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Trump and Xi Set to Strike Tentative Truce as US-China Trade War Drags On
Trump and Xi are poised to announce a limited deal to cool US-China tensions — but experts warn the deep economic and political rift between the two powers remains unresolved.
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by Muhammad Hashir
2025-10-29
Trump and Xi Set to Strike Tentative Truce as US-China Trade War Drags On

As US President Donald Trump and Chinese leader Xi Jinping prepare to meet for the first time since 2019, hopes are rising for a deal to ease tensions between the world’s two largest economies — but expectations remain modest.

The two leaders are expected to meet on Thursday in South Korea on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju. Both Washington and Beijing have signaled readiness to de-escalate their trade and diplomatic confrontation, though few expect a breakthrough.

According to analysts, the proposed deal will likely focus on avoiding further escalation rather than rolling back existing tariffs or restrictions. Measures under discussion reportedly include China delaying its planned export controls on rare earth elements and the US shelving Trump’s threatened 100% tariff on Chinese goods.

US Treasury Secretary Scott Bessent hinted that the agreement could also see China increase purchases of US soybeans, strengthen cooperation on combating fentanyl-related substances, and finalize a deal over TikTok’s ownership dispute.

Still, the broader trade war that began during Trump’s first term remains firmly in place. Average US tariffs on Chinese goods hover above 55%, while China’s duties on American products stand around 32%. Both sides have blacklisted dozens of companies, citing national security and market fairness concerns.

China’s exports to the US fell 27% in September, marking the sixth consecutive monthly decline, while imports of American goods dropped 16%.

Experts say Thursday’s summit could bring temporary relief but not resolution.
“I have modest expectations for this meeting,” said Deborah Elms, head of trade policy at the Hinrich Foundation. “We haven’t seen the end of tariffs, export controls, and new restrictions.”

Wang Wen of Renmin University said the “structural contradictions” between Washington and Beijing remain unresolved. “China’s strength is increasing and will surpass that of the United States in the future,” he said.

Others, like Georgetown University’s Dennis Wilder, believe the summit could yield “positive tactical results,” paving the way for more substantive talks when Trump visits China next year.

Despite talk of “mutual respect” from Xi and Trump’s insistence the US has been “ripped off” by China, both sides appear entrenched in a strategic rivalry that extends far beyond trade.

For now, Thursday’s meeting may mark a pause in the confrontation — not its end.
Tagged:

USChinaRelations

TradeWar

TrumpXiSummit

APEC2025
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