Trump, Xi set to hold key talks on easing US-China trade war

US President Donald Trump said on Tuesday he expects to resolve “a lot of problems” with Chinese President Xi Jinping during their upcoming meeting aimed at easing the prolonged trade war between the two economic superpowers.

Speaking to reporters before departing for South Korea, Trump said he anticipates a productive discussion that could lead to the United States reducing tariffs on China, particularly in relation to the production and export of fentanyl.

“I think we're going to have a great meeting with President Xi of China, and a lot of problems are going to be solved,” Trump said aboard Air Force One. He added that he was “not sure” if the sensitive issue of Taiwan would come up in their talks.

The meeting, set to take place Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, marks the first face-to-face encounter between Trump and Xi in six years. Global markets and political analysts are closely watching the outcome, which could determine the future trajectory of US-China trade relations.

Framework deal in place

Officials from both Beijing and Washington have confirmed that negotiators have agreed on a preliminary “framework” deal. The final details are expected to be ironed out when the two leaders meet in South Korea.

William Yang, an analyst with the International Crisis Group, cautioned that expectations might not align perfectly. “The United States is eager to reach any trade deal that Trump could declare as a victory,” Yang said. “China, however, is focused on building mutual trust, managing differences, and stabilizing the trade relationship.”

Regional diplomacy and symbolic gifts

Trump’s visit to South Korea is part of a wider Asia tour that began in Malaysia and Japan. In Japan, newly elected Prime Minister Sanae Takaichi praised Trump, calling the current moment a “golden age” in Japan-US relations. Takaichi even said she would nominate Trump for the Nobel Peace Prize and presented him with a golf club once owned by former premier Shinzo Abe, who was assassinated in 2022 and was known for his close friendship with Trump.

In South Korea, Trump is expected to receive a replica of a golden crown from the ancient Silla dynasty as a diplomatic gift.

North Korea adds tension

Hours before Trump’s arrival, North Korea announced it had successfully test-launched sea-to-surface cruise missiles off its western coast — a move seen as a message to both Washington and Seoul.

Trump has extended an invitation to North Korean leader Kim Jong Un to meet while he is in the region. “At some point, we'll be involved with North Korea. I think they'd like to, and I'd like to,” Trump said, adding that his immediate focus remains on the Xi meeting.

The US president will also hold bilateral talks with South Korean President Lee Jae Myung — their second in-person meeting since August. Trade and investment issues are expected to dominate the agenda.

Trade tensions with South Korea

Earlier this year, Trump announced that Washington had agreed to reduce tariffs on South Korean imports to 15 percent in exchange for a $350 billion investment commitment from Seoul. However, disagreements remain over the structure and timeline of the investment.

US Treasury Secretary Scott Bessent acknowledged that there were still “a lot of details to work out” in what he described as a “complicated” trade arrangement. Despite reports of delays, Trump has dismissed suggestions that talks had hit a snag.

Anti-Trump demonstrations are planned in Gyeongju, where activists are protesting what they call “predatory investment demands” by Washington.

Will Trump meet Kim again?

Trump’s potential meeting with Kim Jong Un has generated speculation. The two last met in 2019 at the Demilitarized Zone (DMZ) between North and South Korea, in a historic yet ultimately inconclusive encounter.

Kim recently said he has “fond memories” of those meetings and hinted at a willingness to engage again — but only if the US eases its demand that Pyongyang fully abandon its nuclear arsenal.

“Trump’s made it clear he wants to meet,” said Chad O’Carroll, founder of NK News. “The ball is in Kim Jong Un’s court.”

Analysts note that North Korea’s position has strengthened since 2019, thanks in part to growing ties with Russia. Thousands of North Korean troops are reportedly fighting alongside Russian forces, giving Kim renewed confidence on the global stage.

“North Korea has time on its side and isn’t as isolated as before,” said Hong Min, a senior analyst at the Korea Institute for National Unification.

As Trump and Xi prepare to meet in Gyeongju, much of the world’s attention will be fixed on whether the two leaders can take a decisive step toward stabilizing the global economy and ending one of the most disruptive trade conflicts of the past decade.