Trump, Xi hold high-stakes summit in South Korea amid escalating trade war
Trump and Xi met in Busan for their first summit since 2019, seeking a breakthrough in the US-China trade war. Talks focused on tariffs, rare earth exports, and fentanyl controls, with limited expectations for a broader security or Taiwan discussion.
Seoul: US President Donald Trump and Chinese President Xi Jinping met on Thursday for a high-stakes summit that will be watched closely for signs of a reprieve in the two countries’ escalating trade war marked by tit-for-tat tariffs.
The two leaders met for the first time since 2019 at Naraemaru, a reception hall inside an Air Force base in the southeastern city of Busan, shortly after Xi arrived in the country for a three-day state visit. Trump arrived at the venue beforehand after departing the nearby city of Gyeongju, the venue of the Asia-Pacific Economic Cooperation (APEC) gatherings this week, earlier in the day.
“We’re going to have a very successful meeting,” Trump said as the two leaders posed for photos ahead of their talks. “But he’s a very tough negotiator. That’s not good,” he quipped.
Trump added the two sides could sign a trade deal. At stake at the Trump-Xi summit is a potential agreement that will see China hold off on tightened export controls on rare earths for a year in exchange for the United States canceling its planned imposition of an additional 100 per cent tariff on Chinese goods starting November 1.
A framework agreement on such a deal was reportedly reached between officials of the two sides over the weekend. The world’s two largest economies have other trade issues to resolve as well. China stopped buying soybeans from the US this year, hurting American farmers who are a key Trump voter base.
The US has separately used tariffs to pressure China to stop the flow of fentanyl. Trump indicated on Wednesday that he would lower the fentanyl-related tariffs, which currently stand at 20 per cent, in exchange for Beijing’s commitment to curbing exports of chemicals that can be used to make fentanyl.
The trade war between the two superpowers saw US tariffs on Chinese goods climb to 145 per cent in April, while Chinese tariffs on US goods rose to 125 per cent. Following a truce reached at high-level trade talks in May, the taxes have currently been lowered to a total of 50 per cent on Chinese goods and 10 per cent on US goods.
Trump has repeatedly expressed optimism about his upcoming summit with Xi. “Very much looking forward to my meeting with President Xi of China,” he wrote on Truth Social on Thursday. “It will take place in a few hours!” Few observers expect the summit to end the trade war between the two countries, but any agreement that eases the uncertainty surrounding their punitive measures could be a first step.
Security issues are also a large component of the US-China rivalry as Beijing appears to flex its military muscle on the continent. Chief among them are North Korea’s evolving nuclear weapons programme, China-Taiwan tensions and Beijing’s territorial claims in the South China Sea, Yonhap news agency reported.
Trump indicated Wednesday that Taiwan may not feature prominently in his talks with Xi. “I don’t know that we’ll even speak about Taiwan,” he told reporters aboard Air Force One. “I’m not sure. He may want to ask about it. There’s not that much to ask about. Taiwan is Taiwan.”
