According to economist Jeffrey Schott from the Peterson Institute for International Economics (PIIE), the upcoming meeting between U.S. President Donald Trump and Chinese President Xi Jinping at the APEC Summit 2025 could mark a turning point in U.S.–China trade relations.
Years of Trade Tension Have Caused Long-Term Damage
For years, export restrictions and high tariffs imposed by both nations have disrupted global supply chains.
Many companies have been forced to seek alternative suppliers outside of the U.S. and China, reducing efficiency and driving up production costs.
Schott noted that extreme tariff measures — such as the previously threatened 100% import tariffs — have proven economically harmful to both sides, dampening trade growth and investment in the medium and long term.
Both Sides Now Seek to Reduce Risks
Currently, both Washington and Beijing appear to recognize the economic and political risks of a prolonged trade war.
While a complete removal of tariffs may not happen soon, the two leaders are expected to pursue a de-escalation of trade tensions, possibly focusing on:
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Energy and high-tech sectors
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Semiconductor supply chains
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Agricultural and light industrial goods
Schott believes that a more moderate tariff framework could help stabilize markets and restore global investor confidence.
A Positive Signal for the Global Economy
If the U.S. and China move toward reducing trade barriers, it could generate a positive domino effect across the global economy by:
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Easing inflationary pressures in the U.S. and emerging markets
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Reviving disrupted global trade flows
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Reinforcing APEC’s role as the most important economic dialogue forum in the Asia-Pacific region
Experts suggest that the APEC Summit 2025 could mark the beginning of a new phase of cooperation between the world’s two largest economies.
Follow MMO Daily for the latest updates on U.S.–China trade policies, global economics, and key developments from the APEC 2025 Summit.