Trump, Xi Fail To Reach Major Deal As Tariff, Rare Earth Tensions Continue

A high-stakes summit between United States President Donald Trump and Chinese President Xi Jinping ended without major breakthroughs on tariffs and rare earth exports, leaving key disputes between the world’s two largest economies unresolved despite renewed diplomatic engagement.

The meeting, held in Beijing, came amid ongoing tensions over trade, technology, and supply chains that have strained relations between Washington and Beijing for years.

Although both leaders projected optimism and pledged to maintain dialogue, the summit produced few concrete commitments, disappointing many investors and global business leaders who had hoped for a broader easing of trade restrictions.

Trump’s trade policies toward China remain one of the central sticking points in the relationship. During his first term, the US president imposed sweeping tariffs on Chinese imports and encouraged American companies to relocate manufacturing operations away from China.

While tariff levels have fallen from the triple-digit figures briefly reached last year, duties on Chinese goods entering the United States still stand at nearly 48 per cent, according to Chad Bown of the Peterson Institute for International Economics.

Both countries had reached a temporary truce in October last year under which Washington agreed to reduce some tariffs while Beijing maintained exports of critical rare earth materials to the United States. However, that agreement is due to expire in November.

Speaking after the summit, Trump revealed that tariff issues were not directly discussed during his conversations with Xi, raising uncertainty over whether the current arrangement would be extended.

“We did not discuss tariffs,” Trump told reporters.

Foreign policy analysts say extending the truce would have been the minimum achievement expected from the summit.

Patricia Kim, a foreign policy fellow at the Brookings Institution, described any extension of the agreement as “the most basic benchmark” for measuring the success of the meeting.

One of the most contentious unresolved issues remains China’s restrictions on rare earth exports.

Beijing imposed export controls on rare earth materials in response to Trump’s aggressive tariff measures introduced in April 2025. The restrictions have since disrupted supply chains for major American industries, including semiconductor manufacturers and aerospace companies.

United States President Donald Trump and Chinese President Xi Jinping

Rare earth elements are essential for the production of advanced technologies such as electric vehicles, semiconductors, radar systems, submarines, Tomahawk missiles, and F-35 fighter jets.

China currently dominates the global market, accounting for approximately 90 per cent of the world’s processed rare earths and magnets.

Analysts say Beijing’s ability to control supplies has become a major strategic advantage in its rivalry with Washington.

While the United States has accelerated efforts to build domestic rare earth supply chains, industry experts note that the country still lacks sufficient capacity to process and separate heavy rare earth materials independently.

The summit also failed to deliver major gains for leading American corporations that accompanied Trump to Beijing.

The US president arrived with a powerful delegation of business executives, including Tim Cook of Apple, Jensen Huang of Nvidia, Kelly Ortberg of Boeing and Elon Musk of Tesla.

However, expected business deals either failed to materialise or fell short of expectations.

Boeing shares dropped sharply after Trump announced that China would purchase 200 Boeing aircraft — significantly below earlier expectations of about 500 planes. Trump later stated that China could potentially buy as many as 750 aircraft in the future, but no binding agreement was announced.

The lack of clarity unsettled investors, with Boeing stock falling further in pre-market trading on Friday.

There was also no breakthrough regarding the sale of Nvidia’s advanced H200 artificial intelligence chips to China, despite Huang’s participation in the summit discussions.

US officials disclosed that both countries agreed on deals involving American agricultural exports and made progress on mechanisms aimed at managing future trade relations. According to officials, both sides are expected to identify up to $30 billion worth of non-sensitive goods for trade cooperation.

Trump also suggested that China could increase purchases of American oil. US Energy Secretary officials claimed Beijing had expressed interest in buying more US crude oil, although Chinese authorities did not publicly confirm any agreement or provide figures.

Business leaders remain cautious despite the renewed diplomatic engagement.

A senior American executive based in China told the Financial Times that while broader trade cooperation would be welcomed, companies still require “clarity” on timelines, tariffs, and the unresolved rare earth dispute.

Xi, meanwhile, sought to reassure foreign investors by declaring that China’s market would continue opening to international businesses.

“China’s door to business will only open wider and wider,” the Chinese president said during meetings with American executives.

Despite the optimistic rhetoric, the summit ended with few tangible outcomes, underscoring the deep economic and strategic divisions that continue to define US-China relations.

Trump, Xi Fail To Reach Major Deal As Tariff, Rare Earth Tensions Continue