Ahead of Meeting Xi, Trump Expresses Wish to Extend Tariff Pause on Chinese Goods, Ease Rare Earth Exports

US President Donald Trump is looking forward to wins at the crucial meeting with Chinese counterpart Xi Jinping on Thursday, amid the times of a trade rivalry between the world’s largest two largest economies.

 Ahead of the meeting, the US president said he wants to extend a pause on higher tariffs on Chinese goods in exchange for Xi resuming American soybean purchases as well as cracking down on fentanyl and backing off restrictions on rare-earth exports, while keeping in mind some essential trade barriers.

According to a Bloomberg report, Trump said this week, “We’ll make a deal on, I think, everything.”

Additionally, the US President has floated an elusive agreement on nuclear weapons and said that he wants to convince Xi to pressure Russian President Vladimir Putin to end his invasion of Ukraine.

Analysts expect that any agreement reached at the South Korea summit would reduce tensions following weeks of escalating threats and trade retaliation. On Friday, Trump will be heading for a three-nation tour of Asia.

“Both sides are clearly seeking stability in the relationship,” said Henrietta Levin, a former White House China adviser. In a conversation with Bloomberg, she further pointed out, “But stability on whose terms is an open question, and one where I think unfortunately Beijing is holding the cards.”

In addition to that, Trump has insisted China must back down from severe export curbs that highlight Beijing’s strength as the world’s dominant supplier and processor of rare-earth materials used in mobile phones, semiconductors and other technology. 

However, Xi sees its rare-earth dominance as a critical strategic advantage, raising questions on if he would back down without major compromises from the US.

Though the focus of Trump’s trip has remained centered around his China meeting, other trade negotiations with South Korea, India and Brazil remain hanging. It remains unclear whether Trump and South Korea’s Lee will finalize a broad trade framework, which included a pledge to invest $350 billion in the US. On the other hand, no trade agreements are expected to be signed with Vietnam, Indonesia and the Philippines, as per people familiar with the matter, who spoke on the condition of anonymity.