Trump just flew to South Korea to meet with Chinese President Xi Jinping face-to-face, trying to sort out the tariff mess that’s been hammering crypto markets for months. Before the meeting, Trump sounded pretty optimistic, saying, “We’ve already agreed to a lot of things, and we will agree to some more right now.”
The trade war between these two countries has been brutal for Bitcoin . Remember that October 10th crash when BTC tanked from $121,560 down below $103,000? That was directly tied to escalating tariff threats and China’s retaliation with rare earth export limits.
Neither country wants to wreck the global economy, which is why they’re sitting down in person to figure this out. US officials are signaling Trump probably won’t follow through on his threat to slap an additional 100% import tax on Chinese goods. In return, China’s expected to ease up on rare earth export controls and maybe buy some American soybeans as a goodwill gesture.
This matters hugely for crypto because Bitcoin miners in America rely heavily on hardware imports from Southeast Asia, especially Malaysia, which currently faces a 19% tariff. Those tariffs have made mining equipment way more expensive for US operators trying to expand.
China’s rare earth restrictions have also scared people in the AI sector since over 80% of global rare earth processing happens there, and that impacts advanced semiconductors needed for crypto innovations.
Conclusion
The Trump-Xi meeting in South Korea aims to resolve trade tensions, including tariffs and rare earth export limits that contributed to Bitcoin’s October crash from $121,560 to below $103,000.
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