Thu, 30 Oct 2025

Thu, 30 Oct 2025 Tit-for-tat tariffs, a shaky truce and turmoil: How we got to the Trump-Xi meeting

US President Donald Trump and Chinese leader Xi Jinping met on Thursday to discuss a trade deal.
The US-China trade war has been ongoing since April, with both sides imposing tariffs on each other's goods. In a tit-for-tat move, Trump imposed 100% levy on Chinese goods but this may not come into effect according to Treasury Secretary Scott Bessent. Key issues in the talks include access to critical minerals and semiconductors that underpin advanced manufacturing, as well as national security concerns over TikTok's US operations. The meeting took place at the Gimhae air base in South Korea where Trump and Xi exchanged handshakes after an hour-long meeting without making any public remarks on what was discussed. Economist Prof Tim Harcourt says this meeting could reset globalisation in a post-Covid era. Background: China's President Xi Jinping has been willing to take the pain of tariffs but also inflicted some, targeting key vote base of Trump - farmers. Beijing did not back down and instead rallied its industries around domestic manufacturers like Alibaba and Huawei. US-China relationship strained over access to advanced chips that go into smartphones and AI applications. Nvidia, world's most valuable company, was a sticking point with the US imposing tech curbs. Xi wants strong hand in talks, goes on the offensive by tightening controls over rare earth exports. China has near-monopoly in processing critical minerals for electronics, green energy tech and military equipment. Recent developments: US and Australia, Malaysia and Japan have agreed to secure access to rare earths outside China as insurance against US dependence on Chinese resources. Beijing delayed its rare earth export curbs in exchange for lower tariffs, according to analysts. Expectations from talks: China will delay its rare earth export curbs in exchange for some relief from chip sales restrictions. The final green light on the TikTok deal is expected to be a win for Trump and American farmers. Analysts believe fragile deal could "narrow the risk" of any unexpected decisions in months ahead but warns no truce between US and China will last forever.
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