Breaking: Trump and Xi Close to Ending Years-Long Tariff War — Rare Earths on the Table

 

Trump and Xi Near Trade Truce: Tariffs, Rare Earth Deals, and Nvidia Boost Drive Hope Before APEC Summit

In a major geopolitical development, U.S. President Donald Trump and Chinese President Xi Jinping appear to be inching closer to a temporary trade truce ahead of their upcoming meeting at the APEC Summit in Gyeongju, South Korea. The talks, which come amid rising economic uncertainty and global supply chain tensions, could mark a significant pause in one of the world’s most influential trade rivalries.

U.S.-China Trade Talks Gain Momentum

According to senior administration officials, the White House is preparing a framework that would temporarily ease tariffs on Chinese goods while introducing new measures to reduce port fees and shipping costs between the two nations. This initiative signals a strategic effort to stabilize markets and improve diplomatic relations before the high-profile Trump–Xi meeting.

Source: The Kobeiisi Letter X

President Trump told reporters at the White House that he is “working something out” with President Xi regarding tariffs and the export of rare earth minerals — materials crucial to global technology and defense industries. “We’re looking at solutions that benefit both countries. China’s an important partner, and we’re exploring ways to make trade fair again,” Trump said.

The U.S. leader also hinted at a surprising tech-related development: Nvidia CEO Jensen Huang recently presented him with the company’s advanced Blackwell chip at the Oval Office. Trump stated he plans to discuss the technology with Xi, fueling speculation about potential U.S.–China collaboration in the semiconductor sector.

Following Trump’s comments, Nvidia’s stock surged in after-hours trading, as investors interpreted the news as a sign of potential relaxation in U.S. restrictions on high-end chip exports to China.

Trade Hopes Lifted by Port Fee Reduction Plans

Adding to the optimism, The Wall Street Journal reported that both nations are preparing to lower port fees on goods traded across the Pacific. The move is expected to reduce shipping expenses and simplify logistics — a much-needed boost for exporters on both sides struggling with inflation and high freight costs.

Source: X

According to trade officials, the port fee reductions would apply primarily to essential goods such as agricultural exports, industrial machinery, and technology components. Analysts say that this step could increase trade volume between the U.S. and China by up to 8% within six months, assuming no new sanctions are imposed.

A Critical Meeting Ahead of APEC

The upcoming meeting between Trump and Xi — their first face-to-face engagement since 2019 — is expected to be one of the most closely watched events of the APEC Summit. Scheduled for later this week in Gyeongju, the session aims to “lower the temperature” in the ongoing rivalry between the two economic superpowers.

However, expectations remain cautious. Experts believe that while the talks might lead to temporary relief, a full resolution of trade disputes remains unlikely. “We’re likely to see a diplomatic cooling, not a complete thaw,” said Dr. Robert Chang, an international trade expert at the Brookings Institution. “Both leaders need a political win, but neither is ready to compromise fully.”

Key Discussion Points on the Table

According to multiple diplomatic sources, the Trump–Xi discussions will center around four major topics:

Source: X

1. Rare Earth Minerals: China is expected to delay its planned export restrictions on rare earth minerals, initially scheduled to take effect on December 1. This would ease pressure on the U.S. technology and defense industries that rely heavily on these materials.

2. Agricultural Purchases: Beijing is reportedly considering increasing imports of U.S. soybeans, a move aimed at balancing trade deficits and appeasing American farmers — a key voting bloc for Trump.

3. Fentanyl Cooperation: Both nations are expected to strengthen their collaboration to curb the illegal export of fentanyl and its precursor chemicals, addressing one of the most politically sensitive issues in U.S. domestic policy.

4. TikTok and Digital Regulation: Discussions may also include finalizing an agreement to make TikTok compliant with U.S. data laws, potentially ending months of uncertainty over the popular app’s operations in America.

If successful, these negotiations could temporarily pause the escalating trade war that has seen tariffs soar to historic levels. Currently, the average U.S. tariff on Chinese goods stands at around 55%, while China’s average tariff on American imports remains near 32%.

Persistent Frictions Despite Progress

Despite signs of progress, tensions between Washington and Beijing remain deep-rooted. The U.S. continues to blacklist several Chinese technology companies over national security concerns, while Beijing has launched investigations into American tech giants like Nvidia and Qualcomm.

The trade imbalance remains a major issue as well. Chinese exports to the U.S. fell by 27% in September — the sixth consecutive monthly decline — while U.S. exports to China dropped by 16%. These figures underscore the fragility of trade relations even as both sides push for dialogue.

“Both sides are bleeding economically,” said Dr. Ellen Price, a global economics professor at Georgetown University. “But neither wants to appear weak. This truce is about optics as much as it is about policy.”

The Role of Rare Earths in the Global Power Game

Rare earth minerals — crucial for producing smartphones, EV batteries, and advanced military equipment — have become a central bargaining chip in the U.S.–China rivalry. China controls nearly 70% of the global supply, giving it significant leverage.

If Beijing agrees to extend export allowances, it could provide much-needed stability to global tech supply chains. However, analysts warn that such an agreement may only be temporary. “China’s rare earth policy will always serve national interest first,” said John Michaels, an analyst at GlobalData. “The U.S. will need to develop alternative supply chains in Australia, Canada, and Africa if it wants long-term independence.”

Nvidia and the Symbolism of Semiconductor Diplomacy

Trump’s mention of Nvidia’s Blackwell chip during his statement added a surprising twist to the trade discussion. The chip, seen as the next-generation powerhouse for artificial intelligence systems, represents both innovation and dependence — the very tension at the heart of the U.S.–China tech war.

Sources close to the White House suggest that discussions could involve limited cooperation in AI research and semiconductor trade, provided national security safeguards are in place. While no official deal is expected at APEC, this small step could symbolize a new approach — competitive coexistence rather than outright confrontation.

Expert Outlook: A Ceasefire, Not a Peace Treaty

Most experts agree that while the upcoming Trump–Xi meeting may bring temporary relief to global markets, it will not end the trade war. “This is a tactical pause, not a strategic solution,” said Michael Tan, a policy analyst at the Asia-Pacific Institute. “Both countries are recalibrating their strategies ahead of the 2026 negotiations.”

Analysts expect the trade truce to last for about a year, allowing both sides to focus on domestic economic challenges — including inflation in the U.S. and slowing growth in China.

Conclusion: Fragile Hope in a Fractured Relationship

For now, both Washington and Beijing appear ready to take a step back from escalation. Trump wants to reassure American industries before the next election cycle, while Xi seeks stability amid slowing Chinese exports. The APEC meeting offers both leaders a chance to project control and pragmatism in a world hungry for economic certainty.

Yet beneath the surface, the U.S.–China trade conflict remains unresolved. As one senior diplomat put it, “This isn’t peace — it’s a pause. But even pauses matter in a world this volatile.”

The world will be watching closely as Trump and Xi shake hands in Gyeongju — a gesture that may not end the rivalry but could very well define its next chapter.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.