Trump, Xi negotiate trade stalemate

President Donald Trump and Chinese leader Xi Jinping opened talks in Beijing on Thursday with a narrower goal than a reset: keep a trade truce from breaking down while both governments manage disputes that now reach beyond tariffs. The meeting is Trump’s first visit to China since 2017 and comes after a year in which tariff escalation disrupted trade flows, pushed companies to reroute sourcing and left both sides trying to preserve access to key goods. Reuters reported that the leaders were expected to discuss the trade truce, the Iran war and U.S. arms sales to Taiwan. AP reported that the earlier tariff fight sent U.S.-China trade into a “freefall.” ### Why are Trump and Xi talking now instead of earlier in the trade fight? May 14 is the first face-to-face summit in Beijing between the two leaders during this phase of the dispute, after months of tariff escalation and partial pullbacks left both governments with a limited arrangement rather than a broad settlement. Reuters reported that both sides are eager to maintain a truce struck last October, when Trump suspended triple-digit tariffs on Chinese goods and Xi stepped back from choking global supplies of rare earths. (aol.com) The White House said Trump’s delegation includes business executives seeking relief on commercial issues in China, and Reuters reported that Trump has said his first request to Xi would be to “open up” China to U.S. industry. That framing points to market access and supply security rather than a full rewrite of the economic relationship. ### What damage did the tariff war already do to trade? (aol.com) The Associated Press reported on May 13 that Trump’s trade war with Beijing sent U.S.-China trade into a “freefall” and forced companies on both sides of the Pacific to regroup. That regrouping included shifting suppliers, reworking shipping routes and trying to reduce dependence on direct bilateral flows. (aol.com) Triple-digit tariff levels were a central reason the disruption spread so quickly. In the 2025 de-escalation announced after talks in Geneva, U.S. Trade Representative Jamieson Greer said the United States would cut its tariff rate on Chinese goods by 115 percentage points, from 145% to 30%, while China would lower its rate on U.S. goods by the same amount to 10%. Those earlier numbers show how far the two sides had moved before later truces narrowed the immediate pressure. (apnews.com) ### Why is a trade meeting also about rare earths, Taiwan and Iran? Reuters reported that the Beijing agenda goes beyond tariffs because the truce itself is tied to strategic pressure points, especially rare earth exports and U.S. policy toward Taiwan. The October arrangement paired U.S. tariff relief with Chinese restraint on rare earth supply curbs, linking commercial concessions to materials used in products from electric vehicles to weapons. (africanews.com) AP reported that U.S. arms sales to Taiwan are also part of the talks, and Reuters said the Iran war is on the agenda as well. That means the summit is not built around trade in isolation; it is built around a broader set of disputes that both governments are trying to manage at the same time. ### Why are expectations for a breakthrough so low? (aol.com) AP reported on Thursday that the summit was expected to produce few major breakthroughs on the most divisive issues, including trade, technology and Taiwan. The same report said the visit could center more on symbolism and pageantry than on large bilateral deals. The New York Times reported that Trump entered office seeking tougher trade action against China and has since scaled back those ambitions. (apnews.com) Reuters, citing Ali Wyne of the International Crisis Group, said the balance of leverage has shifted since Trump’s last Beijing visit in 2017, when China was buying billions of dollars in U.S. goods and courting him more aggressively. (apnews.com) ### What should readers watch for after the opening session? Thursday’s schedule in Beijing included formal talks at the Great Hall of the People, with Reuters reporting that Trump and Xi were also set to tour the Temple of Heaven and attend a state banquet. Friday’s program includes more leader-level time, including tea and lunch together, according to Reuters. (nytimes.com) The most concrete test will be whether the two sides extend or reinforce the existing trade truce, especially on tariffs and rare earths. Any public statement from Beijing or Washington after Friday’s meetings should show whether the summit produced a new timetable, a narrower commercial commitment or only an agreement to keep talking. (aol.com)