U.S. President Donald Trump and Chinese President Xi Jinping held their first face-to-face meeting in years on Thursday, marking a significant diplomatic moment in efforts to ease tensions between the world’s two largest economies.

The talks, held in Busan, South Korea, produced several short-term agreements on trade, drug control, and rare-earth exports. Trump announced a reduction in tariffs on Chinese goods, lowering duties on items linked to fentanyl precursors from 20% to 10% and cutting the overall average tariff rate from 57% to about 47%.

In return, China pledged to ramp up efforts to curb the illicit flow of fentanyl and related chemicals into the United States. Beijing also agreed to resume large-scale purchases of American agricultural products, a move expected to provide relief to U.S. farmers hit hard by recent trade tensions.

One of the most notable developments was China’s decision to suspend its export restrictions on rare-earth minerals for one year. The critical materials, used in electronics and defense manufacturing, have been a major point of contention in recent years.

Trump hailed the outcome as “an amazing meeting,” saying the discussions were “better than expected.” He described the temporary deals as “a big win for both sides,” while Xi emphasized the need for “mutual respect and practical cooperation.”

Analysts described the meeting as a limited truce rather than a major breakthrough. While it helped calm global markets and sent commodity prices rising, core disputes over technology transfers, Taiwan, and strategic rivalry remain unresolved.

For now, the agreements are expected to ease trade pressures and signal a cautious thaw in U.S.-China relations, though both sides face the challenge of turning the promises into lasting progress.