BUSAN, South Korea: U.S. President Donald Trump said he had reached an agreement with Chinese President Xi Jinping to cut tariffs on Chinese imports in exchange for Beijing's pledge to curb fentanyl exports, resume U.S. soybean purchases, and maintain rare earth supplies.

The deal was struck during a nearly two-hour meeting between the two leaders in Busan, South Korea. It was their first face-to-face encounter since 2019, and it capped Trump's fast-paced Asia tour, which included new trade pacts with Japan, South Korea, and Southeast Asian nations.

"I thought it was an amazing meeting," Trump told reporters aboard Air Force One after departing Busan, calling the talks a "12 out of 10."

Under the agreement, tariffs on Chinese goods will fall to 47 percent from 57 percent, with rates on fentanyl-related imports cut to 10 percent from 20 percent. Trump said the reduction was a sign of trust in Beijing's promise to tackle the flow of synthetic opioids, which have fueled a deadly addiction crisis in the U.S. "I believe they are really taking strong action," he said.

The announcement sparked volatile trading in global markets, with Asian and European stocks swinging between gains and losses. China's Shanghai Composite Index slipped from a 10-year high, while U.S. soybean futures weakened as details of the deal emerged.

"Markets were likely hoping for a complete removal of the fentanyl tariff," said Kyle Rodda, senior market analyst at Capital.com. "That could explain the ambivalence in the price action."

The Busan meeting followed months of tense negotiations and speculation over a new phase in the U.S.-China trade war, which has disrupted supply chains and weighed on global growth. Trump said China would begin buying "tremendous amounts" of American soybeans and farm goods "starting immediately."

Only India and Brazil now face higher U.S. tariff rates among major trading partners.

During the talks, Xi Jinping said it was normal for the two superpowers to have "frictions now and then," adding that recent negotiations had led to a "fundamental consensus" on addressing mutual concerns. "I am willing to continue working with President Trump to lay a solid foundation for China-U.S. relations," he said.

In return for tariff relief, Beijing sought U.S. concessions on export controls for advanced technology and the easing of port fees on Chinese ships, part of Washington's broader push to counter China's global influence in manufacturing and logistics.

Trump did not commit to any specific rollbacks but confirmed that rare earth exports from China will continue, averting a potential supply shock in industries from electric vehicles to defense systems. "They're not going to impose the rare earth controls," he said.

The two leaders avoided the topic of Nvidia's Blackwell AI chip after Trump had previously suggested that he might help the company export a scaled-down version to China. "We didn't discuss it," Trump clarified.

The U.S. president said his Asia trip yielded "incredible trade results," with new deals signed in Japan and Southeast Asia to diversify rare earth supplies. However, analysts say reducing China's dominance in that sector could take years.