U.S. President Donald Trump and Chinese President Xi Jinping concluded a face-to-face meeting on Thursday in Busan, South Korea, their first since 2019, with an agreement to reduce tariffs, resume U.S. soybean purchases, maintain rare earth exports, and cooperate on curbing fentanyl flows into the United States. The summit capped Trump’s week-long Asia tour, which also included negotiations with South Korea, Japan, and Southeast Asian nations.

Under the deal, tariffs on Chinese imports linked to fentanyl precursor chemicals will be halved to 10 percent, while overall tariffs are cut to 47 percent from 57 percent. Beijing has agreed to purchase 12 million metric tons of U.S. soybeans through January and 25 million tons annually over the next three years. China will also pause newly imposed export controls on rare earths for a year, according to the Chinese commerce ministry.

The agreement includes a temporary suspension of U.S. Entity List restrictions that limit Chinese companies’ access to U.S. technology, as well as measures targeting China’s maritime logistics and shipbuilding sector. Washington and Beijing additionally agreed to pause port fees designed to restrict competition in shipping.

Trump described the talks as “an amazing meeting” and rated them “12 out of 10,” while Xi framed the engagement as proof that China’s development and U.S. economic goals are not incompatible.

Treasury Secretary Scott Bessent confirmed further elements of the deal, including agreements on TikTok’s U.S.-controlled ownership, and new U.S. energy purchases from China. Xi also expressed interest in a proposed U.S. pipeline in Alaska, although details were not disclosed.

Analysts cautioned that the agreement is a short-term truce rather than a structural reset. Many observers noted that China failed to meet commitments under the Phase 1 trade deal signed during Trump’s first term.

Several contentious issues were left unaddressed. Nvidia’s Blackwell AI chip and the status of Taiwan were not discussed. While the agreement restores ties to levels prior to April’s trade escalation, analysts warn that the truce is fragile. The deal buys roughly a year of reduced tension, but deeper structural disagreements over technology access, strategic minerals, and geopolitical influence remain unresolved.