Following his highly anticipated meeting with Chinese President Xi Jinping in South Korea on Thursday, US President Donald Trump described the talks as “amazing,” rating them “a 12 out of 10.” Trump highlighted a series of key outcomes, including trade and strategic cooperation measures, though he noted that not all issues were covered.
Key takeaways from the Trump-Xi meeting
President Trump announced that US tariffs on Chinese goods will be reduced to 47% from the current 57%, describing the outcome as part of a one-year agreement expected to be extended. He also confirmed that all rare earth disputes between the two nations have been settled, removing what he called “roadblocks” to exports. A US official later added that “China will keep exports of rare earths flowing.”
Trump said China will immediately resume purchases of US soybeans and agreed to intensify efforts to combat the fentanyl crisis, including reducing tariffs related to the substance. He also revealed that both sides discussed semiconductor cooperation, with Chinese representatives expected to engage with Nvidia and other chipmakers—though he clarified that Nvidia’s Blackwell chips were not part of the discussion.
On geopolitical matters, Trump stated that he and Xi agreed to “work together on Ukraine to get something done,” while confirming that the Taiwan issue was not discussed. The US president further remarked that given recent nuclear tests by other nations, it would be “appropriate” for the US to conduct its own.
Trump announced plans to visit China in April, followed by a reciprocal visit from President Xi to the United States later in the year.
Market reaction
Financial markets reacted cautiously to the meeting’s outcome. The US Dollar Index (DXY) fell back below 99.00, reflecting investor disappointment over the lack of a comprehensive deal. Meanwhile, AUD/USD held firm, consolidating gains just below the 0.6600 mark at the time of writing.
