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ABOARD AIR FORCE ONE — President Trump described his face-to-face with Chinese leader Xi Jinping on Thursday as a roaring success, saying he would cut tariffs on China, while Beijing had agreed to allow the export of rare earth elements and start buying American soybeans.

The president told reporters aboard Air Force One that the U.S. would lower tariffs implemented earlier this year as punishment on China for its selling of chemicals used to make fentanyl from 20% to 10%. That brings the total combined tariff rate on China down from 57% to 47%

“I guess on the scale from 0 to 10, with ten being the best, I would say the meeting was a 12,” Trump said. “I think it was a 12.”

Treasury Secretary Scott Bessent said China agreed to purchase 25 million metric tons of U.S. soybeans annually for the next three years, starting with 12 million metric tons from now to January. U.S. soybean exports to China, a huge market for them, had come to a standstill in the trade dispute.

“So you know, our great soybean farmers, who the Chinese used as political pawns, that’s off the table, and they should prosper in the years to come,” Bessent told Fox Business Network’s “Mornings with Maria.”

Trump said that he would go to China in April and Xi would come to the U.S. “some time after that.” The president said they also discussed the export of more advanced computer chips to China, saying that Nvidia would be in talks with Chinese officials.

Trump said he could sign a trade deal with China “pretty soon.”

Xi said Washington and Beijing would work to finalize their agreements to provide “peace of mind” to both countries and the rest of the world, according to a report on the meeting distributed by state media.

“Both sides should take the long-term perspective into account, focusing on the benefits of cooperation rather than falling into a vicious cycle of mutual retaliation,” he said.

Sources of tension remain

Despite Trump’s optimism after a 100-minute meeting with Xi in South Korea, there continues to be the potential for major tensions between the world’s two largest economies. Both nations are seeking dominant places in manufacturing, developing emerging technologies such as artificial intelligence, and shaping world affairs like Russia’s war in Ukraine.

Trump’s aggressive use of tariffs since returning to the White House for a second term, combined with China’s retaliatory limits on exports of rare earth elements, gave the meeting newfound urgency. There is a mutual recognition that neither side wants to risk blowing up the world economy in ways that could jeopardize their own country’s fortunes.

When the two were seated at the start of the meeting, Xi read prepared remarks that stressed a willingness to work together despite differences.

“Given our different national conditions, we do not always see eye to eye with each other,” he said through a translator. “It is normal for the two leading economies of the world to have frictions now and then.”

There was a slight difference in translation as China’s Xinhua News Agency reported Xi as telling Trump that having some differences is inevitable.

Finding ways to lower the temperature

The leaders met in Busan, South Korea, a port city about 47 miles south from Gyeongju, the main venue for the Asia-Pacific Economic Cooperation summit.

In the days leading up to the meeting, U.S. officials signaled that Trump did not intend to make good on a recent threat to impose an additional 100% import tax on Chinese goods, and China showed signs it was willing to relax its export controls on rare earths and also buy soybeans from America.

Officials from both countries met earlier this week in Kuala Lumpur to lay the groundwork for their leaders. Afterward, China’s top trade negotiator Li Chenggang said they had reached a “preliminary consensus,” a statement affirmed by U.S. Treasury Secretary Scott Bessent who said there was “ a very successful framework.”

Shortly before the meeting on Thursday, Trump posted on Truth Social that the meeting would be the “G2,” a recognition of America and China’s status as the world’s biggest economies. The Group of Seven and Group of 20 are other forums of industrialized nations.

But while those summits often happen at luxury spaces, this meeting took place in humbler surroundings: Trump and Xi met in a small gray building with a blue roof on a military base adjacent to Busan’s international airport.

The anticipated detente has given investors and businesses caught between the two nations a sense of relief. The U.S. stock market has climbed on the hopes of a trade framework coming out of the meeting.

Pressure points remain for both U.S. and China

Trump has outward confidence that the grounds for a deal are in place, but previous negotiations with China this year in Geneva, Switzerland and London had a start-stop quality to them. The initial promise of progress has repeatedly given way to both countries seeking a better position against the other.

“The proposed deal on the table fits the pattern we’ve seen all year: short-term stabilization dressed up as strategic progress,” said Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies. “Both sides are managing volatility, calibrating just enough cooperation to avert crisis while the deeper rivalry endures.”

The U.S. and China have each shown they believe they have levers to pressure the other, and the past year has demonstrated that tentative steps forward can be short-lived.

For Trump, that pressure comes from tariffs.

China had faced new tariffs this year totaling 30%, of which 20% were tied to its role in fentanyl production. But the tariff rates have been volatile. In April, he announced plans to jack the rate on Chinese goods to 145%, only to abandon those plans as markets recoiled.

Then, on Oct. 10, Trump threatened a 100% import tax because of China’s rare earth restrictions. That figure, including past tariffs, would now be 47% “effective immediately,” Trump told reporters on Thursday.

Xi has his own chokehold on the world economy because China is the top producer and processor of the rare earth minerals needed to make fighter jets, robots, electric vehicles and other high-tech products.

China had tightened export restrictions on Oct. 9, repeating a cycle in which each nation jockeys for an edge only to back down after more trade talks.

What might also matter is what happens directly after their talks. Trump plans to return to Washington, while Xi plans to stay on in South Korea to meet with regional leaders during the Asia-Pacific Economic Cooperation summit, which officially begins on Friday.

“Xi sees an opportunity to position China as a reliable partner and bolster bilateral and multilateral relations with countries frustrated by the U.S. administration’s tariff policy,” said Jay Truesdale, a former State Department official who is CEO of TD International, a risk and intelligence advisory firm.

Boak, Megerian and Schiefelbein write for the Associated Press. Boak reported from Tokyo and Megerian reported from Busan, South Korea. Ken Moritsugu in Beijing and Seung Min Kim and Michelle Price in Washington contributed to this report.

Oct. 10 (UPI) — President Donald Trump is imposing another 100% in tariffs on Chinese goods exported to the United States and will restrict software exports to China.

The new tariffs are in addition to an existing 30% tariff on Chinese goods and would take effect on Nov. 1, and possibly sooner, the president said in a social media post on Friday, according to CBS News.

The United States in November also will place restrictions on “critical software” destined for China.

Trump said he also might cancel a meeting with Chinese President Xi Jinping due to new Chinese restrictions on rare earth minerals exports.

Trump and Xi are scheduled to meet in South Korea during an international economic conference that starts on Nov. 2, but the U.S. president on Friday said he no longer has a reason to do so.

“Some very strange things are happening in China!” the president said Friday in a post on Truth Social.

“They are becoming very hostile and sending letters to countries throughout the world that they want to impose export controls on each and every element of production having to do with rare earths,” Trump said.

The export restrictions would “clog’ the markets and make life difficult for virtually every country in the world — especially for China,” he added.

The president said representatives of other nations have contacted his administration and are “extremely angry over this trade hostility, which came out of nowhere.”

“There is no way China should be allowed to hold the world ‘captive,'” Trump said.

“But that seems to have been their plan for quite some time, starting with the ‘magnets’ and other elements that they have quietly amassed into somewhat of a monopoly position.”

Pending Chinese rare earth minerals restrictions

China sent letters that are several pages long to other nations and detail every rare earth element that Chinese leaders want to withhold from other countries, Trump said.

China controls most of the world’s rare earth minerals market and announced the new restrictions on Thursday, according to CNBC.

The restrictions announced on Thursday would take effect on Dec. 1 and affect the manufacturing of semiconductors and other technologies that rely on rare earth minerals, such as batteries for electric vehicles.

The Chinese government intends to require companies located outside of China to obtain a license to export their goods that contain rare earth minerals, The New York Times reported.

It also seeks to regulate the refining of rare earth minerals and certain types of technologies used to manufacture batteries.

The Chinese trade restrictions were announced amid efforts to ease trade tensions between the United States and China, which Trump and Jinping were expected to discuss during the Asia-Pacific Economic Cooperation conference in Seoul, South Korea, in January, Politico reported.

Mutually assured economic disruption

Beijing’s announcement on Thursday could trigger “mutually assured disruption” of the Chinese, U.S. and other global economies, said Craig Singleton, a China fellow for the Foundation for Defense of Democracies.

He called China’s move a “miscalculation” and said Trump’s social media post shows China has crossed a line that is likely to cause a trade war.

“Both sides are reaching for their economic weapons at the same time,” Singleton told Politico, “and neither seems willing to back down.”

The Dow Jones Industrial Average reflected the news of the likely trade war on Friday and was down more than 520 points at $45,837.60 as of 2:25 p.m. EDT.

While the Dow is down, China’s pending rare earth minerals trade restrictions have spurred a run on related stocks, CNBC reported.

Rare earth mining firm MP Materials’ share price rose by 15% and USA Rare Earth’s shares by 19 percent during morning trading on the New York Stock Exchange.

USA Rare Earth is a vertically integrated rare earth miner and producer of magnets used in a variety of technologies.

NioCorp Developments’ share price also rose by 14% and Energy Fuels’ by more than 10% during trading late Friday morning.

WASHINGTON — President Trump said Friday that he’s placing an additional 100% tax on Chinese imports starting on Nov. 1 or sooner, potentially escalating tariff rates close to levels that in April fanned fears of a steep recession and financial market chaos.

The president said on his social media site that he is imposing these new tariffs because of export controls placed on rare earth elements by China. The new tariffs built on an earlier post Friday on Truth Social in which Trump said that “there seems to be no reason” to meet with Chinese leader Xi Jinping as part of an upcoming trip to South Korea.

Trump said that “starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying.”

The announcement after financial markets closed on Friday risked throwing the global economy into turmoil. Not only would the global trade war instigated by Trump be rekindled at dangerous levels, but import taxes being heaped on top of the 30% already being levied on Chinese goods could, by the administration’s past statements, cause trade to break down between the U.S. and China.

While Trump’s wording was definitive, he is also famously known for backing down from threats, such that some investors began engaging in what The Financial Times called the “TACO” trade, which stands for “Trump Always Chickens Out.” The prospect of tariffs this large could compound the president’s own political worries inside the U.S., potentially pushing up inflation at a moment when the job market appears fragile and the drags from a government shutdown are starting to compound into layoffs of federal workers.

The president also said that the U.S. government would respond to China by putting its own export controls “on any and all critical software” from American firms.

It’s possible that this could amount to either posturing by the United States for eventual negotiations or a retaliatory step that could foster new fears about the stability of the global economy.

The United States and China have been jostling for advantage in trade talks, after the import taxes announced earlier this year triggered a trade war between the world’s two largest economies. Both nations agreed to ratchet down tariffs after negotiations in Switzerland and the United Kingdom, yet tensions remain as China has continued to restrict America’s access to the difficult-to-mine rare earths needed for a wide array of U.S. technologies.

Trump did not formally cancel the meeting with Xi, so much as indicating that it might not happen as part of a trip at the end of the month in Asia. The trip was scheduled to include a stop in Malaysia, which is hosting the Association of Southeast Asian Nations summit; a stop in Japan; and a visit to South Korea, where he was slated to meet with Xi ahead of the Asia-Pacific Economic Cooperation summit.

“I was to meet President Xi in two weeks, at APEC, in South Korea, but now there seems to be no reason to do so,” Trump posted.

Trump’s threat shattered a monthslong calm on Wall Street, and the S&P 500 tumbled 2.7% on worries about the rising tensions between the world’s largest economies. It was the market’s worst day since April when the president last bandied about import taxes this high. Still, the stock market closed before the president spelled out the terms of his threat.

China’s new restrictions

On Thursday, the Chinese government restricted access to the rare earths ahead of the scheduled Trump-Xi meeting. Beijing would require foreign companies to get special approval for shipping the metallic elements abroad. It also announced permitting requirements on exports of technologies used in the mining, smelting and recycling of rare earths, adding that any export requests for products used in military goods would be rejected.

Trump said that China is “becoming very hostile” and that it’s holding the world “captive” by restricting access to the metals and magnets used in electronics, computer chips, lasers, jet engines and other technologies.

The Chinese Embassy in Washington did not immediately respond to an Associated Press request for comment.

Sun Yun, director of the China program at the Stimson Center, said Beijing reacted to U.S. sanctions of Chinese companies this week and the upcoming port fees targeting China-related vessels but said there’s room for deescalation to keep the leaders’ meeting alive. “It is a disproportional reaction,” Sun said. “Beijing feels that deescalation will have to be mutual as well. There is room for maneuver, especially on the implementation.”

The U.S. president said the move on rare earths was “especially inappropriate” given the announcement of a ceasefire between Israel and Hamas in Gaza so that the remaining hostages from Hamas’ Oct. 7, 2023, attack can be released. He raised the possibility without evidence that China was trying to steal the moment from him for his role in the ceasefire, saying on social media, “I wonder if that timing was coincidental?”

There is already a backlog of export license applications from Beijing’s previous round of export controls on rare earth elements, and the latest announcements “add further complexity to the global supply chain of rare earth elements,” the European Union Chamber of Commerce in China said in a statement.

Gracelin Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies in Washington, D.C., said China signaled it is open to negotiations, but it also holds leverage because to dominates the market for rare earths with 70% of the mining and 93% of the production of permanent magnets made from them that are crucial to high-tech products and the military.

“These restrictions undermine our ability to develop our industrial base at a time when we need to. And then second, it’s a powerful negotiating tool,” she said. And these restrictions can hurt efforts to strengthen the U.S. military in the midst of global tensions because rare earths are needed.

Trump’s trade war

The outbreak of a tariff-fueled trade war between the U.S. and China initially caused the world economy to shudder over the possibility of global commerce collapsing. Trump imposed tariffs totaling 145% on Chinese goods, with China responding with import taxes of 125% on American products.

The taxes were so high as to effectively be a blockade on trade between the countries. That led to negotiations that reduced the tariff charged by the U.S. government to 30% and the rate imposed by China to 10% so that further talks could take place. The relief those lower rates provided could now disappear with the new import taxes Trump threatened, likely raising the stakes not only of whether Trump and Xi meet but how any disputes are resolved.

Differences continue over America’s access to rare earths from China, U.S. restrictions on China’s ability to import advanced computer chips, sales of American-grown soybeans and a series of tit-for-tat port fees being levied by both countries starting on Tuesday.

Nebraska Republican Rep. Don Bacon said “China has not been a fair-trade partner for years,” but the Trump administration should have anticipated China’s restrictions on rare earths and refusal to buy American soybeans in response to the tariffs.

How analysts see moves by U.S. and China

Wendy Cutler, senior vice president of the Asia Society Policy Institute, said Trump’s post shows the fragility of the détente between the two countries and it’s unclear whether the two sides are willing to de-escalate to save the bilateral meeting.

Cole McFaul, a research fellow at Georgetown University’s Center for Security and Emerging Technology, said that Trump appeared in his post to be readying for talks on the possibility that China had overplayed its hand. By contrast, China sees itself as having come out ahead when the two countries have engaged in talks.

“From Beijing’s point of view, they’re in a moment where they’re feeling a lot of confidence about their ability to handle the Trump administration,” McFaul said. “Their impression is they’ve come to the negotiating table and extracted key concessions.”

Craig Singleton, senior director of the China program at the Foundation for Defense of Democracies, a think tank, said Trump’s post could “mark the beginning of the end of the tariff truce” that had lowered the tax rates charged by both countries.

It’s still unclear how Trump intends to follow through on his threats and how China plans to respond.

“But the risk is clear: Mutually assured disruption between the two sides is no longer a metaphor,” Singleton said. “Both sides are reaching for their economic weapons at the same time, and neither seems willing to back down.”

Boak and Tang write for the Associated Press. AP writers Stan Choe in New York and Josh Funk in Omaha, Neb., contributed to the report.