In a significant development during the APEC summit in South Korea, US President Donald Trump and Chinese President Xi Jinping have reached a tentative agreement to maintain the flow of rare earth exports from China to the US. This meeting, the first between the two leaders in six years, aimed to ease ongoing trade tensions between the world's two largest economies.

Trump described the meeting as a "tremendous success," rating it a "12 out of 10" and highlighting the importance of the agreements made. He stated that China would resume its global supply of rare earth elements and purchase US agricultural products, marking a potential thaw in trade relations. The US President also mentioned that tariffs on Chinese goods would be reduced from 57% to 47% as part of the negotiations.

The agreement on rare earths is particularly crucial, as these minerals are essential for various high-tech industries, including electronics and defense. Trump noted, "There is no roadblock at all on rare earths. That will hopefully disappear from our vocabulary for a little while." This deal is seen as a temporary reprieve from the escalating tariff war, with China agreeing to pause its export controls for one year.

However, the meeting also revealed some underlying tensions. Critics pointed out that while Trump was optimistic, Xi's demeanor was more reserved. Xi emphasized the need for cooperation and warned against a cycle of retaliation, suggesting that further discussions would be necessary to refine the agreements.

The talks also touched on the issue of fentanyl, with Trump claiming that China would work to stop its flow into the US. He expressed frustration over critics who dismissed the meeting's outcomes, stating, "Words like that are almost treasonous!"

The implications of this meeting extend beyond the US and China. For India, the situation is complex. With the US reducing tariffs on China, India now faces the highest tariffs at 50%, potentially putting it at a disadvantage in trade negotiations. Trump has indicated a desire for a trade deal with India, but the current dynamics may complicate those discussions.

Overall, while the meeting between Trump and Xi has led to some positive developments, it also highlights the ongoing challenges in US-China relations and the need for careful navigation in global trade policies.