How Trump and Xi went from tariff war to trade truce

• The trade war escalated dramatically in April 2025 with 'Liberation Day' tariffs reaching 125% on both sides, accompanied by Chinese rare-earth export curbs and travel warnings for citizens visiting the US
• A turning point came in May 2025 with Geneva talks producing a 90-day pause that cut US tariffs to 30% and Chinese tariffs to 10%, extended again in August 2025
• Recent developments include a US Supreme Court ruling in February 2026 striking down Trump's emergency tariffs, and new 12.5% US tariffs imposed in July 2026 on 60 trading partners including China over forced labor allegations

Summary: US-China Trade War Timeline and Upcoming White House Summit

Chinese President Xi Jinping is scheduled to meet President Trump at the White House on September 24, 2026, as both nations seek to extend a fragile trade truce set to expire in November.

Key Timeline of Escalation and De-escalation:

The trade conflict reignited in February 2025 when Trump imposed 10% tariffs on Chinese goods over fentanyl and immigration concerns. China retaliated with levies on US coal, LNG, crude oil, and autos, plus export curbs on five critical metals.

Tensions escalated dramatically through April 2025 with Trump's "Liberation Day" tariffs of 34% on China. Both sides rapidly escalated tariffs to 125% each. China restricted rare-earth exports and warned citizens against US travel, while Chinese agricultural tariffs hit $21 billion in US exports.

A breakthrough came in May 2025 with Geneva talks producing a 90-day pause, reducing US tariffs from 145% to 30% and Chinese tariffs from 125% to 10%. This pause was extended another 90 days in August 2025.

Further progress occurred in October 2025 when Trump and Xi reached a truce in South Korea, with Trump trimming tariffs in exchange for China addressing fentanyl precursors, resuming soybean purchases, and pausing rare-earth controls.

Recent Developments:

In February 2026, the US Supreme Court struck down Trump's emergency China tariffs, prompting a temporary 10% global duty. Trump's May 2026 Beijing visit yielded agreements on new Boards of Trade and Investment, plus Chinese purchases of Boeing aircraft and US agricultural products.

Most recently, July 2026 saw 12.5% tariffs imposed on 60 trading partners, including China, over forced labor allegations.

Expectations for major breakthroughs at the upcoming summit remain tempered, though markets are watching for truce extension signals.