BEIJING (dpa-AFX) - In a major breakthrough in U.S.-China trade dispute, the United States will lower tariffs on Chinese imports and China has agreed to give the U.S. better access to its rare earths.
President Donald Trump announced after his crucial meeting with Chinese President Xi Jinping in the South Korean coastal city of Busan on Thursday that the two economic powers will sign a trade agreement 'pretty soon.'
Speaking to reporters aboard Air Force One after concluding his extensive visit of three Asian countries, Trump said significant progress was made on issues such as trade, rare earths and the flow of fentanyl into the US. He also said he plans to visit China in April next year.
China's Ministry of Commerce on Thursday unveiled the results of economic and trade talks by Chinese and U.S. delegations in Kuala Lumpur.
It said both sides have reached a consensus to resolve 'major trade issues'. China will suspend its 'implementation of relevant export control measures' regarding export of critical minerals and other trade materials critical for advanced manufacturing of IT products, as well as suspend special port fees targeting American ships for a year.
In return, special port fees on Chinese ships docking at U.S. harbors will be waived for the same period.
China has the global monopoly in refining about 90 percent of the world's rare earths, which is critical for U.S. industries.
Xinhua quoted Ministry of Commerce spokesperson as saying that the U.S. will cancel the 10-percent 'fentanyl tariffs' and suspend for an additional year the 24-percent reciprocal tariffs levied on Chinese goods.
The Commerce ministry added that the U.S. has agreed to reduce tariffs on all Chinese goods that was imposed over Beijing's failure to stem the flow of fentanyl into the country.
China will make corresponding adjustments to its countermeasures against U.S. tariffs, it said in a statement.
Both sides confirmed that other reciprocal tariffs on Chinese goods will be frozen for a year.
The U.S. side made positive commitments in areas such as investment, and China will properly resolve issues related to TikTok with the U.S. side, according to the Commerce ministry.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News