Trump and Xi Jinping Discuss Trade War Resolutions at APEC Summit in South Korea

U.S. President Donald Trump and Chinese President Xi Jinping recently met in Busan, South Korea, during the Asia Pacific Economic Cooperation (APEC) summit on October 30, 2025. Their discussions focused on resolving the ongoing trade war, which has impacted the global economy. During the meeting, Trump announced a reduction in tariffs on fentanyl-related products from China to 10%, following talks with Xi Jinping.

President Trump expressed optimism about the discussions with Xi, highlighting the importance of addressing key bilateral issues. The trade conflict between the United States and China has been a significant source of tension for several months. However, Trump declared that the dispute had been "settled" after reaching a basic consensus on a trade deal with Xi Jinping.

Earlier in October, tensions escalated when Trump imposed additional 100% levies on Chinese exports to the U.S. He also introduced new export controls on critical software by November 1 as retaliation against China's restrictions on rare earth exports. These measures increased the urgency for dialogue between the two countries.

Xi Jinping assured Trump that China's development aligns with Trump's vision of "Making America Great Again." Xi expressed confidence in maintaining a "fantastic relationship" with the United States for an extended period. He emphasised that while differences exist, both countries should strive to be "partners and friends."

The meeting lasted approximately an hour and 40 minutes, according to Chinese state broadcaster CCTV. Following the discussions, President Trump departed South Korea aboard Air Force One. The meeting was seen as an opportunity to stabilise relations after months of turmoil over trade issues.

The announcement of tariff reductions led to positive reactions in global markets, which saw gains ranging from 2% to 3.8%. The temporary lowering of tariffs by both countries provided relief amid a tense global trade environment. This high-level engagement between the U.S. and China marks a pivotal moment in addressing trade disputes and fostering cooperation between two major global economies.

Amid these developments, U.S. officials initiated an investigation into China's compliance with a 2020 trade agreement described by Trump as "an incredible breakthrough." The inquiry aims to assess whether China fulfilled its commitments under the pact. This move could potentially lead to new sanctions if non-compliance is found.

Investigating Trade Compliance

Taiwan's Foreign Minister Lin Chia-lung expressed confidence in U.S.-Taiwan relations ahead of the Trump-Xi meeting. Concerns arose in Taipei about potential compromises involving Taiwan's interests during discussions between Trump and Xi at APEC.

The meeting underscored mutual recognition that neither side wants to risk destabilising the world economy further. In recent days, U.S. officials indicated that Trump might not impose an additional 100% import tax on Chinese goods as previously threatened.

As part of efforts to ease tensions, China signalled willingness to relax export controls on rare earths and purchase American soybeans. On his way to South Korea aboard Air Force One, Trump mentioned potential tariff reductions related to China's role in fentanyl production.