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Trump says tariffs on China cut to 47% from 57%

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China agreed to keep rare earth exports flowing, Trump

says

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Both sides escalate trade threats for leverage ahead of

talks

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Summit in South Korea lasted nearly two hours

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Reuters Live: Trump and Xi meet in South Korea

(Adds Trump quote in paragraph 3, market reaction)

By Trevor Hunnicutt

BUSAN, South Korea, Oct 30 (Reuters) - U.S. President

Donald Trump said on Thursday he had agreed to reduce tariffs on

China to 47% in exchange for Beijing resuming U.S. soybean

purchases, keeping rare earths exports flowing and cracking down

on the illicit trade of fentanyl.

His remarks after face-to-face talks with Chinese President

Xi Jinping in the South Korean city of Busan, their first since

2019, marked the finale of Trump's whirlwind Asia trip on which

he also touted trade breakthroughs with South Korea, Japan and

Southeast Asian nations.

"I thought it was an amazing meeting," Trump told reporters

aboard Air Force One shortly after he departed Busan, adding

that tariffs imposed on Chinese imports would be cut to 47% from

57%.

Trading in global stocks was choppy as Trump revealed

details of the deal, with major Asian indexes and European

futures swinging between gains and losses. China's Shanghai

Composite Index slipped from a 10-year high, while U.S.

soybean futures were weaker.

World stock markets from Wall Street to Tokyo had hit record

highs leading up to the meeting on hopes of a breakthrough in a

trade war between the world's two largest economies that has

upended supply chains and rocked global business confidence.

The meeting, which took place on the sidelines of the

Asia-Pacific Economic Cooperation (APEC) summit, lasted nearly

two hours. Trump shook hands and escorted Xi to his car before

the U.S. president was given a red carpet send-off at the

airport.

Trump repeatedly talked up the prospect of reaching

agreement with Xi since U.S. negotiators on Sunday said they had

agreed a framework with China that will avoid 100% U.S. tariffs

on Chinese goods and achieve a deferral of China's export curbs

on rare earths, a sector it dominates.

But with both countries increasingly willing to play

hardball over areas of economic and geopolitical competition,

many questions remain about how long any trade detente may last.