“I’ve got a lot of respect for President Xi and I think we’re going to come away with a deal,”

Trump told reporters on Air Force One before landing in Tokyo.

Negotiators from Washington and Beijing agreed on a framework to pause higher U.S. tariffs and Chinese export controls on rare earth minerals, a development that boosted Asian markets.

In Tokyo, Trump met Emperor Naruhito at the Imperial Palace after a night tour of the city illuminated in U.S. colors. Security was tight following an arrest outside the U.S. embassy, and a protest was planned downtown.

Japan has pledged $550 billion in new investments in exchange for tariff relief. Prime Minister Sanae Takaichi is set to announce additional deals on U.S. imports and shipbuilding on Tuesday. During a weekend call, she told Trump that strengthening their alliance was her “top priority.”

Trump said he was eager to meet Takaichi, calling her “a close ally” of his late friend Shinzo Abe and adding:

“I think she’s going to be great.”

Talks will also cover defenCe cooperation, as Japan plans its largest military expansion since World War II. Trump has urged Tokyo to contribute more to its security amid China’s growing assertiveness.

Trump will travel to South Korea next to meet President Lee Jae Myung before a highly anticipated meeting with Xi, where both sides hope to ease trade tensions, though major breakthroughs are not expected.

Earlier this year, the U.S. had restricted ethane and several other exports to China amid accusations that China was delaying shipments of rare earth minerals critical to industries such as automotive manufacturing. The latest action comes after the U.S. and China resolved issues related to rare earth minerals and magnets shipments last week.

Last week, the Commerce Department began easing the restrictions by notifying ethane producers and traders, including Satellite Chemical USA and Vinmar International, that they could load ethane on vessels bound for China but were not authorized to unload the shipments there without further approval.

Ethane shipments to China had stopped in June following the imposition of the license rule, dropping from 257,000 barrels per day in May, according to tracking data. Nearly half of U.S. ethane exports, which is derived from shale gas and mainly used as a raw material in petrochemicals, are sent to China. The suspension of shipments was expected to negatively impact both U.S. producers and Chinese petrochemical companies.

Chinese firms prefer ethane as a feedstock because it is more cost-effective than alternatives like naphtha. Meanwhile, U.S. producers rely on Chinese demand for natural gas liquids, especially as domestic supply exceeds consumption.

As of Wednesday, at least eight ships were en route to China after being delayed along the U.S. Gulf Coast since June due to export restrictions. Some vessels that usually travel between the U.S. and China diverted to other markets, such as India, during the export halt.