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Trump strikes deal with China’s Xi over tariffs and rare earth exports

U.S. president Donald Trump announced on Thursday that he had reached a deal with China to reduce tariffs in exchange for Beijing continuing U.S. soya bean purchases, maintaining rare earths exports and crackingdown on illicit fentanyl trade.

Trump's remarks following the face-toface meeting with Xi, in South Korea city Busan, the first such encounter since 2019, marked a conclusion to his whirlwind Asia tour, during which he also lauded trade successes with South Korea and Japan, as well as Southeast Asian nations.

The meeting, held on the sidelines the Asia-Pacific Economic Cooperation summit (APEC), lasted almost two hours. Trump escorted Xi into his car and shook his hand before giving him a red-carpet send-off at the airport.

Investors hoped that trade tensions would ease, which have disrupted supply chains and weakened global business confidence.

In recent days, the world stock markets have reached record highs from Wall Street to Tokyo.

Trump has repeatedly emphasized the possibility of an agreement with Xi, since U.S. negotiators announced on Sunday that they had reached a framework for avoiding 100% U.S. Tariffs on Chinese products and deferring China's export restrictions on rare earths - a sector in which it is dominant.

Many questions remain as to how long a trade detente will last, with both countries willing to play hardball in areas of geopolitical and economic competition. Trevor Hunnicutt, Michael Martina and David Brunnstrom in Busan; Daphne Psaledakis and David Lawder in Washington; John Geddie, Edmund Klamann, and Lincoln Feast, editors.

(source: Reuters)