U.S. President Donald Trump announced a reduction in tariffs on Chinese imports related to fentanyl following a meeting with Chinese President Xi Jinping in South Korea. The tariffs will decrease from 20% to 10%, effective immediately. This change lowers the overall duties on Chinese goods from 57% to 47%.

During a press briefing aboard Air Force One, Trump described the meeting with Xi as "amazing," rating it a 12 on a scale of 1 to 10. He stated that significant decisions were made, including a one-year agreement regarding rare earth minerals, which are essential for producing various technologies, including semiconductors and defense systems.

The agreement means that China will not impose new restrictions on rare earth exports for one year, alleviating concerns about potential 100% tariffs on these materials. However, existing restrictions on rare earths, announced earlier, remain in effect.

In exchange for the tariff reduction, Trump indicated that China would take substantial steps to curb the flow of fentanyl into the U.S. He also mentioned that China would resume purchasing large quantities of American soybeans and other agricultural products.

China's Ministry of Commerce confirmed the consensus on cooperating regarding fentanyl and agricultural trade. The ministry also noted that both countries would work together to address issues related to TikTok.

Market reactions included a 1.6% drop in soybean futures on the Chicago exchange, while China's CSI Rare Earths Industry Index rose by over 2%.

Trump emphasized that the discussions included various topics, such as the sale of Nvidia chips to China, although he did not specify details about the most advanced chips. He also mentioned that Taiwan was not part of the discussions.

Looking ahead, Trump plans to visit China in April, with Xi expected to visit the U.S. afterward. The meeting marked the first encounter between the two leaders in six years and lasted approximately one hour and 40 minutes.

In a statement released by Chinese state media, Xi called for ongoing dialogue and regular communication between the two nations. Both leaders agreed to enhance collaboration on trade, energy, and economic issues, as well as to promote cultural exchanges.

Despite the positive developments, experts caution that underlying tensions between the U.S. and China remain unresolved. Issues such as China's industrial practices and excess capacity continue to pose challenges.

As the two nations navigate their complex relationship, the recent agreements signal a potential thaw in tensions, although the fragility of the truce remains a concern.

The meeting concluded with both leaders expressing a desire for cooperation, with Trump referring to Xi as "an old friend" and Xi emphasizing that China's growth ambitions would not undermine U.S. interests.

This story is developing, and further updates are expected as more information becomes available.