Key Highlights
- US President Donald Trump met Chinese leader Xi Jinping for discussions on their countries’ trade war.
- Trump expressed confidence in reaching a good deal with China during the meeting at the APEC summit in South Korea.
- The US and South Korea are trying to finalise a trade deal, reducing tariffs from 25% to 15%, but talks have stalled over $350 billion in investment.
- Trump met Indian Prime Minister Narendra Modi, where he expressed interest in meeting North Korean leader Kim Jong Un but could not agree on timing.
APEC Summit and US-China Trade Talks
The Asia Pacific Economic Cooperation (APEC) summit in South Korea saw a significant moment as President Donald Trump of the United States met with Chinese leader Xi Jinping. This meeting, held during the APEC CEO summit, marks an important step towards resolving the ongoing trade war between the two global economic powers.
Trump’s Optimism for US-China Relations
At the summit, President Trump expressed his belief that a deal could be reached with China. “We are going to have a good deal,” he stated during a speech to CEOs. The US President emphasized that this would benefit both nations, reflecting an optimistic outlook despite previous tensions in their trade relationship.
Tariff Reductions and Investment Debates
The meeting between Trump and Xi came against the backdrop of ongoing negotiations over tariffs. In July 2025, the US and South Korea agreed to reduce tariffs from 25% to 15%, with South Korea committing $350 billion in investments into the United States. However, talks have since stalled due to disagreements on the structure of these investments.
President Lee Jae Myung of South Korea has been tasked with delivering a trade deal that will satisfy both sides. His strategy involved praising Trump as a “peacemaker” and suggesting he could help mediate a meeting between Trump and North Korean leader Kim Jong Un, though this proposal did not yield results.
Trade War Dynamics
The US and South Korea’s trade relationship has been strained in recent months. In August 2025, Lee visited the Oval Office to discuss the tariff reduction deal but faced further demands from Washington. The situation reflects broader challenges in international trade relations amid global economic uncertainties.
Domestic Politics and International Pressure
While Trump’s visit to South Korea was marked by a lavish welcome, including the presentation of the Grand Order of Mugunghwa, an honor given for contributions to peace on the Korean Peninsula, it also faced criticism. Anti-Trump protesters gathered outside the venue, highlighting domestic divisions within South Korea over American policies and their impact.
The meeting between Trump and Lee marked a significant event in the region’s political landscape, with implications not only for trade but also for regional stability and security.
Future Implications
As both nations continue to navigate complex trade negotiations, the outcome of these discussions will have far-reaching consequences. The meeting between Trump and Xi at the APEC summit underscores the importance of bilateral relations in shaping global economic policies and international cooperation.
Experts suggest that a successful deal could pave the way for increased collaboration on various fronts, including technology, healthcare, and environmental issues. However, any failure to reach an agreement may exacerbate existing tensions and hinder progress towards a more integrated global economy.
Summary
The APEC summit in South Korea witnessed a pivotal meeting between US President Donald Trump and Chinese leader Xi Jinping. Despite ongoing trade disputes, both leaders expressed hope for mutually beneficial agreements. The situation reflects the complex dynamics of international relations and the critical role of negotiation and diplomacy in resolving global economic challenges.
