U.S. President Donald Trump and Chinese President Xi Jinping have reached a tentative trade agreement that includes tariff reductions, renewed agricultural purchases, and cooperation on curbing the illicit fentanyl trade, marking the most significant thaw in relations between Washington and Beijing since their last meeting in 2019.

The two leaders met face-to-face in the South Korean port city of Busan on Thursday, concluding Trump’s week-long Asia tour, which also featured new trade agreements with Japan, South Korea, and Southeast Asian nations.

Under the deal, Trump said the United States would reduce tariffs on Chinese imports to 47 percent from 57 percent, including a halving of duties on chemicals linked to the fentanyl supply chain.

In exchange, Xi pledged to intensify efforts to stem the production and export of fentanyl precursors—synthetic opioids that have driven record overdose deaths in the United States.

Calling the talks “an amazing meeting” and rating them “a 12 out of 10,” Trump told reporters aboard Air Force One that the two sides had made “real progress” toward stabilising trade ties.

China’s commerce ministry said Beijing would suspend for one year newly announced export controls on rare earth elements—materials critical to advanced technologies and defence systems.

The United States, in turn, agreed to delay for a year new restrictions barring Chinese firms part-owned by sanctioned entities from accessing U.S. technology.

China also committed to resuming large-scale purchases of U.S. soybeans—12 million metric tons through January, and 25 million tons annually for the next three years—alongside additional imports of U.S. oil and gas.

U.S. Treasury Secretary Scott Bessent said China had approved an agreement to bring TikTok under U.S.-controlled ownership and expressed interest in participating in a new U.S. energy pipeline in Alaska. Washington will also suspend measures targeting China’s maritime logistics and shipbuilding sectors during the one-year truce period.

Trade analysts described the accord as a temporary easing of tensions rather than a strategic reset. Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, said the tariff cut “buys temporary calm but not a structural reset.”

“Each side is calibrating tension to avoid collapse while keeping escalation on the table,” he said. “Nothing fundamental changed, and the cycle of coercion will resume the moment one side feels shortchanged.”

The deal provides a brief reprieve after years of friction between the world’s two largest economies, but analysts caution that unresolved disputes over technology access, industrial subsidies, and national security could reignite the trade conflict in the months ahead.