Seoul: The Trump Xi meeting in South Korea is still expected to take place in late October, US Treasury Secretary Scott Bessent has confirmed, as both governments work to reduce tensions after fresh tariff threats and new export restrictions. The meeting is set to coincide with the Asia-Pacific Economic Cooperation summit hosted by South Korea.
Fears of a renewed trade war between the world’s two largest economies had escalated last week after China expanded its export controls on rare earths. In response, Trump threatened to impose triple-digit tariffs on Chinese goods, triggering market volatility and heightening diplomatic strain.
China’s Commerce Ministry confirmed that working-level meetings had taken place on October 13, noting that both parties had previously held negotiations in London, Stockholm, and Madrid. These engagements led to a 90-day extension of the existing tariff truce. However, the ministry warned that ‘the US cannot ask for talks while simultaneously threatening new restrictive measures.’
Over the weekend, both sides sought to deflect blame for the renewed tensions. US Trade Representative Jamieson Greer said that China had postponed Washington’s request for a call following the rare earths decision, describing it as a ‘power grab.’ In turn, China’s Commerce Ministry criticised the United States for adding Chinese firms to a trade blacklist and for imposing new port fees on China-linked vessels.
Global markets responded positively to Bessent’s assurances. On October 13, Wall Street’s main indexes rose by as much as 2.2 percent, supported by optimism that the Trump Xi meeting in South Korea could ease trade risks.
However, that optimism faded after Beijing announced sanctions on five US-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, causing Asian stocks to fall amid concerns the dispute could widen further.
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