Trump, Xi seek truce: High-stakes South Korea meeting stretches beyond schedule amid trade war tensions

In a pivotal encounter that could reset global economic dynamics, US President Donald Trump and Chinese President Xi Jinping held marathon talks in Busan, South Korea, on October 30 — their first in-person meeting since Trump’s return to the White House.

The meeting, which ran nearly an hour and 40 minutes longer than planned, took place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit and signaled cautious optimism amid months of escalating trade hostilities.

Trade thaw on the horizon

Trump declared he “could sign a trade deal today,” asserting that the two leaders had “already agreed to a lot of things,” according to Reuters. Chinese state media later confirmed that both sides’ trade teams had reached a “basic consensus” on key issues.

In a rare conciliatory tone, Trump hinted at lowering tariffs linked to China’s role in fentanyl production, saying, “I expect to be lowering that because I believe they’re going to help us with the fentanyl situation.”

Signals of compromise

Ahead of the meeting, US officials suggested that Trump would refrain from imposing the additional 100 percent import tax he had threatened, while Beijing appeared ready to ease its rare earth export curbs and resume soybean purchases. US Treasury Secretary Scott Bessent said a “substantial framework” had been outlined to delay China’s export restrictions for a year and revive agricultural trade between the two nations.

Strategic choreography

Xi, accompanied by senior diplomat Wang Yi, emphasized that the two leaders should “guide the direction of ties” between the world’s largest economies, according to Xinhua. Trump, joined by Secretary of State Marco Rubio and Treasury Secretary Bessent, hailed Xi as a “very tough negotiator” but stressed that mutual understanding was already strong.

Short-term peace, long-term uncertainty

Analysts warned that the apparent breakthroughs might only offer temporary relief. “The proposed deal on the table fits the pattern we’ve seen all year — short-term stabilisation dressed up as strategic progress,” noted Craig Singleton of the Foundation for Defense of Democracies.

The high-profile meeting, dubbed the “G2 summit” by Trump, unfolded inside the Gimhae Air Base near Busan. As the leaders departed — Trump boarding Air Force One and Xi’s motorcade pulling away — global markets watched closely, hoping that Thursday’s dialogue might finally halt the spiraling trade confrontation between Washington and Beijing.