Trump strikes deal with 'tough negotiator' Xi Jinping to slash tariffs

Donald Trump struck a deal with Chinese President Xi Jinping during their first face-to-face meeting in six years.

The two convened in Busan, South Korea on Thursday amid a raging trade war kicked off by Trump earlier this year that saw Chinese imports to the US reach 57 percent.

But Trump told reporters on Air Force One after the historic sit-down that he slashed 10 percent from China's tariff bill because he believes their leader will work to stymie the flow of deadly drugs to the US.

'On fentanyl we agreed that he was going to work very hard to stop the flow,' Trump insisted on the plane ride home. 'I think you're going to see some real action taken.'

He said the tariff reduction is 'effective immediately.'

'I believe he's going to work very hard to stop the death that's coming in.'

Xi acknowledged ahead of the closed-door meeting the 'frictions' between the two countries, as Trump joked to reporters about his counterpart being a 'tough negotiator.'

Their handshake Thursday morning marked the first in-person contact between the leaders of the world's two largest economies after Trump kicked off a trade war with China just days after reentering office when he levied an additional 10 percent tariff on imports.

'We have a deal,' said Trump as he specifically called out an agreement in that deal to 'settle' the rare earth mineral issue, claiming: 'There's no roadblock at all on rare earth.'

Xi had a powerful negotiating hand at Thursday's meeting because China produces 80 to 90 percent of the world's rare earth minerals, which are essential for the US tech industry.

Trump said that he agreed to visit China in April, and that Xi would come to the US for a visit to either Palm Beach or Washington, DC at a later date.

'On a scale from zero to 10, with 10 being the best, I would say the meeting was a 12,' the president lauded as he wrapped a weeklong trip through Asia.

The meeting, which lasted for less than two hours, was high-stakes for both nations, and the two appeared to be on their best behavior levying compliments – but they were also cautious. 

'Given our different national conditions, we do not always see eye-to-eye with each other and it is normal for the two leading economies of the world to have frictions every now and then,' Xi said as they sat down for negotiations at an air base in Busan, South Korea.

And Trump insisted: 'We've already agreed to a lot of things and we'll agree to some more right now.' 

Trump needs a political win on the foreign stage after his peace deal between Israel and Hamas began to fall apart and talks for a ceasefire between Ukraine and Russia hit a standstill this month.

The president blasted off a social media post just moments before his consequential meeting with Xi announcing his direction for the Department of War to begin nuclear weapon testing 'immediately.' He specifically called out needing to meet the level of testing made by Russia and China.

And while Trump relies on flattery to build relationships with adversarial world leaders, he also had a quick quip for Xi right after they shook hands.

'I think he's a very tough negotiator. That's not good,' he chuckled. 

Trump added: 'We'll have a great understanding. We have a good relationship.'

Meanwhile, Xi called their relationship 'warm.'

'Since your reelection we have spoken on the phone three times, exchanged several letters and stayed in close contact,' he said, according to a live translation of his short remarks.

'You and I, at the helm of U.S.-China relations, should stay the right course,' Xi insisted. 

After and hour-and-40-minute meeting, the two world leaders and their delegations emerged from the building in Busan, shook hands and Trump leaned in to say something to Xi before they parted ways. 

The two did not make any public remarks after their bilateral sit-down.  

The president has been highly critical of Xi in his second term and went to his social media site Truth Social to link the Chinese leader to Russian President Vladimir Putin and North Korean autocrat Kim Jong Un.

But Xi arrived at the meeting with a powerful negotiating hand given China produces 80 to 90 percent of the world's rare earth minerals, which are essential for America's high-tech industry. 

The US has now discovered Beijing can survive without its farmers' soybeans since they can import from South America instead, Trump realizes that his country cannot thrive technology-wise without the rare earths from China.

Trump and Xi agreed to meet on the Gimhae South Korean Air Base sitting at the edge of the Gimhae International Airport.

Among Trump's team attending the high-stakes meeting in Busan are Chief of Staff Susie Wiles, Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, Homeland Security Advisor Stephen Miller and Trade Advisor Jamieson Greer.

The president jetted off last week for a weeklong trip through Asia – starting in Malaysia, then to Japan and finishing off in South Korea with his Xi meeting.