Stories
Trump and Xi Meet Amidst Fragile Trade Truce
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CNBC TV18•21-09-2026, 11:05
Trump and Xi Meet Amidst Fragile Trade Truce
- •US President Donald Trump and Chinese leader Xi Jinping are set to meet at the White House to discuss the ongoing trade truce.
- •The trade relationship saw a tariff war escalate significantly in 2025, with both nations imposing increasing duties on goods.
- •A 90-day pause in May 2025 reduced tariffs, which was later extended, leading to a trade truce in October 2025.
- •The truce involved the US trimming tariffs in exchange for China cracking down on fentanyl precursors, resuming soybean purchases, and pausing rare-earth export controls.
- •Despite a US Supreme Court ruling against emergency tariffs in February 2026, new tariffs were imposed in July 2026 over forced labor allegations, leading to the current meeting.
Key Questions Answered
In February 2025, Donald Trump imposed a 10% duty on Chinese goods citing fentanyl and immigration concerns, which led China to respond with retaliatory levies on US coal, LNG, crude oil, and autos, alongside export curbs on five critical defense and clean energy metals.
The US Supreme Court ruled against Trump's emergency tariffs in February 2026, striking down both the China fentanyl tariffs and the reciprocal tariff regime under that specific statute.
The US-China trade truce reached last year is scheduled to expire on November 10, 2026, with leaders meeting in September to discuss a potential extension.
