U.S. President Donald Trump agreed with President Xi Jinping to trim tariffs on China in exchange for Beijing cracking down on the illicit fentanyl trade, Trump said.
Trump’s face-to-face talks with Xi in the South Korean city of Busan, their first since 2019, marked the finale of a whirlwind Asia trip during which he also highlighted trade breakthroughs with South Korea, Japan, and Southeast Asian nations.
“It was an amazing meeting,” Trump told reporters aboard Air Force One shortly after leaving South Korea, rating the talks a “12 out of 10.”
He said tariffs on Chinese imports would be cut to 47% from 57%, by halving to 10% the rate of tariffs related to trade in fentanyl precursor drugs.
Trump added that Xi will work “very hard to stop the flow” of fentanyl, a deadly synthetic opioid that is the leading cause of overdose deaths in the United States.
China agreed to pause export controls unveiled this month on rare earths, elements essential for cars, planes, and weapons that have become Beijing’s most potent leverage in its trade war with the United States.
The two sides also reached consensus on expanding agricultural trade and agreed to work on issues surrounding the short video app TikTok, which Trump seeks to bring under U.S.-controlled ownership.
Muted response from global markets
The reaction to the detente was muted, with major Asian indexes and European futures swinging between gains and losses.
Ahead of the meeting, markets from Wall Street to Tokyo had hit records on hopes of a breakthrough in the trade war, which has disrupted supply chains and shaken global business confidence.
Meanwhile, China will begin purchasing U.S. energy, Trump said in a post on Truth Social, hinting at a major deal in Alaska linked to a proposed $44-billion LNG pipeline promoted by his administration.
The White House signaled it hopes the summit will be the first of several meetings between the leaders in the coming year.
Trump added that he plans to travel to China in April before receiving Xi in the United States.
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U.S. President Donald Trump said he sees progress between Israel and Lebanon after talks with Netanyahu, while Hezbollah has rejected a new ceasefire proposal and Israel has ruled out a troop withdrawal.
Israel and Lebanon have agreed to implement a ceasefire after U.S.-backed talks in Washington. The deal requires Hezbollah to halt attacks and withdraw from southern Lebanon, while both sides will resume direct talks later this month aimed at reaching a broader agreement.
A series of signals from Washington, including congressional testimony, a U.S. Embassy statement and a senior diplomat's visit to Tbilisi, has given Georgia's ruling party reason to declare a diplomatic reset. But Washington's message is more nuanced than Tbilisi is suggesting.
Afghan and Uzbek business officials have discussed ways to expand trade, ease transit bottlenecks and address customs challenges facing traders, according to the Afghanistan Chamber of Commerce and Investment (ACCI).
Severe Tropical Storm Jangmi brought heavy rain, power cuts and transport disruption across Japan on Wednesday (3 June) as it tracked towards the greater Tokyo region.
Thousands of people have taken to the streets in Albania in recent days to protest against a luxury tourism project linked to Jared Kushner, the son-in-law of U.S. President Donald Trump, and his wife Ivanka Trump.
Armenia’s parliamentary election comes at a defining moment for the South Caucasus, a region reshaped by the Garabagh conflict and broader shifts in Russia-West relations. The outcome is increasingly seen as a signal of Armenia’s future foreign policy direction and the regional balance of power.
Global weather forecasters predict a strong El Niño will develop in the second half of 2026, bringing hotter, drier conditions to much of Asia while increasing rainfall in parts of North and South America.
Bolivia’s Defence Minister has resigned amid widening unrest over government austerity measures, which have led to protesters blocking roads into the country’s two largest cities.
China has criticised planned maritime boundary discussions between Japan and the Philippines, arguing that the waters involved fall within an area where Beijing claims maritime rights and jurisdiction.
U.S. President Donald Trump will attend next month's NATO leaders' summit in Türkiye, ending weeks of uncertainty over whether he would take part in a gathering expected to focus on the future of the alliance.
All 27 European Union (EU) member countries have agreed to begin the first set of talks with Ukraine and Moldova about joining the political and economic bloc.
Germany's foreign minister Johann Wadephul has suggested that Berlin's strong backing of Ukraine and its close ties with Israel may have contributed to its failure to secure a seat on the United Nations Security Council.
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