US President Donald Trump will meet Xi Jinping on Thursday amid growing optimism about a trade deal. The interaction comes days after top leaders from both countries met on the sidelines of the ASEAN Summit — ironing out the framework for a trade agreement. Trump had also insisted that he is confident about hashing out a deal with the Chinese President during their meeting. Their interaction is also likely to focus on the trade of rare earth elements, ongoing fentanyl crisis, the TikTok deal and broader geopolitical concerns.
“Bringing back Trillions of Dollars to USA! A great trip. Dealing with very smart, talented, and wonderful Leaders. Tomorrow, President Xi of China. It will be a great meeting for both!!!” Trump wrote on Truth Social.
Ties between the two countries have been rather turbulent in recent months — with both imposing a series of tit-for-tat tariffs and other restrictions since April. Trump had also threatened to impose an additional 100% tariff (starting November 1) on Chinese goods last week after Beijing tightened export controls for rare earth minerals.
November 10 deadline
US President Donald Trump had sparked chaos in April after announcing sweeping reciprocal tariffs against most imports from more than 180 nations. The announcement soon triggered a tit-for-tat trade war that saw US tariffs on Chinese goods reach up to 145% while Beijing imposed retaliatory tariffs up to 125%. High-stakes negotiations in May had led to a temporary truce — with the US lowering tariffs to 10% for an initial 90-day period while maintaining a base 20% fentanyl-related levy. This pause was later extended to November 10 while the trade war deviated into fresh directions.
China has increased tariffs to about 15% on key US agricultural exports over the past year — including chicken, cotton, corn, wheat, beef, dairy, natural gas, coal, and crude oil. These measures have led to a sharp decline in US agricultural exports to the other country. The US, for its part, has also restricted the export of high-tech products and software to China alongside a bevvy of tariffs. Both sides also escalated port fees for vessels from the other country earlier this month.
Tariff cuts for fentanyl crackdown
According to a report by the Wall Street Journal, Trump and Xi will discuss US tariff reductions in exchange for a commitment to curb exports of fentanyl precursor chemicals. Details of the agreement are likely to be hammered out in subsequent negotiations, and the expected deals could change depending on the meeting between Trump and Xi. Sources told the publication that the US could halve the 20% levies on Chinese goods imposed in retaliation for the export of such chemicals used to make the deadly drug.
Unlocking rare earth elements
China has imposed export controls on rare earth elements and critical minerals essential for technology manufacturing over the past few months — including stringent curbs that went into effect from October 10. The Asian country dominates global rare earth production, and the move has drawn sharp criticism from the United States. Trump is aiming to negotiate lifting these curbs to secure materials vital for industries including defense, electronics, and automotive.
‘Consummation’ of TikTok Deal
The upcoming meeting might also put an end to months of speculation and high-stakes negotiations to finalise the TikTok deal. President Trump had announced the framework deal in mid-September but doubt remained whether it would secure approval from the Chinese government. US Treasury Secretary Scott Bessent however told CBS on Sunday that the two leaders will “consummate that transaction on Thursday in Korea”.
The President had passed a series of murky executive orders over the past ten months to keep the Chinese-owned platform functional in America. The tentatively agreed-upon deal allows an American-led group of investors to buy the US arm of TikTok from ByteDance and circumvents security concerns. American officials have warned the TikTok algorithm is vulnerable to manipulation by Chinese authorities — without any clear evidence proving China has made such attempts.
