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Trump Approves South Korean Nuclear Submarine Build in U.S. as Trump-Xi Talks Yield Trade Easing

Investors cheered Trump's account of tariff and commodity understandings with Xi during the APEC trip.

Overview

  • Trump said he authorized South Korea to acquire a nuclear-powered submarine, with construction to take place at Philadelphia shipyards.
  • A South Korean presidential adviser reported a broad bilateral accord spanning investment and shipbuilding tied to Seoul’s naval plans.
  • After meeting Xi in Busan, Trump announced understandings to reduce U.S. tariffs on China to 47% from 57% and to restart Chinese purchases of U.S. soybeans.
  • Trump also cited a pause of China’s rare-earth export licensing for at least a year and an immediate cut to fentanyl-related tariffs to 10%.
  • Markets rallied on the reported U.S.-China moves, with Chinese stocks hitting decade highs and the yuan strengthening.