TikTok, toy prices and more: What’s at stake in US-China trade talks

1:45 President Donald Trump holds a bilateral meeting with Brazilian President Luiz Inacio Lula da Silva at the Kuala Lumpur Convention Center on October 26, 2025 in Kuala Lumpur, Malaysia. Andrew Harnick/Getty Images

US and Chinese officials expressed optimism over the weekend after talks aimed at averting high tariffs that could ignite a trade war between the world’s two largest economies.

The potential breakout came days before a high-stakes meeting between by US President Donald Trump and Chinese President Xi Jinping, the first face-to-face meeting between the two leaders since Trump took office for a second term.

“I think we’ve reached a substantial framework for two leaders,” Treasury Secretary Scott Bessent said Sunday in an interview with ABC News’ “This Week” Marty Raddatz.

A possible deal is expected to touch on a wide range of issues, including the sale of the social media platform TikTok, US access to key rare earth minerals and China’s soybean market, and a crackdown on fentanyl.

“This has become a conflict that spans almost every aspect of the U.S.-China relationship, going beyond trade,” Meg Rithmire, a professor of business administration at Harvard University, told ABC News. “Both countries are trying to figure out what they can take in terms of pain and what they can get.”

Here’s what you need to know about the key issues at stake in the negotiations and what they could mean for you.

President Donald Trump holds a bilateral meeting with Brazilian President Luiz Inacio Lula da Silva at the Kuala Lumpur Convention Center on October 26, 2025 in Kuala Lumpur, Malaysia. Andrew Harnick/Getty Images

strong class=”vtkaO “>Tariffs and prices for toys

Trump threatened on Saturday to raise tariffs on China by a staggering 100%, bringing tariffs up to 130%, excluding additional sectoral duties. The move could raise prices for board games, consumer electronics, clothing and a host of other goods imported from China.

Tariff hikes could potentially hurt China’s economy. The U.S. imported about $438 billion worth of goods and services from China last year, making it China’s largest export destination. In total, this figure accounts for about 15% of China’s exports, according to the Office of the US Trade Representative.

China currently imposes a 10% tariff on imports from the US, increasing costs. to sell US-grown crops such as soybeans and wheat, as well as oil and gas. If Trump were to raise U.S. tariffs, China could respond with retaliatory tariffs, as it did after what the Trump administration called “Liberation Day” in April, when it imposed a new round of tariffs against global trading partners.

Rare earth minerals and AI chips

Earlier this month, China promised to introduce sweeping new export restrictions on rare-earth minerals, key materials in the production of semiconductors used in everything from artificial intelligence to military weapons and home appliances.

Referring to China’s plans to impose strict controls on rare-earth elements, Bessent said on Sunday that he believed “they’re going to delay it for a year while they check it out.”

Meanwhile, China relies on the US for some critical components of its electronics, cars and technology products, including advanced artificial intelligence chips. In August, Trump authorized chip makers Nvidia and Advanced Micro Devices to sell some chips to China.

Even so, the US is banning exports of its most advanced AI chips in an effort to thwart China in its race to control the fast-growing AI market.

Chinese President Xi Jinping speaks during the fourth plenary session of the 20th Communist Party of China Central Committee in Beijing, Oct. 23, 2025. Xie Huanchi/Xinhua via AP

Soybean farmers

Trump has drawn criticism from some soybean farmers who have suffered heavy losses in the US-China trade war.

China has bought more than half of all US-grown soybeans in each of the past two years. But earlier this year, China stopped buying U.S. soybeans in response to Trump’s tariffs.

On Sunday, Bessent said he expects a potential trade deal between the U.S. and China. soybean sales.

“I think when the announcement of the deal with China comes out, our soybean farmers will have a good feel for what’s going on, both this season and the seasons to come for a number of years,” Bessent told ABC News’ “This Week.”

TikTok

Last month, Trump announced a deal that would pave the way for social media giant TikTok to be taken over by a group of American investors. But China has not given public approval of the deal, leaving the fate of a potential American TikTok in the dark.

The standoff comes nine months after the ban on the Chinese app was due to take effect earlier this year. Instead, Trump has repeatedly delayed the ban and appears poised to provide a popular platform for domestic ownership.

The research focused on the fate of TikTok’s algorithm, the proprietary formula that powers the attention-grabbing social media platform. Vice President J.D. Vank said last month that the deal would put the algorithm “under the control of American investors,” but details on that statement remain limited.

“The TikTok issue seems to be very important to the US, but not so important to China,” Rittmayr said. “China may delay algo approval the rhythm of TikTok. He is delaying this particular part of the deal.”

Fentanyl

Trump has repeatedly criticized China for the majority of the world’s supply of fentanyl, a drug that accounts for nearly 7 out of every 10 overdose deaths in the U.S., according to the Centers for Disease Control and Prevention. The 2024 report of the US House Select Committee on CCP states that “companies in China produce almost all of the banned fentanyl precursors, key ingredients that drive the global illicit fentanyl trade.”

“We agreed that the Chinese would start helping us with the precursor chemicals for this terrible fentanyl epidemic that is ravaging our country,” Bessent said.

Source: abcnews.go.com