Trump And Xi Agree On Cold Truce: US-China Face-Off Takes A Break

Trump and Xi's Talk

Diplomatic Context

Donald Trump initiated his trade confrontation with China earlier in 2025, and Xi Jinping resisted by vowing never to yield to external pressure. Both leaders met for two hours in Busan, and the encounter produced a limited consensus that points more toward a temporary truce than a lasting peace.

Trade Developments

China deferred new export restrictions on rare-earth materials, and Beijing agreed to resume American soybean purchases. Trump cut the tariff rate on fentanyl-related imports from 20% to 10%, and Washington suspended further export controls. The resulting framework lowered average U.S. tariffs to about 45%, but analysts noted that the agreement lacked enforceable detail.

Economic and Strategic Implications

The deal restored some trade normalcy, and the arrangement mirrors the pre-war status quo. Trump excluded Nvidia’s Blackwell AI chip exports from the discussions, and national security officials in Washington will continue close oversight. ByteDance’s forced divestment of TikTok America remains under negotiation, and Taiwan was notably omitted from talks.

Mutual Learning and Diplomatic Outlook

Both governments recognized the other’s leverage, and the meeting exposed vulnerabilities in global supply chains. The United States discovered that China could redirect exports toward Asian markets, and China learned how Washington’s tariff policies test domestic resilience. The leaders agreed to reciprocal visits within a year, and that gesture suggests cautious re-engagement rather than reconciliation.

📰 News On Trump & Xi's Truce

+ https://www.theguardian.com/us-news/2025/oct/30/trump-xi-jinping-meeting-us-china-price-confrontation

+ https://www.theguardian.com/us-news/2025/oct/30/five-key-takeaways-donald-trumps-meeting-with-xi-jinping

+ https://www.apnews.com/article/4c19a752c97828246c08f60f0dc54c79