Three things you need to know about the Trump-Xi meeting:

A High-Stakes Trade Negotiation Amid Tariff Tensions
The meeting between U.S. President Donald Trump and Chinese President Xi Jinping on October 30, 2025, in Busan, South Korea, occurs against a backdrop of tit-for-tat tariffs exceeding 100% on numerous goods. Since Trump’s “Liberation Day” tariffs imposed in April, both countries engaged in a month-long tariff battle, disrupting global supply chains and sparking economic uncertainty. U.S. export restrictions on advanced semiconductors and China’s clampdown on rare earth metal exports — critical for defense and technology — are central issues. Officials hope to finalize a trade truce or deal to reduce tariffs and ease tensions, which would stabilize global markets and benefit economic recovery.​

Broad and Complex Agenda Beyond Trade
Though tariffs dominate, the agenda is multifaceted. Talks include the fate of TikTok’s U.S. operations, Chinese purchases of U.S. soybeans impacted during trade disputes, fentanyl trafficking-related cooperation, and geopolitical tensions such as Taiwan’s status and security concerns linked to conflicts like Ukraine’s war. Port fees on Chinese vessels arriving in the U.S. and semiconductor supply chain security also feature prominently. The leaders aim to manage competing interests while pursuing a reset in relations, with Trump expressing optimism about a “productive meeting”.​

Global Implications and Strategic Significance
Experts highlight that this meeting symbolizes more than trade — it’s about shaping globalization in a post-COVID world amid rising U.S.-China strategic rivalry. Alejandro Reyes of the University of Hong Kong emphasizes that the U.S. seeks to consolidate “economic security” by aligning allies with export controls and supply chain standards, while China uses its rare earth dominance as leverage. The outcome will impact global supply chains, technological leadership, and geopolitical power balances. Economists describe the meeting as a potential turning point, but caution remains due to longstanding mistrust and complex issues.​

Background and Context
The Trump-Xi relationship has been marked by alternations between confrontation and dialogue since Trump’s first term. Their last face-to-face meeting was in 2019 at the G20 summit in Japan. The 2025 encounter, held on the sidelines of the Asia-Pacific Economic Cooperation Summit, reflects ongoing efforts to manage an economic rivalry intensified by tariffs, export controls, and security disputes.​

Real-Life Impact
American farmers lost markets when China halted soybean imports; supply chains faced disruption from semiconductor restrictions; and companies await clarity on TikTok’s U.S. future. Consumers risk higher prices if tariffs persist, while the tech race and national security concerns hinge on export policies discussed in these talks.​

What’s Next?
Following the meeting, stakeholders worldwide will scrutinize announced agreements or concessions. While tariff rollbacks and cooperation on fentanyl or rare earth exports could emerge, the strategic rivalry and mutual suspicion suggest ongoing challenges. Analysts advise watching for follow-up negotiations and global market reactions as indicators of the meeting’s success or limitations.

This carefully watched summit may set the tone for U.S.-China relations in coming years, with profound economic and geopolitical ramifications.