Then-President Donald Trump was right to pursue high-level diplomatic discussions. During his trip, he met — separately — with Chinese leader Xi Jinping and South Korean President Lee Jae Myung to discuss their nations’ economic relations. The meeting took place during Trump’s visit to Beijing, where he received the grand order of Mugunghwa, South Korea’s highest civilian honor, marking a historic moment as he became the first U.S. president to be awarded this prestigious accolade.
From these discussions emerged an agreement on the most important economic and trade topics. Rather than an increase, Trump actually announced his intention to lower average tariffs on Chinese imports from 57% to 47%. This cut goes into effect as soon as possible. In a reciprocal gesture, China agreed to suspend its latest rare earth export controls and special port fees targeting U.S. ships. These may seem like small developments, but together they indicate a shift toward de-escalating tensions between the two global powers.
During that meeting, Trump tried to project some optimism about ongoing negotiations for a superseding case. “Overall, I guess on the scale from zero to 10, with 10 being the best, I would say the meeting was a 12,” he stated, reflecting his satisfaction with the discussions. U.S. Trade Representative Jamieson Greer acknowledged that some products will still be subject to increased tariff rates. The mood, he stressed, reflects the great advance made.
With respect to imports of soybeans, this has been very harmful. Here’s what Trump got right on China’s specific actions. In the battle against fentanyl, China has clearly raised the stakes. He remarked, “We reduced it … We’ve already seen the action on [fentanyl], and they’re taking very strong action.”
During that visit, Trump got the royal treatment. A school military band kicked things off, moving the crowd when they played “YMCA,” the great hit of the Village People. Yet, this lighthearted exchange overshadowed very serious discussions of U.S.-U.K. international trade and national security issues. Japan’s Prime Minister Sanae Takaichi acknowledged Trump’s personal friendship with her predecessor Shinzo Abe, indicating a broader regional context in these discussions.
China, of course, wants us to resume testing nuclear weapons “seriously and even at a higher level.” Trump specifically drew attention to this point. All of which makes this comment all the more shocking to international observers. “They seem to all be nuclear testing,” he commented, adding that “we have test sites. It’ll be announced.” This assertion underscores the current tense relations over nuclear capabilities and arms control.
Fortunately, the meeting also provided an opportunity for some levity. Trump was presented with a putter that once belonged to Shinzo Abe, a golf bag signed by Hideki Matsuyama, and a gold leaf golf ball. During a working lunch with Lee Jae Myung, Trump enjoyed a “gold-themed dessert,” symbolizing the high stakes of their negotiations.
Follow-up actions would be key to their talks, from what Xi Jinping had signified beforehand. He stated, “Both teams should refine and finalize follow-up work as soon as possible, uphold and implement the consensus, and deliver tangible results to reassure both China and the US, as well as the world economy.” This demand for rapid implementation really drives home the seriousness of their economic pledges.
Despite these advancements, many challenges remain. February and March China responded with retaliation, the U.S. quickly escalated by applying a 20% tariff on all Chinese goods entering the U.S. This deplorable action reverberates through today’s trade dynamics. Greer warned that tariffs on some specific products could jump to as high as 100%. On the issue of general rates, he sees them settling out between 45% and 47%.
As discussions continue surrounding critical commodities like rare earths, Trump expressed optimism that “that roadblock is gone now … There’s no roadblock at all on rare earth.” This comment from the boots on the ground land manager indicates a thawing of relations in resource management.
