Trump and Xi Seek to Extend Fragile Trade Truce Amid Rising Tensions
US President Donald Trump and Chinese leader Xi Jinping are set to meet at the White House on Thursday for talks aimed at extending their fragile trade truce, which is due to expire in November. The two leaders have a history of tensions over tariffs, dating back to 2025 when Trump imposed a 10% duty on Chinese goods over fentanyl and immigration concerns.
China responded with levies on US coal, LNG, crude oil, and autos, as well as curbing exports of five metals key to defense and clean energy. The trade war escalated rapidly in the months that followed, with both sides imposing matching tariffs and Beijing restricting rare-earth exports.
In October 2025, Trump and Xi struck a trade truce after talks in South Korea, with Trump agreeing to trim tariffs in exchange for Beijing cracking down on fentanyl precursors, resuming soybean purchases, and pausing rare-earth export controls. However, the US Supreme Court later ruled against Trump's emergency tariffs, striking down the China fentanyl tariffs and the reciprocal tariff regime.
The two leaders have since made efforts to ease tensions, including a summit in Beijing in May 2026 where they announced plans to create new Boards of Trade and Investment. The trade truce has been extended several times, but it remains fragile, with investors and analysts watching for signs of an extension or breakdown.