Xi and Trump meet with Taiwan, tariffs, and Iran on the agenda

U.S.-China relations have been strained for several years over trade imbalances, technology competition, and competing claims regarding Taiwan. The Biden administration maintained restrictions on semiconductor exports to China and continued arms sales to Taiwan under the Taiwan Relations Act - policies the Trump administration has largely inherited and in some areas extended. The two governments reached a temporary tariff reduction agreement in May 2025, pausing some of the steepest duties imposed during an escalating trade conflict, but a durable framework has not been finalized. Taiwan remains one of the most sensitive fault lines, with Beijing viewing U.S. military support for the island as a direct challenge to its stated sovereignty claims. Rare earth exports, which China dominates globally, have emerged as a potential leverage point in broader technology and trade negotiations.