Name: Trump-Xi Talks: What to Expect From High-Stakes Meeting
Uploaded: 2025-10-29T04:20:00Z
Duration: 3 min 51 s
Description: As President Trump and Chinese leader Xi Jinping prepare to meet in South Korea, the two powers are at odds over tariffs, technology, and agriculture. WSJ’s Gavin Bade and Jonathan Cheng explain.

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As President Trump and Chinese leader Xi Jinping prepare to meet in South Korea, the two powers are at odds over tariffs, technology, and agriculture. WSJ’s Gavin Bade and Jonathan Cheng explain. Photo: Susan Walsh/Associated Press

https://m.wsj.net/video/20251029/f10db775-5c86-4bed-ab66-c485e7e221ee/3/hls/manifest-hd-wifi.m3u8

As President Trump and Chinese leader Xi Jinping prepare to meet in South Korea, the two powers are at odds over tariffs, technology, and agriculture. WSJ’s Gavin Bade and Jonathan Cheng explain.

Trump-Xi Talks: What to Expect From High-Stakes Meeting

When President Trump and Chinese leader Xi Jinping finally meet, the results could reshape the relationship between the world's two largest economies.

But before we get to any deal, we're gonna need to resolve a bunch of pretty tricky issues, including tariffs, technology, export controls, and agriculture.

Right now, US tariffs on China average about 55 to 57% depending on product. We've gotten to this point through 10 months of undulating tariff battles between Beijing and Washington. This spring, US tariffs on China actually topped out over 145%. After Trump imposed tariffs, Beijing retaliated, he escalated. We got to that very high tariff level. That was a virtual blockade on Chinese goods coming into the US.

China obviously doesn't like the tariffs that President Trump has slapped on its imports. China has spent decades building the world's factory floor. It's a manufacturing superpower, and it relies pretty heavily on exports for its growth. Of course, this is not just something that hurts China, it also hurts America as well to have the tariffs up at that level. And so, you quickly saw them bring those tariff levels down again.

Gavin: And this is going to be a key issue in the trade talks in South Korea this week.

Jonathan: There's a very good chance we come out of this next Trump-Xi meeting with the status quo restored again.

It's tough to say who has more leverage overall, because each country has critical supply chains that they can and will and have weaponized against the other side. So, the US controls a lot of the semiconductor manufacturing technology, design technology. And we have tried to make sure that China cannot catch up with us when it comes to those high tech sectors.

That has certainly set China back. But the US had shown that it was likely to move in this direction dating back to the first Trump administration. So, the difference really here is that China has had time to prepare, and that means that that move from the US has less of a potent punch than the rare earths do.

So, I think the challenge will be, can we get a durable commitment from either or both sides to stop weaponizing supply chains, to put a halt on these export controls so that you can have some more stability in the relationship? The agricultural issue has really reemerged in recent weeks as a big flashpoint in this relationship. So, throughout this trade war this year, when China imposed tariffs on the US in response to the US' tariffs, they also stopped buying US agricultural goods, notably soybeans.

What China has done is it's encouraged production of soybeans in Brazil, and they've also invested heavily in infrastructure to allow those soybeans that are harvested in Brazil to make their way across the South American continent. That can then be shipped to China.

China is a big market globally for soybeans and for soybeans from the US. And you've seen US farmers really be hit by this. I think what you will see in these talks is the Trump administration try to extract some promises that they will buy more agricultural goods from the US.

Ultimately, China's gonna judge success not so much based on what is said in the room when Trump and Xi finally do meet, but more on what strengthens China's position, both at home and abroad. The US meanwhile is gonna be focused on bringing back tangible, deliverable victories for its voters. Something that it can present to the people to say, this is what we've got.

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