By developer 
President Donald Trump announced Thursday that China will resume large-scale purchases of American agricultural products, ease restrictions on rare earth minerals, and begin importing oil and natural gas from Alaska. The announcement marks a major de-escalation in trade tensions between the world’s two largest economies.
Trump made the announcement following what he described as a “truly great meeting” with Chinese President Xi Jinping. The two, meeting for the first time in months, agreed to advance negotiations toward a broader trade agreement and to ease tariffs that have strained global markets.
“There is enormous respect between our two countries, and that will only be enhanced with what just took place,” Trump said. “We agreed on many things, with others, even of high importance, being very close to resolved.”
Speaking aboard Air Force One after the meeting, Trump said he would rate the discussion “a 12 out of 10.” He announced that tariffs on Chinese imports will be reduced to 47%, down 10% from prior levels, a move he attributed to Beijing’s cooperation in curbing the illicit export of fentanyl precursors.
Earlier this year, trade relations had nearly collapsed after both countries imposed tariffs exceeding 100%. In May, the two nations agreed to a temporary 90-day truce, reducing duties while talks continued. China lowered its levies on US goods from 125% to 10%, and the US cut its tariffs on Chinese imports from 145% to 30%.
That agreement briefly faltered in June amid concerns about rare earth exports – strategic minerals critical to defense and technology industries. But Thursday’s announcement signals a return to stability.
Economists and industry leaders have warned that prolonged tariffs could drive up prices on everyday consumer goods and slow growth. Trump, however, has defended tariffs as a tool to revive U.S. manufacturing and shift the tax burden away from American families.
“We are in agreement on so many elements,” Trump said. “Large amounts – tremendous amounts – of soybeans and other farm products are going to be purchased immediately.”
On Truth Social, Trump urged American farmers to prepare for expansion. “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 agreement also covers critical minerals and energy. China, which controls much of the global rare earth supply chain, had tightened exports in recent months. Trump had threatened retaliatory tariffs of up to 100% on top of existing levels. Those tensions appear resolved.
“China has agreed to continue the flow of Rare Earth, Critical Minerals, Magnets, etc., openly and freely,” Trump wrote, calling it a “significant breakthrough” for US manufacturers and defense contractors.
Trump said the deal will be revisited in a year but expects it to last “a long time.” He also revealed that China will begin purchasing American oil and gas, including from Alaska.
“China also agreed that they will begin the process of purchasing American Energy,” Trump said. “In fact, a very large-scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska.”
While full details of the agreements have yet to be released, Thursday’s announcements is clearly a major diplomatic and economic shift after months of volatility. If implemented, they could boost US farm exports, revitalize Alaska’s energy sector, and stabilize global supply chains for critical minerals.
“We have a deal,” Trump said. “Now in a year we’ll renegotiate the deal—but I think it will go on for a long time.”
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