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US-China Trade Deal: US President Donald Trump and Chinese President Xi Jinping wrapped up their 1.4-hour meeting in Busan, South Korea, on Thursday, marking a major step toward easing trade tensions between Washington and Beijing.

The talks covered a wide range of issues, including tariffs, technology, rare earths, and fentanyl control, signalling renewed momentum in global trade diplomacy.

Trump announced that tariffs on Chinese goods would be cut to 47% from 57%, following what he called an “amazing meeting” with Xi. He said “a lot of decisions were made” on key trade and economic matters, describing the talks as “very successful.”

The US President confirmed that China would immediately resume large-scale purchases of American soybeans, a major relief for US farmers affected by prolonged trade restrictions.

“China is going to start buying a lot of soybeans again, and right away,” Trump said.

One of the most significant outcomes of the meeting was the agreement on rare earth materials, crucial for global electronics and electric vehicle production.

Trump declared that “all the rare earth issues have been settled,” adding that the deal will be valid for one year and renegotiated annually.

This marks a turning point in the US-China standoff that had disrupted supply chains for critical minerals. The agreement is expected to ease concerns in industries dependent on rare earth exports from China.

Trump said Xi agreed to “work very hard to stop fentanyl,” leading Washington to cut fentanyl-related tariffs to 10%.

The leaders also discussed cooperation on semiconductors, with Beijing expected to hold talks with US chipmakers such as Nvidia, although Trump clarified that advanced “Blackwell chips” were not part of the discussion.

The two presidents also touched upon global issues, including Ukraine, agreeing to “work together to get something done,” while the topic of Taiwan “never came up,” according to Trump.

Trump announced plans to visit China in April 2026, with Xi expected to visit the US later. He said the talks had cleared “several roadblocks” and hinted at “major outcomes” to follow.

Chinese officials described the dialogue as “intense but constructive,” while Trump hailed it as “a big step toward fair trade.”

The Busan meeting marks the most substantial easing of US–China trade tensions since Trump’s return to office, setting the stage for a potential new era of economic cooperation between the world’s two largest economies.

Anubhav Maurya is a Senior Sub-Editor at Zee Business, focusing on the stock market, personal finance, corporate news, and related sectors.

He has previously worked wi