U.S. President Donald Trump waits for Australia's Prime Minister Anthony Albanese's arrival at the White House in Washington, D.C., U.S. October 20, 2025. REUTERS/Kevin Lamarque

By Andrea Shalal and Jarrett Renshaw

WASHINGTON (Reuters) -U.S. President Donald Trump said on Monday he expects to reach a fair trade deal with Chinese President Xi Jinping and downplayed risks of a clash between the superpowers over the issue of Taiwan.

Trump suggested to reporters that China had no designs on invading Taiwan but acknowledged he expected the issue to be on the agenda at a planned meeting with Xi on the sidelines of an economic conference in South Korea next week.

Trade tensions between the U.S. and China, the world's two biggest economies, have lingered. Disputes over tariffs, technology and market access remain unresolved days before the meeting. Trump's remarks were made ahead of White House talks with Australian Prime Minister Anthony Albanese.

The comments on Taiwan reflect one of the most sensitive issues in U.S.-China relations. Beijing has repeatedly pressed Washington to alter the language it uses when discussing its position on Taiwanese independence.

Trump pledged to accelerate deliveries of nuclear submarines to Australia and was asked if U.S. actions in the waters of the Indo-Pacific were a sufficient deterrent to keep Xi from invading Taiwan.

"China doesn't want to do that," Trump said, before boasting about the size and strength of the U.S. military.

He added: "We have the best of everything and nobody is going to mess with that ... I think we'll end up with a very strong trade deal. Both of us will be happy."

Asked by a reporter whether the U.S. might adjust its position on Taiwan independence in order to reach a trade deal with China, Trump said, "We're going to be talking about a lot of things. I assume that will be one of them, but I’m not going to talk about it now."

Beijing has ramped up a campaign of military and diplomatic pressure on democratically governed Taiwan, which it views as its own territory. China has never renounced the potential use of force to bring Taiwan under its control.

The United States is Taiwan's most important international backer and arms supplier despite the lack of formal diplomatic ties. Beijing regularly denounces any shows of support for Taipei from Washington.

(Reporting by Andrea Shalal in Washington and Jarrett Renshaw in Philadelphia; Editing by Trevor Hunnicutt and Matthew Lewis)