The Trump–Xi meeting wrapped with tariffs, rare earths, semiconductors, U.S. soybeans, fentanyl, and other flashpoints all on the table. What, concretely, was agreed? Does a U.S.–China truce set the stage for U.S.–Taiwan talks next? If China trims certain tariffs to 47%, could Taiwan face rates closer to 15%—and on which goods?
On Oct. 30, U.S. President Donald Trump met with Chinese President Xi Jinping on the sidelines of the APEC summit in South Korea. It was a chance for the two superpowers to hash out many things: tariffs, rare earth minerals, semiconductors, American soybeans, and fentanyl.
For Taiwan, the key takeaway is that China and the U.S. have reached a temporary ceasefire, so now it’s time for Taiwan and the U.S. to talk.
This was Trump’s first meeting with Xi during his second term. Hsien-Ming Lien (連賢明), President of the Chung-Hua Institution for Economic Research, said the outcome “could have been worse, but there was no de-escalation, meaning that the two sides prefer talking to letting things get worse.”
According to a statement released after the meeting, tariffs on Chinese goods sold to the U.S. will decrease from 57% to 47%, while restrictions on rare earth exports will be lifted for a year. China promised to buy more American soybeans, while the U.S. will lower tariffs on fentanyl and suspend port fees for a year. Despite all this, the U.S. has not lifted restrictions on AI chip exports, and China is continuing its anti-trust investigations into Nvidia. “Their meeting was a brief intermission.” The structural conflict still looms large.
Taiwan-U.S. Tariff Talks Taking Shape
The two leaders did not talk about Taiwan, which was a relief. Amanda Hsiao, a director in Eurasia Group’s China practice, said it’s clear Trump’s staff and U.S. senators drilled it into him “not to mouth off on Taiwan.”
Nonetheless, the temporary truce between China and the U.S. may pave the way for Taiwan and the U.S. to discuss reciprocal tariffs. Lien said Trump is inclined to put Taiwanese matters on hold when things are murky with China. Now that a breakthrough of sorts has occurred, he might be motivated to revisit the issue.
Currently, Chinese tariffs have been dropped to 47%, while Japanese and Korean tariffs have been lowered to 15%. A Taiwanese official familiar with the talks revealed that Taiwan’s 20% tariffs may soon be reduced to 15%, in keeping with its East Asian neighbors.
Section 232 Tariffs on Semiconductors: The Real Sticking Point
Tariffs will only be the opening moves in a powwow between Taiwan and the U.S. Of all Taiwanese exports to the States, 70% are tax-exempt semiconductors and electronic components. Therefore, the crux lies in America’s Section 232 tariffs.
Section 232 of the Trade Expansion Act allows the U.S. government to investigate imports for national security reasons. The U.S. invoked it when it launched an investigation into chip imports in April this year, with results still pending. Lien said, “Trump wants to woo Taiwanese investments in the U.S. while protecting domestic industries. How to use tariffs in a way that’s most beneficial to the U.S. is something they haven’t figured out yet.”
On the eve of Trump’s meeting with Xi, South Korea announced it had reached a tentative agreement in which American tariffs on Korean semiconductors “will not be disadvantageous compared to Taiwan,” although it declined to disclose actual numbers. Analysts think Taiwan may end up with a similar “half-baked” deal—half set in stone but with some wiggle room.
Trade Under Trump 2.0: Stop and Go, Ad Infinitum
In conclusion, although Trump’s meeting with Xi temporarily eased tensions, competition between the superpowers remains fierce. Tariffs were lowered, but chip restrictions remain in place. Lien summarized: “This shows that Trump’s negotiation logic has returned—talk a bit, pause a bit, and then keep talking.”
By Silva Shih
web only
2025-11-03