said he has struck a deal with Chinese President Xi Jinping to reduce tariffs on Chinese imports in exchange for resumed US soybean purchases. The announcement came shortly after Trump ordered the Department of Defense to immediately resume testing nuclear weapons.
Speaking to reporters aboard Air Force One after departing Busan, South Korea, Trump said tariffs on Chinese imports would be cut to 47 percent from 57 percent. He added that the two leaders would work to keep rare earths exports flowing and crack down on the illicit trade of fentanyl. Trump stated that a trade deal with China could be signed by the end of the day.
The meeting in Busan was the first face-to-face talks between Trump and Xi since 2019. Xi told Trump via a translator that it was normal for the world's two largest economies to have frictions, and that China's development did not contradict Trump's vision of 'Making America Great Again,' according to China's state news agency Xinhua.
Earlier, Trump posted on Truth Social: 'Because of other countries testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis. That process will begin immediately.' This followed Russia's test of a Poseidon nuclear-powered super torpedo and other nuclear drills by President Vladimir Putin.
The trade war had reignited after Beijing proposed expanding curbs on rare-earth mineral exports, prompting Trump to threaten additional 100 percent tariffs on Chinese goods. Analysts view the escalating tensions as a new Cold War between the two economic powers.
