Donald Trump has indicated that the United States could sign a trade deal with China "pretty soon" following his discussions with Chinese President Xi Jinping in South Korea. The announcement comes amid renewed tensions between the world’s two largest economies, making the talks a significant development in global trade relations.

During the meeting, Trump said that tariffs on Chinese imports would be lowered "effective immediately." 

He also mentioned that China would provide the US with better access to rare earths—a group of 17 minerals crucial for manufacturing high-tech devices, electric vehicles, and military equipment. The US relies heavily on these minerals for its technology and defense sectors, as domestic production is limited.

Despite the optimistic tone from the US side, China issued a more subdued statement, noting that both countries had reached a consensus to resolve "major trade issues." 

Specific details of the agreement, including how tariffs would be adjusted and the exact terms of rare earth access, are still pending.

The two sides have been negotiating for months to finalise a comprehensive deal that could stabilise trade relations. Analysts say the latest discussions represent a breakthrough but caution that significant hurdles remain before a formal agreement is signed.

The meeting also came amid ongoing uncertainty over the sale of Chinese-owned TikTok’s US operations, with no final decision announced.

While the talks primarily concern the US and China, experts emphasise that any breakthrough will have ripple effects on the global economy, affecting trade, supply chains, and international markets worldwide.

# BBC