By Admin 
The US-China tariff war that has been going on for months finally seems to be coming to an end. China has bowed down after US President Donald Trump’s strict tariff warnings. After nearly six years, Trump and Chinese President Xi Jinping sat face to face in Busan city of South Korea and after a meeting of about two hours, both the countries agreed on many important issues.
After the meeting, Trump said that he had a great conversation with Xi Jinping and now America will reduce the tariff imposed on China from 57% to 47%. In return, China has agreed to crack down on illegal fentanyl drugs, resume purchasing American soybeans and lift the ban on the export of rare earth minerals.
China bows down, America benefits on three fronts
America has got three big victories from this agreement. America will benefit greatly from this-
first advantage – Due to reduction in tariff, industrial and electronic products coming from China will become cheaper, which will reduce the production cost of American companies and will help in controlling inflation.
second advantage – China has promised to resume purchasing American soybeans. With this, American farmers will get back a market worth billions of dollars.
third advantage – China has agreed to lift the ban on export of rare earth minerals, which will provide great relief to the American defense industry.
Good news for American farmers
Before the trade war between America and China started, China was the largest buyer of American soybean. In the year 2025, America had exported soybean worth a total of 24.5 billion dollars, out of which only China was the buyer of 12.5 billion dollars, but after the increase in tariff, China had stopped buying American soybean. Now after this new deal, American farmers will again get a bigger market, which will increase their income and reduce the losses in the agriculture sector.
Agreement on ‘Rare Earth’ – Strategic Win for America
Trump’s biggest victory is considered to be agreeing to lift the restrictions imposed by China on rare earth minerals. In fact, these 17 special metals are used in smartphones, laptops, electric vehicles, batteries, radar systems, missiles and even jet engines. China produces about 60% of these minerals and processes 90% of them in the world. With the lifting of the ban on this, the American defense industry will no longer face shortage of materials required for equipment like F-35 jets, missile guidance systems and drones.
After the meeting, Trump said in the press conference, this is a new and wonderful beginning in US-China relations. We have agreed on many issues and it will be beneficial for both the countries.