US President Donald Trump said on Thursday he had agreed to reduce tariffs on China to 47 per cent from 57 per cent in exchange for Beijing resuming US soybean purchases, maintaining exports of rare earth elements, and curbing the illicit trade of fentanyl.

His remarks came after face-to-face talks with Chinese President Xi Jinping in the South Korean city of Busan — their first meeting since 2019 — marking the finale of Trump’s whirlwind Asia tour during which he claimed trade breakthroughs with South Korea, Japan and Southeast Asian nations.

“I thought it was an amazing meeting,” Trump told reporters aboard Air Force One shortly after departing Busan. “They’re not going to impose the rare earth controls,” he said, adding that tariffs on Chinese imports would be cut to 47per cent from 57per cent.

Trump said Washington would also reduce tariffs on Chinese goods related to fentanyl to 10 per cent from 20 per cent after Beijing pledged to intensify efforts to curb the drug’s flow into the United States.

“Xi will work very hard to stop the flow,” Trump said. “The tariff was reduced because I believe they are really taking strong action.”

The US President said the two countries had agreed on a one-year deal ensuring continued rare earth exports from China — a key global supplier of the 17 critical elements used in electronics, vehicles and weapons — and that the arrangement would likely be extended.

“All of the rare earth has been settled,” Trump said. “That’s for the world, worldwide. There is no roadblock at all on rare earth. That will hopefully disappear from our vocabulary for a little while.”

Trump said China would “purchase tremendous amounts” of US soybeans and other farm products “starting immediately”.

US Trade Representative Jamieson Greer, speaking aboard Air Force One, said China would not be imposing its proposed rare earth controls after the understanding reached between the two leaders, though he declined to specify whether existing restrictions would also be lifted.

The meeting, held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, lasted nearly two hours. Trump escorted Xi to his car afterwards before receiving a red-carpet send-off at the airport.

Global markets reacted cautiously to the news, with major Asian indexes and European futures swinging between gains and losses. The Shanghai Composite Index (.SSEC) slipped from a 10-year high, while U.S. soybean futures weakened.

The agreement follows months of escalating trade tensions that rattled global supply chains and investor confidence.