Speaking to reporters aboard Air Force One after the talks with Trump on Wednesday night, Trump described the meeting as a major success, saying the United States was now on track to finalise a trade deal with China 'pretty soon.'
'I guess on the scale from 0 to 10, with ten being the best, I would say the meeting was a 12,' Trump said. 'I think it was a 12.'
Under the new measures, tariffs imposed earlier this year as punishment for China's alleged role in the export of chemicals used to make fentanyl will be cut from 20% to 10%. This reduces the overall tariff rate on Chinese goods from 57% to 47%.
Trump said Beijing had agreed to lift restrictions on the export of rare earth minerals, vital components for manufacturing high-tech products such as electric vehicles, fighter jets, and smartphones, and to resume purchases of American soybeans.
Trade deal 'within reach'
The two leaders met for 100 minutes in the port city of Busan, around 76 kilometres south of the main venue for the Asia-Pacific Economic Cooperation (APEC) summit. Their discussion, which Trump later described as 'a turning point,' also touched on technology exports, with the U.S. president confirming that chipmaker Nvidia would begin talks with Chinese officials about selling advanced semiconductors.
Trump said he would visit China in April, while Xi is expected to make a reciprocal trip to the U.S. later in the year.
'We have not too many major stumbling blocks,' Trump told journalists, expressing confidence that a broader trade agreement could be signed soon.
Signs of a thaw
The announcement comes after months of renewed tension between Washington and Beijing, as both countries sought to assert dominance in global manufacturing, artificial intelligence development, and geopolitical influence. Trump's use of tariffs to pressure China had prompted retaliatory export limits from Beijing, particularly on rare earths, minerals critical to the U.S. defence and technology sectors.
Analysts said Thursday's breakthrough reflects a shared desire to cool tensions and stabilise economic relations after a volatile year.
Beijing has not issued an official statement on the outcomes of the meeting. However, at the start of the talks, Xi struck a conciliatory tone, saying through a translator that 'it is normal for the two leading economies of the world to have frictions now and then.'
The easing of tariffs and resumption of rare earth exports have already buoyed investor confidence, with U.S. markets climbing on Thursday amid optimism for a trade framework.
Officials from both countries had met earlier in Kuala Lumpur to prepare for the summit, reaching what they described as a 'preliminary consensus.' U.S. Treasury Secretary Scott Bessent later called the talks 'a very successful framework.'
Despite the positive signals, several sticking points remain unresolved, including the expected agreement on the sale of Chinese-owned TikTok's U.S. operations. Analysts say that without clarity on that front, complete normalisation of trade relations remains uncertain.
Meanwhile, Trump's shifting tariff policy has also raised questions about long-term strategy. Earlier this year, he threatened to raise tariffs on Chinese goods to 145% before abandoning the plan amid market backlash. Just weeks ago, he warned of a 100% import tax in response to China's rare earth restrictions, an escalation now seemingly averted.
For China, lifting the rare earths blockade is a significant gesture, given its global dominance in processing the minerals. The move may signal Beijing's intent to ease global concern about its leverage over critical supply chains.
Wycliffe Nyamasege
