Trump engages China’s Xi to address trade tensions and reduce tariffs in ongoing trade dispute.
In an effort to mitigate the ongoing trade conflict between the United States and China, President Donald Trump engaged in a telephone conversation with Chinese President Xi Jinping on Thursday. This marks the first direct communication between the two leaders since Trump resumed his presidency, aiming to recalibrate international trade relations.
The conversation has been acknowledged by the Chinese Foreign Ministry, which stated that Trump took the initiative to make the call. At this time, the White House has not released any commentary regarding the dialogue or its outcomes.
This communication follows Trump’s recent remarks that Xi is a “formidable negotiating rival.” In a post on his social media platform, he expressed admiration for Xi while also noting the challenges in reaching agreements with the Chinese leader. The telephone call occurs against a backdrop of stalled trade negotiations that had briefly revived following a May 12 accord to reduce tariffs as discussions progressed.
Currently, the United States has accused China of obstructing the export of essential minerals, while Beijing has raised concerns over U.S. restrictions on the sale of sophisticated semiconductors and limitations on Chinese students’ access to educational opportunities in the U.S. In a notable concession, Trump has reduced the previously imposed tariffs on Chinese imports from 145% to 30% for a temporary period of 90 days to pave the way for discussions. Correspondingly, China has lowered its tariffs on American goods from 125% to 10%.
The volatility surrounding tariff adjustments has resulted in significant fluctuations in global markets and poses a potential threat to the trade dynamics between the two nations. Treasury Secretary Scott Bessent has indicated that meaningful progress may hinge on direct discussions between Trump and Xi, suggesting that underlying tensions will likely remain unresolved without continued dialogue.
Trump’s goal appears to be decreasing America’s reliance on Chinese imports, which contributed to a staggering trade deficit of 5 billion in the previous year. Meanwhile, China is intent on maintaining its historic status as a global manufacturing leader, while also seeking to enhance its influence in technology sectors critical for future economic stability, such as electric vehicles and artificial intelligence.
The previous communication between Trump and Xi occurred in January, just ahead of the presidential inauguration, indicating the continued importance of these conversations in navigating U.S.-China relations. As both countries approach a critical juncture in their economic interactions, the outcomes of these exchanges will be scrutinized by global markets and policymakers alike.
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