US President Donald Trump and Chinese leader Xi Jinping met for the first time in six years, offering cautious hope that tensions between the world’s two largest economies might ease. Trump described the talks in South Korea as “amazing,” while Beijing said both sides had reached a consensus on addressing “major trade issues.” Relations have been tense since Trump imposed heavy tariffs on Chinese imports, prompting swift retaliation. A brief truce in May failed to resolve deeper disputes.
While no formal trade deal emerged, both leaders signaled movement toward compromise. Negotiators have spent months trying to settle long-standing disputes over trade and technology. Trade agreements normally take years, but Trump’s aggressive tariff approach has forced faster responses. Many of the affected countries are in Asia, where Trump has spent the past week advancing his economic agenda.
China lifts rare earth restrictions and resumes US farm imports
China agreed to remove export limits on rare earth minerals, essential for smartphones, electric vehicles, and defense systems. The move marked a symbolic victory for Trump. Speaking aboard Air Force One, he said China would immediately begin buying “tremendous amounts of soybeans and other farm products.” Retaliatory tariffs from Beijing had nearly halted US soybean imports, damaging American farmers — a key segment of Trump’s voter base.
US Treasury Secretary Scott Bessent said China would buy 12 million metric tonnes of soybeans this season and commit to at least 25 million tonnes annually for the next three years. Following the meeting, Washington announced plans to ease some tariffs on chemicals linked to fentanyl production, a drug issue Trump has repeatedly blamed China, Canada, and Mexico for.
Sean Stein, president of the US-China Business Council, said progress on rare earths and tariffs represented the most meaningful outcome of the talks. He noted it gave businesses stability to work with both governments on long-standing trade challenges. Yet most tariffs remain, leaving US importers paying more than 40 percent in taxes on Chinese goods.
Beijing also gained diplomatic openings. Trump revealed that Xi could soon meet Jensen Huang, CEO of US chip maker Nvidia, central to the dispute over AI technology. China seeks advanced processors, while Washington restricts exports for security reasons. Xi also invited Trump to visit China in April, signaling warmer ties. Still, there was no progress on TikTok, whose US operations remain under scrutiny.
Xi stays measured while Trump presses for results
The meeting highlighted clear differences in leadership style. Xi remained calm and precise, delivering only prepared remarks. China approached the talks from a position of strength, having diversified trade partners and reduced dependence on the US. Afterward, Xi said both countries would pursue results that act as a “reassuring pill” for their economies.
Trump appeared more tense than during earlier stops on his Asia tour. Gone were the grand palaces and ceremonial parades. The leaders met inside a guarded airport building surrounded by police and media. Despite the modest setting, the 80-minute discussion became the defining moment of Trump’s trip.
Henry Wang, a former adviser to China’s State Council, said the talks “went very well.” While no trade deal was finalized, he said both leaders had established “a framework and structure” for future cooperation. He described the outcome as “a good start” toward stabilizing one of the world’s most important and fragile economic relationships.
