A Thaw in Tensions? Trump and Xi Seek Common Ground on Trade, Fentanyl, and TikTok

U.S. President Donald Trump met with Chinese President Xi Jinping in South Korea in what is being seen as a breakthrough after months of escalating trade tensions and tariff increases between the world’s two largest economies.

During the talks, both sides agreed in principle to ease some of the tariffs that have strained global supply chains. China announced it would suspend certain export control measures for a year, while Trump confirmed the U.S. would halve tariffs on Chinese goods related to fentanyl production — lowering them from 20% to 10%. In return, Beijing pledged to resume purchases of U.S. soybeans, which had been halted earlier this year.

No formal agreement was signed, though both leaders signaled optimism about a comprehensive trade deal “coming soon.” Chinese state media said the two nations reached a “consensus to resolve major trade issues,” though specific terms remain undisclosed.

Notably, no progress was reported on the future of TikTok’s U.S. operations, a lingering point of contention.

The meeting marks Trump’s first face-to-face with Xi since returning to the White House and could mark a turning point in U.S.–China relations. Analysts say the tariff reduction offers relief to manufacturers and consumers, but warn that Washington risks alienating key allies like Canada and Mexico, who continue to face higher tariffs.

While both sides have expressed renewed cooperation, the path toward a lasting trade deal remains uncertain.