BUSAN: U.S. President Donald Trump said on Thursday he had agreed with President Xi Jinping to trim tariffs on China in exchange for Beijing curbing the illicit fentanyl trade, resuming US soyabean purchases, and maintaining rare earth exports.
The face-to-face meeting in the South Korean city of Busan - their first since 2019 - capped Trump's whirlwind Asia tour, during which he also touted trade breakthroughs with South Korea, Japan and Southeast Asian nations.
According to Beijing, the deal also included a US pledge to delay for one year a new measure - opposed by China - that would bar thousands of Chinese firms from accessing US technology if partly owned by sanctioned companies.
"It was an amazing meeting," Trump told reporters aboard Air Force One, calling the talks a "12 out of 10." He said tariffs on Chinese imports would be reduced to 47% from 57%, by halving to 10% the rate on goods linked to fentanyl precursor chemicals.
Trump said Xi had vowed to work "very hard to stop the flow" of fentanyl, the deadly synthetic opioid driving US overdose deaths. China's commerce ministry said it would pause recently unveiled export controls on rare earths - key minerals used in cars, planes, and weapons - for one year.
Trump added that China would buy U.S. oil and gas, while Bessent noted Xi had expressed interest in a new US pipeline being developed in Alaska, though details were scant.
Washington, meanwhile, will suspend for one year new Entity List restrictions and measures targeting China's maritime logistics and shipbuilding sectors, Bessent said. Trade experts said the deal provided a temporary reprieve from escalating tensions but warned it fell short of a lasting solution.
"The tariff cut in exchange for a promised fentanyl crackdown buys temporary calm - not a structural reset," said Craig Singleton of the Foundation for Defense of Democracies.
Muted market reaction
Global markets showed little reaction to the Busan summit. Major Asian indexes and European futures fluctuated between small gains and losses, while U.S. soybean futures weakened slightly.
US Senate Democratic leader Chuck Schumer dismissed Trump's announcement, posting on X that "Trump folded on China."
The cordial meeting at a South Korean air base, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum, lasted about 90 minutes.
Xi told Trump it was normal for the two countries to have frictions, adding that "China's development and rejuvenation are not incompatible with President Trump's goal of 'Making America Great Again'." The two sides also agreed to pause tit-for-tat port fees on shipping. Trump later said China would begin purchasing US energy, hinting at a major deal tied to the proposed $44-billion Alaska LNG project.
Trump said he plans to visit China in April before hosting Xi in the United States. Chinese state media framed the meeting as a victory for Xi's leadership, quoting him as saying Beijing had "the confidence and capability to navigate all kinds of risks and challenges."
The deal largely resets relations to their status before Trump's "Liberation Day" tariff offensive in April, leaving only Brazil and India still subject to higher duties. However, analysts cautioned the truce remains fragile. Trump said he did not discuss Nvidia's Blackwell AI chip or Taiwan - two flashpoints in US.-China relations.
The face-to-face meeting in the South Korean city of Busan - their first since 2019 - capped Trump's whirlwind Asia tour, during which he also touted trade breakthroughs with South Korea, Japan and Southeast Asian nations.
According to Beijing, the deal also included a US pledge to delay for one year a new measure - opposed by China - that would bar thousands of Chinese firms from accessing US technology if partly owned by sanctioned companies.
"It was an amazing meeting," Trump told reporters aboard Air Force One, calling the talks a "12 out of 10." He said tariffs on Chinese imports would be reduced to 47% from 57%, by halving to 10% the rate on goods linked to fentanyl precursor chemicals.
Trump said Xi had vowed to work "very hard to stop the flow" of fentanyl, the deadly synthetic opioid driving US overdose deaths. China's commerce ministry said it would pause recently unveiled export controls on rare earths - key minerals used in cars, planes, and weapons - for one year.
Trump added that China would buy U.S. oil and gas, while Bessent noted Xi had expressed interest in a new US pipeline being developed in Alaska, though details were scant.
Washington, meanwhile, will suspend for one year new Entity List restrictions and measures targeting China's maritime logistics and shipbuilding sectors, Bessent said. Trade experts said the deal provided a temporary reprieve from escalating tensions but warned it fell short of a lasting solution.
"The tariff cut in exchange for a promised fentanyl crackdown buys temporary calm - not a structural reset," said Craig Singleton of the Foundation for Defense of Democracies.
Muted market reaction
Global markets showed little reaction to the Busan summit. Major Asian indexes and European futures fluctuated between small gains and losses, while U.S. soybean futures weakened slightly.
US Senate Democratic leader Chuck Schumer dismissed Trump's announcement, posting on X that "Trump folded on China."
The cordial meeting at a South Korean air base, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum, lasted about 90 minutes.
Xi told Trump it was normal for the two countries to have frictions, adding that "China's development and rejuvenation are not incompatible with President Trump's goal of 'Making America Great Again'." The two sides also agreed to pause tit-for-tat port fees on shipping. Trump later said China would begin purchasing US energy, hinting at a major deal tied to the proposed $44-billion Alaska LNG project.
Trump said he plans to visit China in April before hosting Xi in the United States. Chinese state media framed the meeting as a victory for Xi's leadership, quoting him as saying Beijing had "the confidence and capability to navigate all kinds of risks and challenges."
The deal largely resets relations to their status before Trump's "Liberation Day" tariff offensive in April, leaving only Brazil and India still subject to higher duties. However, analysts cautioned the truce remains fragile. Trump said he did not discuss Nvidia's Blackwell AI chip or Taiwan - two flashpoints in US.-China relations.
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