The economic tensions between the United States and China have reached a critical juncture, marked by mutual escalations in trade controls and tariff threats. Amidst this rising hostility, U.S. President Donald Trump confirmed on October 18 that he is scheduled to meet with Chinese President Xi Jinping in South Korea within the coming weeks. The high-stakes meeting will take place on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, with the outcome potentially determining the immediate trajectory of the protracted trade war.
The confirmed meeting follows a period of heightened friction ignited by China’s decision to tighten export controls on rare earth metals. These materials are crucial components for a wide array of high-tech and defense products, making China’s dominance in their supply a significant geopolitical and commercial leverage point. Washington viewed the move as an aggressive escalation, prompting a sharp and immediate response from the Trump administration.
America’s Strong Stance and the Tariff Threat
President Trump’s confirmation of the meeting came during a discussion with Ukrainian President Volodymyr Zelensky at the White House. He indicated that while the two nations have “very good” relations and China “wants to talk,” the United States enters the negotiations from a position of strength.
The assertion of strength is tied directly to the administration’s tariff policy. Just prior to confirming the meeting, Trump had condemned China’s rare earth metals decision and threatened to cancel the proposed meeting with Xi. More concretely, he announced a plan to impose an additional 100 percent tariff on Chinese goods starting November 1, an increase that would be “over and above any Tariff that they are currently paying.” Simultaneously, the U.S. planned to implement export controls on all “critical software” on the same date.
Trump stressed that the tariffs are vital for national security and ensure fair treatment for the U.S. in international trade. He argued that “hundreds of billions and even trillions of dollars are coming into the U.S.” because of the tariffs. While the President’s stance was aggressive, he also suggested a willingness to negotiate, saying, “I think we’ll make a deal that will be good for both of them. I think we will do something.” When asked about the possibility of a trade deal emerging from the South Korea meeting, he simply responded, “Maybe.”
China’s Leverage and Diplomatic Overtures
The core of the recent trade escalation centers on rare earth elements. These 17 elements are indispensable in the production of magnets for electric vehicle motors, wind turbines, precision-guided munitions, smartphones, and sophisticated defense technologies. China controls a vast majority of the world’s mining and processing of these critical materials, giving it significant global leverage. The new export controls are seen by Washington as a weaponization of this dominance to gain concessions in the trade talks.
Despite the U.S. threats, Trump also adopted a more conciliatory tone, describing Xi Jinping as a “very strong leader and wonderful person.” He reiterated the necessity for a “fair deal” but stood by his accusation that China had “cheated” the U.S. in the past. The President briefly softened his rhetoric regarding the tariff plan, acknowledging its unsustainability but simultaneously saying it “could stick,” implying that China’s aggressive trade actions “forced” the U.S. hand.
The Chinese side, despite the aggressive U.S. posturing, has also signaled a desire to negotiate, as confirmed by Trump’s remarks that China “wants to talk.” This mutual willingness to engage, despite the high-stakes brinkmanship, suggests that both world leaders see the upcoming bilateral meeting at the APEC summit as a crucial opportunity to de-escalate the conflict and prevent the most severe tariff and control measures from taking effect. The meeting will involve not only Presidents Trump and Xi but also other relevant officials in a “separate meeting” scheduled during the APEC gathering. The global economy now watches the Korean peninsula, where the leaders of the world’s two largest economies will attempt to navigate the most severe trade dispute in decades.
Frequently Asked Questions (FAQs)
Q1: What specifically caused the recent escalation in the US-China trade war?
A1: The immediate cause for the escalation was China’s decision to tighten export controls on rare earth metals. These metals are critical components for various military and commercial high-tech products, and China’s near-monopoly on their supply gives it significant trade leverage. The move prompted a swift and aggressive response from the U.S., including President Trump’s threat of an additional 100 percent tariff on Chinese goods.
Q2: Where and when is the planned meeting between President Trump and President Xi Jinping taking place?
A2: The meeting is scheduled to take place in South Korea within the next few weeks, on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. President Trump confirmed the meeting on October 18, 2025.
Q3: What are the key threats the US has put on the table ahead of the meeting?
A3: The primary threat from the U.S. is the imposition of an additional 100 percent tariff on all Chinese goods, set to take effect on November 1, over and above existing tariffs. This measure is coupled with a threat to implement export controls on “any and all critical software” on the same date. President Trump views these measures as necessary to secure national interests and ensure a “fair” trade relationship.