American President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, today in what both sides described as a breakthrough toward steadier trade ties, though no formal agreement has yet been signed.

Speaking to reporters aboard Air Force One on the way back to Washington, Trump rated the meeting: “a 12 out of 10,” while Beijing called the results: “hard-won.” Both governments outlined parallel concessions that together amount to the most significant easing in tensions since 2019.

According to Trump: “A trade deal could be signed pretty soon”.

Trump announced that the United States (US) would cut its so-called: “fentanyl tariff” on Chinese imports from 20% to 10%, a measure originally aimed at curbing the flow of chemicals used to make the opioid. In return, China said it would begin “the purchase of massive amounts of soybeans” and other American farm goods, a key demand from Washington and a boost for US farmers hit by earlier tariffs.

Beijing also promised to make it easier for US companies to buy rare earth minerals, which are crucial inputs for electric vehicles and electronics, while the United States agreed to suspend an expansion of export-control rules on foreign firms – that had targeted Chinese technology producers.

For Beijing, the talks were a signal that dialogue with Washington remains open. For Trump, they offered a chance to reassure markets that the world’s two largest economies may yet pull back from confrontation, even if, for now, the ink is not yet dry.

Frans Cronje told The Common Sense that: “the progress made between China and America is an extremely positive indicator for the global economy...we’ve long maintained that the Trump administration is not fundamentally wedded to tariffs as economic mechanisms but employ these chiefly for strategic leverage in defence of America’s broader strategic interests...the risk of tariffs scuppering the global economy has long been overdone...the announcement earlier today is an example of exactly what we’ve been talking about”.