Trump, Xi Meet in South Korea With Focus on Trade Deal to Lower Tensions

GYEONGJU, South Korea, Oct 30 – U.S. President Donald Trump and Chinese President Xi Jinping on Thursday began their first in-person talks since the American leader returned to the White House, according to Chinese media, with all eyes on whether they can reach a trade deal to defuse tensions.

The meeting in Busan, which took place before Trump wraps up his three-nation Asia trip and as Xi arrived in South Korea to attend a regional economic summit, is expected to address the trade curbs the world’s two largest economies have implemented against each other since early this year.

Trade tensions between Washington and Beijing recently flared up over China’s new export restrictions on rare earth elements essential for high-tech manufacturing. Trump has also complained about China’s suspension of U.S. soybean imports over the past several months, urging Beijing to resume them.

To pave the way for the summit between the two leaders, high-level officials struck a framework agreement in Malaysia last weekend, with U.S. Treasury Secretary Scott Bessent suggesting an additional 100 percent U.S. tariff Trump had threatened to impose on Chinese imports starting Saturday would be averted.

Bessent also said he expects Beijing to delay the implementation of its rare earth export controls for a year.

On Wednesday, Trump said he is likely to reduce his administration’s 20 percent additional tariff on Chinese goods imposed earlier this year over fentanyl, the leading cause of overdose deaths in the United States.

Trump has repeatedly accused Beijing of taking insufficient steps to stem the flow of fentanyl into the United States. Precursor chemicals made in China are reportedly used to illicitly produce the powerful opioid.

The United States and China slapped tit-for-tat tariffs on each other’s goods earlier this year. Still, they agreed in May to temporarily reduce them from triple-digit rates, and later extended the pause through Nov. 10.

The Treasury chief has also hinted that the current 90-day trade truce is likely to be extended.

In addition to trade and economy, the two leaders may also discuss Russia’s war against Ukraine. Trump has taken issue with China’s continued purchases of Russian oil, saying the proceeds help support Moscow’s war effort.

As for Taiwan, a self-ruled island that China claims as part of its territory, Trump said Wednesday he was unsure whether he would speak about it with Xi. The U.S. leader has rarely discussed the democracy that Washington supports militarily from a security perspective.