Trump and Xi to Discuss Trade Amid Escalating Tensions Over Rare Earths

President Donald Trump and Chinese President Xi Jinping are scheduled to meet in South Korea on Thursday to discuss trade relations between the two nations. This meeting comes amid heightened tensions following China's recent expansion of export controls on rare earth elements, which are critical for various technologies, including smartphones and military equipment. In response, President Trump has threatened to impose a 100% tariff on Chinese imports starting November 1 unless an agreement is reached.

During a speech at the Asia Pacific Economic Cooperation summit in Gyeongju, South Korea, President Trump expressed optimism about the upcoming discussions. He stated, "I think we're going to end up having a fantastic deal with China. It's going to be a great trade deal. It's going to be fantastic for both countries, and it's going to be fantastic for the entire world."

Treasury Secretary Scott Bessent indicated that the additional tariffs are "effectively off the table" following recent negotiations with Chinese officials. He also mentioned expectations that China will resume purchases of U.S. soybeans, which had been halted during the trade dispute.

The meeting between the two leaders is highly anticipated, as it could lead to significant developments in the ongoing trade war that has affected global markets and industries reliant on rare earth materials.