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Tag Archives: donald trump

Trump cuts tariffs on China after meeting Xi in South Korea

Trump cuts tariffs on China after meeting Xi in South Korea

By JOSH BOAK, CHRIS MEGERIAN and MARK SCHIEFELBEIN Associated Press

ABOARD AIR FORCE ONE (AP) — President Donald 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%

President Donald 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.

“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.”

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 76 kilometers (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 US 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.

___

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

Federal Reserve cuts key rate as government shutdown clouds economic outlook

Federal Reserve cuts key rate as government shutdown clouds economic outlook

WASHINGTON (AP) — The Federal Reserve cut its key interest rate Wednesday for a second time this year as it seeks to shore up economic growth and hiring even as inflation stays elevated. The move comes amid a fraught time for the central bank, with hiring sluggish and yet inflation stuck above the Fed’s 2% target. Compounding its challenges, the central bank is navigating without the economic signposts it typically relies on from the government, including monthly reports on jobs, inflation and consumer spending, which have been suspended because of the government shutdown. The Fed has signaled it may reduce its key rate again in December but the data drought raises the uncertainty around its next moves.… Continue Reading

Trump praises Japan’s new prime minister, saying US is an ‘ally at the strongest level’

Trump praises Japan’s new prime minister, saying US is an ‘ally at the strongest level’

TOKYO (AP) — President Donald Trump began one of his busiest days of his Asia trip on Tuesday by warmly greeting the new Japanese prime minister. He plans to later speak to U.S. troops aboard an aircraft carrier and mingle with business leaders. Sanae Takaichi became Japan’s first female prime minister just days ago and aims to strengthen ties with Trump while defending Japan’s economic interests. Trump seeks $550 billion in Japanese investment to reduce U.S. tariffs. He arrived in Tokyo on Monday after attending a summit in Malaysia. There, he celebrated a ceasefire agreement between Thailand and Cambodia. Meanwhile, tensions between the U.S. and China appear to be cooling, with a trade deal possibly in the works. Trump plans to leave for South Korea on Wednesday.… Continue Reading

Trump administration posts notice that no federal food aid will go out Nov. 1

Trump administration posts notice that no federal food aid will go out Nov. 1

The U.S. Department of Agriculture has posted a notice on its website saying federal food aid will not go out Nov. 1 as the government shutdown drags on. The cutoff would expand the impact of the impasse to some of the Americans most in need unless a resolution is found in just a few days. The notice comes after the Trump administration said it will not tap roughly $5 billion in contingency funds to keep the benefits flowing into November. The Trump administration blames Democrats, who say they won’t agree to reopen the government until Republicans negotiate with them on extending expiring subsidies under the Affordable Care Act.… Continue Reading

North Carolina GOP advances congressional map to secure another House seat for Trump

North Carolina GOP advances congressional map to secure another House seat for Trump

RALEIGH, N.C. (AP) — North Carolina’s Republican-controlled legislature has formally begun redrawing the state’s congressional district map. The effort aims to help the GOP gain another U.S. House seat, supporting Donald Trump’s push to retain party control at midterms. The state Senate voted Monday along party lines for new boundaries for two eastern districts. This move aims to thwart the reelection of Democratic Rep. Don Davis, one of the state’s three Black members of Congress. The proposed map should move to the House on Tuesday. Litigation challenging the map is almost certain, with allegations of harming Black voting power likely.… Continue Reading

Supreme Court will consider whether people who regularly smoke pot can legally own guns

Supreme Court will consider whether people who regularly smoke pot can legally own guns

WASHINGTON (AP) — The Supreme Court will consider whether people who regularly smoke marijuana can legally own guns, the latest firearm case to come before the court since its 2022 decision expanding gun rights. The high court agreed to hear the case Monday. President Donald Trump’s administration is asking the justices to revive a case against a Texas man charged with a felony because he allegedly had a gun in his home and acknowledged being a regular pot user. Defense attorneys got the charge tossed out after an appeals court largely struck down a law that bans guns from users of illegal drugs under the high court’s more expansive view of the Second Amendment.… Continue Reading

‘No Kings’ protests against Trump bring a street party vibe to cities nationwide

‘No Kings’ protests against Trump bring a street party vibe to cities nationwide

WASHINGTON (AP) — Large crowds of protesters have gathered in cities across the United for “No Kings” demonstrations against what they see a drift into authoritarianism under President Donald Trump. People carrying signs with slogans such as “Nothing is more patriotic than protesting” or “Resist Fascism” packed into New York City’s Times Square on Saturday. They rallied by the thousands in parks in Boston, Atlanta and Chicago. There were also demonstrations outside capitols in several Republican-led states and hundreds of smaller public spaces. Republicans disparaged the demonstrations as “Hate America” rallies, but in many places the events looked more like a street party.… Continue Reading

Trump tells Zelenskyy he’s reluctant to sell Ukraine Tomahawk missiles after warning Russia he might

Trump tells Zelenskyy he’s reluctant to sell Ukraine Tomahawk missiles after warning Russia he might

WASHINGTON (AP) — President Donald Trump has signaled to Ukrainian President Volodymyr Zelenskyy that he’s leaning against selling long-range Tomahawk cruise missiles to Kyiv. Zelenskyy at the start of Friday’s White House talks said he had a “proposition” in which Ukraine could provide the United States with its advanced drones, while Washington would sell Kyiv the Tomahawks, which Ukrainian officials say they desperately need to motivate Russian President Vladmir Putin to get serious about peace talks. But Trump said he had “an obligation also to make sure that” the United States is “completely stocked up.” The U.S. leader added he was optimistic the war would soon end, mitigating Ukraine’s need for the powerful weapon.… Continue Reading

Ex-Trump national security adviser Bolton charged with storing and sharing classified information

Ex-Trump national security adviser Bolton charged with storing and sharing classified information

GREENBELT, Md. (AP) — Former Trump administration national security adviser John Bolton has been charged with storing top secret records at home and sharing with relatives notes that contained classified information. The 18-count indictment Thursday also suggests classified information was exposed when operatives believed linked to the Iranian regime hacked Bolton’s email account in 2021 and gained access to sensitive material he had shared. The investigation into Bolton, who served for more than a year in President Donald Trump’s administration before being fired in 2019 and emerging as an outspoken critic of the Republican leader, burst into public view in August when the FBI searched his home in Maryland and his office in Washington.… Continue Reading

Senate Democrats, holding out for health care, reject government funding bill for 10th time

Senate Democrats, holding out for health care, reject government funding bill for 10th time

WASHINGTON (AP) — Senate Democrats are rejecting for the 10th time a stopgap spending bill that would reopen the government. They are insisting they won’t back away from demands that Congress take up health care benefits. The repetition of votes on the funding bill has become a daily drumbeat in Congress. It underscores how intractable the situation has become as the vote has at times been the only item on the agenda for the Senate floor. House Republicans have left Washington altogether. The impasse has lasted over two weeks, leaving hundreds of thousands of federal workers furloughed, even more without a guaranteed payday and Congress essentially paralyzed.… Continue Reading

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