The United States and China have concluded a one-year trade agreement that will reduce American tariffs on Chinese goods from 57 to 47 percent.
President Donald Trump described the agreement as groundbreaking following his meeting with Chinese President Xi Jinping on October 30 during the APEC summit in Busan, South Korea.
In a post on the social media platform Truth Social, Trump stated: "My G2 meeting with President Xi of China was a great one for both of our countries. This meeting will lead to everlasting peace and success. God bless both China and the USA!"
Aboard the presidential plane Air Force One on his way back to Washington, Trump confirmed that the countries had reached an agreement.
— We have a deal, he told assembled journalists and explained that the trade agreement will be renegotiated annually.
— Every year we'll renegotiate the deal, but I think the deal will go on for a long time, long beyond the year. We'll negotiate at the end of the year.
Fentanyl behind tariff reduction
Trump emphasized that the ten percentage point tariff reduction from 57 to 47 percent is directly linked to China agreeing to take strong action against the fentanyl problem.
— It was 57, now it's 47.
He further explained that the reduction was due to the fentanyl issue and China's actions.
— We reduced it by the fentanyl because I believe they are really taking strong action. We've already seen the action on fentanyl, and they're taking very strong action. So reduced to 10 percent.
Large purchases of agricultural products
In a further announcement, Trump stated that China has committed to immediately purchasing "large and tremendous amounts" of soybeans and other American agricultural products as part of the agreement.
— We're in agreement on so many elements. Large amounts, tremendous amounts of the soybeans and other farm products are going to be purchased, starting immediately. If you notice, President Xi authorised yesterday for China to start buying very large quantities of soybeans and other things, which I appreciated. That was a very nice gesture.
The announcement comes after China earlier this year halted its purchases of American soybeans in response to Trump's tariff announcements. The halt left American farmers with unsold crops worth billions of dollars, according to CNN.





