Trump and Xi Meet in South Korea to Ease Tariff Tensions That Rattled Crypto Markets

U.S. President Donald Trump has finally met up with Chinese leader Xi Jinping in South Korea today in a bid to defuse the escalating trade tensions and reverse the market turmoil sparked by recent tariffs — including the crypto sell-off earlier this month.

The meeting marked the first in-person talks between the two leaders since Trump’s return to the White House. Just weeks before the meeting, Trump had already expressed his optimism for the negotiation claiming that the two sides have already aligned on many points and both parties are only expected to finalize some additional agreements during the conference.

During the video, Trump could be heard saying

“I think we’re going to have a fantastic relationship for a long period of time.”

The talks come after weeks of global market instability driven by tit-for-tat tariffs between Washington and Beijing. Trump’s latest round of import duties, followed by China’s export restrictions on rare earth elements, fueled fears of a prolonged trade standoff — sending crypto and tech stocks tumbling.

Crypto Markets Shaken by Trade Turbulence

The most recent tariff shock on Oct. 10 triggered one of Bitcoin’s sharpest monthly declines. The flagship cryptocurrency fell from $121,560 to below $103,000 within hours, wiping billions in market value and sparking a wider sell-off across digital assets.

Analysts say the combination of trade uncertainty and risk-off sentiment has weighed heavily on the crypto sector, particularly Bitcoin mining and AI-related blockchain projects dependent on Asian imports.

According to U.S. officials, Trump is not expected to proceed with his proposal to double import taxes on Chinese goods, while Beijing may relax restrictions on rare earth exports and resume soybean purchases from U.S. suppliers.

Both governments have reportedly emphasized the importance of avoiding further economic disruption — with Chinese state media describing the meeting as “constructive” and focused on “mutual economic stability.”

Tariff tensions have also spilled into the Bitcoin mining and AI hardware sectors. Malaysia — now a major export hub for Bitcoin miners relocating to the U.S. — remains subject to a 19% American import tariff, compounding costs for U.S.-based operations.

Meanwhile, China’s export limits on rare earths have raised concerns among AI developers over potential bottlenecks in GPU and semiconductor supply, critical components for both blockchain and machine learning infrastructure.

As Trump and Xi look to reset relations, investors across both traditional and digital markets are watching closely — hoping that easing trade friction could bring relief to an increasingly volatile crypto economy.