In a highly anticipated face-to-face meeting in Busan, South Korea, U.S. President Donald Trump and Chinese President Xi Jinping took a significant step toward easing tensions between the world’s two largest economies. Their encounter, the first in-person meeting since Trump’s return to the White House, has sparked cautious optimism about stabilizing trade relations amid ongoing economic rivalry.
Set against the backdrop of the 2025 Asia-Pacific Economic Cooperation (APEC) Summit, the meeting centered on critical issues such as tariffs, trade restrictions, and rare earth materials vital for modern technology. Trump hailed the dialogue as “amazing” and rated it a “12” out of 10, underscoring the hopeful tone of the discussions despite lingering challenges.
A key outcome involved an agreement to reduce tariffs on Chinese goods from 57% to 47%, alongside China’s commitment to resume purchasing U.S. soybeans—a move that signals a thaw in agricultural trade tensions. Both leaders agreed to cooperate in addressing illegal fentanyl trade and maintain the flow of rare earth exports, essential components in high-tech manufacturing, where China currently dominates global production.
President Xi highlighted the overall resilience of China’s economy, which grew 5.2% in the first three quarters of 2025 despite complex international and domestic pressures. He emphasized that continued collaboration with the U.S. would promote stable development and contribute positively toward global economic growth.
South Korea, hosting the summit, played a diplomatic role by seeking to balance relations between the two superpowers, projecting itself as a mediator fostering dialogue amid a divided global trade environment. Analysts suggest the Trump-Xi meeting could either bridge differences or deepen divides, depending on forthcoming negotiations.
While the agreement represents a fragile truce rather than a comprehensive resolution to the ongoing trade war, it has temporarily eased concerns about escalating conflicts that could severely impact the global economy. Observers caution that fundamental issues, like industrial policy and trade imbalances, remain unresolved.
Trump announced his intention to visit China in April 2026, signaling continued dialogue between the leaders. The global community watches closely, hoping this diplomatic engagement will foster a more stable economic partnership between the U.S. and China.
