Trump: China to buy U.S. ag products, oil and gas, export rare earth minerals

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(The Center Square) – President Donald Trump said Thursday that China will resume buying U.S. agricultural products, ease restrictions on rare earth minerals and import oil and natural gas from Alaska.

Trump's comments signaled a reduction in tensions between the leaders of the world's two largest economies after a closely watched meeting with Xi Jinping, president of the People's Republic of China. Trump said the two nations were closer to reaching a broader trade agreement.

"I had a truly great meeting with President Xi of China. There is enormous respect between our two Countries, and that will only be enhanced with what just took place. We agreed on many things, with others, even of high importance, being very close to resolved," Trump wrote in a social media post. 

The U.S. president told reporters on Air Force One after the meeting that he would rate it a 12 out of 10. 

"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 social media, Trump told U.S. farmers to buy more land.

"I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products. Our Farmers will be very happy!," Trump wrote. "In fact, as I said once before during my first Administration, Farmers should immediately go out and buy more land and larger tractors."

Trump also said he and Xi reached a deal on rare earth minerals. Ahead of the meeting, China had tightened exports of such minerals, which are critical to advanced manufacturing in everything from fighter jets to electronics. Trump had threatened China with an additional 100% tariff on top of existing levels. Trump said those issues had been sorted.

"China has agreed to continue the flow of Rare Earth, Critical Minerals, Magnets, etc., openly and freely," Trump wrote on Truth Social. 

He said the agreement will be revisited in a year.

"We have a deal," Trump said aboard Air Force One. "Now in a year we'll renegotiate the deal, but I think the deal will go on for a long time."

Trump also said China would buy U.S. oil and gas.

"China also agreed that they will begin the process of purchasing American Energy," the U.S. president wrote. "In fact, a very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska."

Trump said U.S. tariffs on Chinese imports will be reduced to 47%, down 10% from before the meeting. Trump attributed the reduction to China's work to curb illicit exports of fentanyl precursors, which Trump has blamed for fueling an opioid addiction and overdose crises in the U.S. China says it has among the strictest drug laws in the world and blames Americans' seemingly insatiable appetite for illicit fentanyl.

Earlier this year, trade between the U.S. and China came to a standstill after each country imposed tariffs on the other exceeding 100%. In May, the two nations reached a 90-day deal to continue talks. At the time, the U.S. said it would reduce its tariffs on China from 145% to 30% while the two nations continued to talk. China announced that it would reduce its levies on U.S. imports from 125% to 10%. That truce was briefly disrupted in June over concerns about rare earth exports, but Trump later said the deal was back on track.

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products throughout the U.S.

Trump has said wants to use tariffs to revive manufacturing jobs lost to lower-wage countries in the past, redistribute the tax burden away from U.S. families, and reduce the national debt.

A tariff is a tax on imported goods.