In a significant development during the Asia Pacific Economic Forum (APEC) in Gyeongju, South Korea, President Donald Trump expressed his optimism regarding a potential trade agreement with Chinese President Xi Jinping. This meeting comes after a prolonged period of escalating trade tensions between the United States and China, which have raised concerns about the impact on the global economy.
During a lunch meeting with APEC business executives, Trump stated, "I think we're going to have a deal; I think it will be a good deal for both." He emphasized that reaching an agreement is preferable to engaging in ongoing disputes, highlighting the positive outcomes that could arise from constructive dialogue.
President Trump indicated that he might consider reducing tariffs on Chinese goods if Beijing commits to restricting the exports of chemicals used in the production of fentanyl. "I expect to be lowering that because I believe that they're going to help us with the fentanyl situation," he remarked to reporters as he traveled to Gyeongju. Currently, the U.S. imposes a 20% tariff on imports from China, along with additional tariffs, due to concerns that China has not sufficiently limited the export of fentanyl precursors.
In retaliation, China has imposed its own tariffs on U.S. soybeans, escalating the trade conflict. Recent meetings between U.S. and Chinese economic officials in Malaysia aimed to outline a framework for a trade deal that would involve China resuming purchases of U.S. soybeans and delaying the imposition of export restrictions on rare earth materials.
Both nations have exchanged accusations regarding economic coercion, which they claim is destabilizing the global economy. Treasury Secretary Scott Bessent criticized China's rare earth export controls, stating, "They have pointed a bazooka at the supply chains and the industrial base of the entire free world, and we're not going to have it." This highlights the ongoing tensions and the potential for a broader economic fallout if an agreement is not reached.
Experts like Zhu Feng, dean of the School of International Studies at Nanjing University, have expressed concerns that the high tariffs imposed by the U.S. are pushing globalization to the brink of collapse. In addition to tariffs, the U.S. has increased port fees for Chinese-operated ships and suggested controls on software exports to China.
In addition to trade discussions, President Trump expressed his desire to address nuclear arms control with President Xi. He hinted at the possibility of involving China in U.S.-Russia nuclear negotiations. While there was speculation about a revival of negotiations with North Korean leader Kim Jong Un, it appears that focus has shifted away from that agenda during this visit.
Trump reassured South Korean President Lee Jae Myung that his primary goal for the trip was discussions with Xi. He acknowledged the ongoing tensions between North and South Korea, stating that efforts would be made to improve the situation, emphasizing his commitment to diplomatic resolution.
As President Trump engages in discussions during his visit to South Korea, North Korea has announced successful cruise missile tests, further complicating the security landscape in the region.
