We present results from two observations (combined exposure of ~17 ks) of galaxy cluster A2218 using the Advanced CCD Imaging Spectrometer on board the Chandra X-ray Observatory that were taken on October 19, 1999. Using a Raymond-Smith single temperature plasma model corrected for galactic absorption we find a mean cluster temperature of kT = 6.9+/-0.5 keV, metallicity of 0.20+/-0.13 (errors are 90 % CL) and rest-frame luminosity in the 2-10 keV energy band of 6.2x10^{44} erg/s in a LambdaCDM cosmology with H_0=65 km/s/Mpc. The brightness distribution within 4.2 of the cluster center is well fit by a simple spherical beta model with core radius 66.4 and beta = 0.705 . High resolution Chandra data of the inner 2 of the cluster show the x-ray brightness centroid displaced ~22 from the dominant cD galaxy and the presence of azimuthally asymmetric temperature variations along the direction of the cluster mass elongation. X-ray and weak lensing mass estimates are in good agreement for the outer parts (r > 200h^{-1}) of the cluster; however, in the core the observed temperature distribution cannot reconcile the x-ray and strong lensing mass estimates in any model in which the intracluster gas is in thermal hydrostatic equilibrium. Our x-ray data are consistent with a scenario in which recent merger activity in A2218 has produced both significant non-thermal pressure in the core and substructure along the line of sight; each of these phenomena probably contributes to the difference between lensing and x-ray core mass estimates.