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A Fragile Truce: Trump and Xi De-escalate Trade Tensions, but Nuclear Anxieties Loom Large

October 30, 2025
in World
Reading Time: 9 min

The highly anticipated summit between President Trump and China’s Xi Jinping on Thursday had the world on edge, hoping for a much-needed economic detente. And an economic truce is exactly what they got.

However, the relief was short-lived, as the meeting also delivered an unexpected and chilling development: heightened fears that the world might be entering a dangerous new chapter of nuclear weapons proliferation among major global players.

Following a 90-minute closed-door session in South Korea, President Trump revealed that he and Chairman Xi had significantly dialed back their heated trade dispute. They struck a provisional, year-long ceasefire, agreeing to reverse retaliatory actions such as hefty tariffs and China’s controversial restrictions on rare earth metals.

This particular meeting stood out as the most crucial and closely watched event during President Trump’s extensive week-long diplomatic tour across Asia. His itinerary included a series of trade and security negotiations with regional partners, many of which were strategically aimed at counteracting Beijing’s growing influence.

Upon his return to Washington aboard Air Force One, President Trump enthusiastically declared, “I guess on the scale from 0 to 10, with 10 being the best, I would say the meeting was a 12.”

While the trade agreement offered a much-needed boost to the global economy, it was overshadowed by a sudden and concerning escalation of nuclear threats among world powers.

Moments before his arrival in Busan, South Korea, for the pivotal meeting with Chairman Xi, President Trump made a surprising announcement on social media: the United States would immediately resume nuclear weapons testing, ending a moratorium that had lasted over three decades. This declaration followed Russia’s recent announcement of its own tests of a nuclear-capable missile and an advanced sea drone earlier in the week.

He stated on social media, “Because of other countries’ testing programs, I have instructed the Department of War to start testing our Nuclear Weapons on an equal basis,” confirming that these tests would commence without delay.

No additional specifics were provided by Mr. Trump regarding this significant decision. However, his pronouncement appeared to be a deliberate move to intensify pressure just as he prepared to engage with the leader of the world’s second-largest economy and the commander of its third-largest nuclear arsenal.

Following the summit, President Trump offered effusive praise for Mr. Xi, calling him a “great leader of a very powerful, very strong country.” He seemed to temper his earlier, more aggressive stance, hinting that his nuclear testing announcement was directed not at China, but at unnamed other nations.

Trump elaborated, “We have more nuclear weapons than anybody, we don’t do testing. We’ve halted it years — many years ago. But with others doing testing, I think it’s appropriate that we do also.”

This turbulent prelude to the meeting starkly highlighted President Trump’s unpredictable approach to critical international issues and diplomacy. It underscored his tendency to alter policy abruptly, even on matters as grave as America’s nuclear strategy, further showcasing his increasingly volatile foreign policy stance since assuming office again.

The summit also underscored the immense stakes involved in every encounter between the United States and China: the stability of the global economy, worldwide security, and the far-reaching consequences of their negotiations, impacting everything from regional alliances in the Indo-Pacific to the ongoing conflict in Ukraine.

A statement released by China’s official news agency, Xinhua, after the meeting remained vague on specific agreements but subtly referenced China’s recent decision to halt exports of critical minerals.

Chairman Xi reportedly cautioned President Trump that recent “twists and turns” in the U.S.-China relationship should serve as a mutual lesson, urging both sides to avoid a “vicious cycle of mutual retaliation.”

Ultimately, the meeting yielded tangible successes for President Trump’s foreign and domestic policy objectives.

On Air Force One, Trump informed reporters that China had consented to a one-year suspension of its export restrictions on rare earth metals—materials vital for numerous advanced manufacturing sectors. China’s earlier decision to limit these exports had nearly led to the cancellation of this week’s high-profile meeting.

Additionally, Trump announced that Chairman Xi pledged increased efforts to curb the flow of precursor chemicals used in fentanyl production. In reciprocation, the United States would halve its fentanyl-related tariffs on China, from 20 percent to 10 percent—a significant win for Trump, who has prioritized combating fentanyl deaths domestically.

In a subsequent social media post, President Trump declared that Mr. Xi had committed to purchasing “massive amounts of Soybeans” and other agricultural goods, exclaiming, “Our Farmers will be very happy!” He also noted China would “begin the process” of acquiring American energy.

Despite President Trump’s warm reception of Mr. Xi prior to their discussions at a military base in Busan, the atmosphere was notably tenser compared to his earlier meetings with the leaders of Japan and South Korea.

Earlier in his five-day Asian tour, Trump’s focus had largely been on receiving accolades and securing swift trade agreements. However, his encounter with Chairman Xi on Thursday marked a more serious phase of the trip, even as he referred to Xi as “a friend of mine.”

Prior to their discussion, the two leaders exchanged a tense handshake before a backdrop of Chinese and American flags at a Busan air base. President Trump spoke at length, while Mr. Xi remained conspicuously silent.

President Trump affirmed, “President Xi is a great leader of a great country, and I think we’re going to have a fantastic relationship for a long period of time.”

Chairman Xi, on the other hand, approached the meeting with a measured and resolute demeanor. He metaphorically described China-U.S. relations as a “giant ship” requiring stable, collective guidance.

Mr. Xi acknowledged that he and President Trump “do not always see eye to eye” and considered it “normal for the two leading economies of the world to have frictions now and then.”

He subtly hinted that he would not succumb to President Trump’s “America First” agenda, stating, “I always believe that China’s development goes hand in hand with your vision to make America great again.”

Prior to their private discussions, both leaders indicated a focus solely on the extensive trade agenda, signaling an intention to set aside more serious issues. These included the escalating nuclear testing among rival nations and Chairman Xi’s clear ambition to distance America from Taiwan.

When asked about raising the Taiwan issue, Mr. Xi offered no response. Similarly, President Trump conspicuously avoided answering a question regarding his order to resume nuclear weapons testing after a 33-year hiatus. His brief hesitation before declining to answer was uncharacteristic for the usually outspoken leader.

After the meeting, President Trump stated that Taiwan was not discussed. On Wednesday, he had already told reporters on Air Force One that he didn’t anticipate it would be raised, and he refrained from expressing support for the self-governed island’s independence, which China asserts as its territory.

The leaders did, however, address other global conflicts, with President Trump noting extensive discussions with Mr. Xi about the war in Ukraine. He indicated a joint commitment to “work together to see if we can get something done.”

Despite his previous efforts to pressure other nations to cease buying Russian oil—a significant funding source for the invasion of Ukraine—President Trump merely acknowledged China’s long-standing purchases from Russia, stating the topic was not a major point of discussion.

President Trump’s directive to resume nuclear testing followed closely on the heels of Russia’s President Vladimir V. Putin’s declaration of successful tests involving a nuclear-powered, nuclear-capable missile and a nuclear sea drone designed to generate tsunamis. This coincides with Chairman Xi’s aggressive oversight of one of the world’s most rapid nuclear arsenal expansions.

When questioned about whether his directive risked creating a more dangerous nuclear landscape, President Trump dismissed the concern, confidently stating, “I think we have it pretty well locked up.”

He further mentioned that the United States was already engaged in denuclearization discussions with Russia, with plans to include China in these talks.

This nuclear testing announcement also followed earlier significant declarations by President Trump concerning the bolstering of defenses for American allies in the region.

On Tuesday, at a naval base near Tokyo, President Trump revealed that the Japanese government had ordered American-made missiles to equip its fighter jets, a move consistent with his administration’s pressure on Japan to increase its military defense spending.

Beside him, Japanese Prime Minister Sanae Takaichi reaffirmed her commitment “to make the Indo-Pacific free and open,” a clear nod to countering China’s strategic moves and territorial claims in the contentious South China Sea.

In South Korea, Trump commended the nation’s investment in American shipbuilding, later announcing that he had granted the U.S. ally “approval to build a nuclear-powered submarine.”

Upon his arrival in Busan, President Trump appeared confident he had amassed sufficient leverage to secure an agreement with Chairman Xi, and he was eager for further engagement.

Throughout his entire journey, President Trump consistently expressed optimism about forging a deal that could solidify the delicate trade truce established between the U.S. and China just last month, after four intense rounds of talks. As he returned to Washington, he proudly declared victory.

He hailed the meeting as “a great success” and revealed plans for a visit to China in April.

He concluded by emphasizing, “The whole relationship is very, very important.”

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