Donald Trump says rare earths dispute ‘settled’ after Xi Jinping meeting in South Korea – live updates
In case you’re just joining us, here’s a rundown on what happened at the high-stakes talks between Donald Trump and Xi Jinping in South Korea.Trump said afterwards that Washington’s dispute with Beijing over the supply of rare earths had been settled, China would resume buying US soybeans and Washington would reduce its tariffs on China.Trump shook hands with Xi after their talks and boarded Air Force One to return to Washington, saying onboard that the meeting had been a “great success”.He told reporters the Chinese leader had agreed to work “very hard” to prevent the production of the synthetic opioid fentanyl – blamed for many American deaths – and in exchange the US would reduce fentanyl-linked tariffs from 20% to 10%, lowering the overall tariff burden from 57% to 47%.Trump also said he would visit China in April and that Xi would come to the US some time afterwards.In key developments:
Xi said after the meeting that he and Trump had reached “consensus” on trade issues, Chinese state media reported. Xi said both sides should “finalise follow-up work as soon as possible, maintain and implement the consensus and provide tangible results to set minds at ease about the economies of China, the United States and the world”.
Trump said they had agreed to work together on Ukraine, adding that the war “came up very strongly” as an issue. “We talked about it for a long time, and we’re both going to work together to see if we can get something.”
Taiwan was not discussed at the meeting, Trump said. Earlier, both leaders ignored a question about the self-governing democracy, amid concern in Taipei that Trump may be willing to make concessions to Xi.
Before the meeting at Gimhae airbase in Busan, South Korea – their first face-to-face meeting in six years – Trump and Xi shook hands in front of their countries’ flags and the US president said: “We’re going to have a very successful meeting.” He added: “He’s a tough negotiator – that’s not good,” before patting the Chinese leader on the back.
Trump had suggested before the meeting – at which their delegations faced each other across a negotiating table – that it could last three or four hours. The two leaders parted after one hour and 40 minutes.
Xi said China and the US should “stay on the right course” and “be partners and friends” and should “work together to accomplish more great and concrete things for the good of our two countries and the whole world”.
The optimism in Busan was in stark contrast to the recent exchanges of aggressive rhetoric over trade that had threatened to set the US and Chinese on an economic collision course, with potentially disastrous consequences globally. China’s yuan retreated from a near one-year high against the dollar on Thursday after the meeting met expectations but gave investors few new reasons for trade optimism.
Minutes before meeting Xi, Trump said in a social media post that he had ordered the Pentagon to start nuclear weapons testingat the same level of China and Russia. He did not respond to a reporter’s question about the decision as he and Xi began their summit.With Justin McCurry and agencies
Donald Trump has used his Truth Social platform to declare the trade tensions with China are “very close to being resolved” as he urges US farmers to go out and buy “more land and bigger tractors” as Beijing ends its soya bean embargo.The US exports about £18bn worth of soya bean a year, half of which goes to China, but China stopped buying the product leaving Trump contemplating a multi-billion dollar bailout for farmers.Trump said on Truth Social:
I had a truly great meeting with President Xi of China. There is enormous respect between our two Countries, and that will only be enhanced with what just took place.
We agreed on many things, with others, even of high importance, being very close to resolved. I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products.
Our Farmers will be very happy! In fact, as I said once before during my first Administration, Farmers should immediately go out and buy more land and larger tractors.
The deal covers Fentanyl, rare earths and critical minerals such as refined lithium used in electric vehicle car batteries – a sector in which China dominates the world.China has also agreed to liberalise the sale of magnets used in everything from dishwasher doors to car window openings, he said.It will also buy oil and gas from Alaska, Trump added.Donald Trump had first laid out his intention to pursue nuclear arms control efforts in February, saying he wanted to begin discussions with both Vladimir Putin and Xi Jinping about imposing limits on their arsenals, reports Reuters.Most major nuclear powers except North Korea stopped explosive nuclear testing in the 1990s. North Korea conducted its last nuclear test in 2017. Russia’s last confirmed test was in 1990, followed by the last US test in 1992, and by China’s in 1996.The reaction to Donald Trump’s announcement on nuclear testing was swift in the US also.Representative Dina Titus, a Democrat from Nevada, said on X:
I’ll be introducing legislation to put a stop to this.
Daryl Kimball, director of the Arms Control Association, said it would take the US at least 36 months to resume contained nuclear tests underground at the former test site in Nevada. Kimball said on X:
Trump is misinformed and out of touch. The US has no technical, military, or political reason to resume nuclear explosive testing for the first time since 1992.
Apart from providing technical data, a US test would be seen in Russia and China as a deliberate assertion of Washington’s strategic power. Russian president Vladimir Putin has repeatedly said that Russia will test if the US does.In August, Trump said he had discussed nuclear arms control with Putin and wanted China to get involved. Beijing responded by saying it was “unreasonable and unrealistic” to ask the country to join in nuclear disarmament negotiations with the two countries, since its arsenal was much smaller.Reuters has some reaction to Donald Trump’s post on Truth Social about the US defence department to immediately begin nuclear testing on a par with Russia and China’s testing (see 1.49am GMT)A senior Russian lawmaker said Trump’s decision would herald a new era of unpredictability and open confrontation, state news agency RIA reported, while China’s foreign ministry called for the US to abide by its commitment to a moratorium on nuclear testing and uphold the global strategic balance and stability.It was not immediately clear whether Trump was referring to nuclear-explosive testing, which would be carried out by the National Nuclear Security Administration (NNSA), or flight testing of nuclear-capable missiles. No nuclear power, other than North Korea, has carried out explosive testing in more than 25 years.Russian senator Vladimir Dzhabarov said on Thursday that US president Donald Trump should negotiate with Russia, rather than imposing sanctions on it, state news agency RIA cited him as saying.US president Donald Trump said on Thursday he has given South Korea approval to build a nuclear-powered submarine, a dramatic move that would admit Seoul to a small club of nations possessing such vessels.The submarine will be built in a Philadelphia shipyard, where South Korean firms have increased investment, Trump wrote on social media.Trump wrote on his Truth Social platform:I have given them approval to build a Nuclear Powered Submarine, rather than the old fashioned, and far less nimble, diesel powered Submarines that they have now.The US president, who met South Korean president Lee Jae Myung and other regional leaders during his visit, also said Seoul had agreed to buy vast quantities of US oil and gas.Trump and Lee finalised details of a fraught trade deal at a summit in South Korea on Wednesday. Lee had also been seeking US permission for South Korea to reprocess nuclear fuel.However, South Korea’s industry ministry said its officials had not been involved in any detailed discussions about building the submarines in Philadelphia.While South Korea has a sophisticated shipbuilding industry, Trump did not spell out where the propulsion technology would come from for a nuclear-powered submarine, which only a handful of countries currently possess.One opposition lawmaker said on Thursday the Philadelphia shipyard does not have facilities to build submarines, reports Reuters.Asked about Trump’s submarine announcement, Hanwha Ocean, which owns the shipyard with another Hanwha affiliate, said it was ready to cooperate with both countries and provide support with advanced technology, but did not mention specifics.Defence minister Ahn Gyu-back told lawmakers that plans called for South Korea to build its own submarins and modular reactors, and receive a supply of enriched uranium fuel from the US.US president Donald Trump said on Thursday that China agreed to begin the process of purchasing US energy.Trump said in a Truth Social post:
China also agreed that they will begin the process of purchasing American Energy. In fact, a very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska. Chris Wright, Doug Burgum, and our respective Energy teams will be meeting to see if such an Energy Deal can be worked out.
Chinese state media reported shortly after the meeting that the US and China had reached a “consensus” on trade, but the language was a little vague.We’ve now had more information which confirms the consensus Xi referred to in the meeting was actually developed by the US and China trade negotiation teams which met last Sunday in Kuala Lumpur. After that meeting we were told they had developed a “framework” for trade deals, including the forthcoming sale of TikTok.A short time ago, China’s commerce ministry told reporters that consensus included:
The US will remove the 10% fentanyl tariff on goods from mainland China, Hong Kong and Macao, and will extend its suspension of a 24% equitable tariff for another year. In return China will “adjust its countermeasures against the aforementioned US tariffs accordingly”. Both sides also agreed to extend certain tariff exclusions.
The US will suspend its 50% penetration rule on export controls, and in return China will suspend its own export control measures – understood to be its ban on sales of rare earths to foreign countries for suspected dual-use purposes.
The US will suspend for one year its Section 301 (harmful trade practises) investigations against China’s maritime, logistics, and shipbuilding industries for one year. In return China will suspend its related countermeasures.
The ministry said the two sides also reached agreement on issues including fentanyl control, the expansion of agricultural trade, and “handling individual cases involving relevant companies”, which could refer to trade blacklists or investigations against US or American firms based in the other country.“Both sides further affirmed the outcomes of the Madrid trade consultations, with the US side making positive commitments in areas such as investment, and China agreeing to work with the US to properly resolve issues related to TikTok.”Additional research by Lillian YangChina’s defence ministry has said Beijing maintains an open attitude towards developing military relations with the US.Zhang Xiaogang, a spokesperson for the defence ministry, told a press briefing that China hopes the US will work with them to jointly build equal, just, peaceful and stable military ties.Oil prices have fallen slightly as investors digest the new trade deal between Trump and Xi.The two world leaders met in South Korea this morning, with Trump agreeing to reduce tariffs on China from 57% to 47% in a one-year deal, in exchange for Beijing resuming purchases of US soybeans, the continuation of rare earth exports and a crackdown on the trade of fentanyl.Brent crude futures dropped by 0.31% to $64.72 a barrel this morning, while US West Texas Intermediate crude futures dropped by 0.33% to $60.28.The drops suggest that some investors are sceptical that the new agreement marks an end to the trade war. But president Trump has said his discussions with Xi were “fantastic”, and emphasised their “great relationship”.You can follow more market reaction to the meeting in our business live blog:Earlier we reported that Donald Trump said he would visit China next year.A Chinese foreign ministry spokesperson has now confirmed that, saying the trip has been scheduled for April.In case you’re just joining us, here’s a rundown on what happened at the high-stakes talks between Donald Trump and Xi Jinping in South Korea.Trump said afterwards that Washington’s dispute with Beijing over the supply of rare earths had been settled, China would resume buying US soybeans and Washington would reduce its tariffs on China.Trump shook hands with Xi after their talks and boarded Air Force One to return to Washington, saying onboard that the meeting had been a “great success”.He told reporters the Chinese leader had agreed to work “very hard” to prevent the production of the synthetic opioid fentanyl – blamed for many American deaths – and in exchange the US would reduce fentanyl-linked tariffs from 20% to 10%, lowering the overall tariff burden from 57% to 47%.Trump also said he would visit China in April and that Xi would come to the US some time afterwards.In key developments:
Xi said after the meeting that he and Trump had reached “consensus” on trade issues, Chinese state media reported. Xi said both sides should “finalise follow-up work as soon as possible, maintain and implement the consensus and provide tangible results to set minds at ease about the economies of China, the United States and the world”.
Trump said they had agreed to work together on Ukraine, adding that the war “came up very strongly” as an issue. “We talked about it for a long time, and we’re both going to work together to see if we can get something.”
Taiwan was not discussed at the meeting, Trump said. Earlier, both leaders ignored a question about the self-governing democracy, amid concern in Taipei that Trump may be willing to make concessions to Xi.
Before the meeting at Gimhae airbase in Busan, South Korea – their first face-to-face meeting in six years – Trump and Xi shook hands in front of their countries’ flags and the US president said: “We’re going to have a very successful meeting.” He added: “He’s a tough negotiator – that’s not good,” before patting the Chinese leader on the back.
Trump had suggested before the meeting – at which their delegations faced each other across a negotiating table – that it could last three or four hours. The two leaders parted after one hour and 40 minutes.
Xi said China and the US should “stay on the right course” and “be partners and friends” and should “work together to accomplish more great and concrete things for the good of our two countries and the whole world”.
The optimism in Busan was in stark contrast to the recent exchanges of aggressive rhetoric over trade that had threatened to set the US and Chinese on an economic collision course, with potentially disastrous consequences globally. China’s yuan retreated from a near one-year high against the dollar on Thursday after the meeting met expectations but gave investors few new reasons for trade optimism.
Minutes before meeting Xi, Trump said in a social media post that he had ordered the Pentagon to start nuclear weapons testingat the same level of China and Russia. He did not respond to a reporter’s question about the decision as he and Xi began their summit.With Justin McCurry and agencies
On his Truth Social account before the meeting, Trump had described the Busan catch-up as the “G2”, a nod to the US and China being the world’s biggest economies and a play on the names of other formal multilateral groupings like the G7 and G20.Even though it’s not an official name, “G2” has been welcomed by some Chinese people online.“Clearly, the core of the global order is the US-China relationship”, said one popular post on Weibo.Another said:
Americans’ attitudes are shifting quickly; they are gradually adapting to the idea that the US and China are starting to stand on equal footing, and the world is big enough to accommodate a G2.
With Lillian Yang More

