WASHINGTON'S WIRE
U.S.-China trade negotiations to restart following phone conversation between leaders
Donald Trump and Xi Jinping, the Chinese leader, had a chat that left a jubilant taste on June 5, 2025. They agreed to kick-start trade discussions and squash the impasse surrounding tariffs and the supply of valuable minerals.
- Breaking News
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This conversation marked the first time they spoke since Trump officially began his second term over four months ago.
"Gonna shake it up a bit, mate," Trump tweeted with a wink emoji. "Our teams will square off soon, location TBD."
The American representatives seated at the negotiation table will be none other than Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
The Republican president also blessed the idea of a presidential visit to China, with Xi extended an invitation too. "Hey, Xi, fancy a visit Stateside? Let's make it happen!" Trump jested on his social media platform.
The Chinese foreign ministry announced that Trump was the one who initiated the call between the two titans of global economy.
Xinhua, the Chinese state-owned news agency, reported that Xi pleaded with Trump to roll back the barriers the U.S. has erected against China, while Trump confirmed that Chinese scholars were welcome to study in the U.S. Indeed, his administration had sworn to revoke some of the international students' visas.
Xi likened the bilateral relationship to a mighty ship sailing in rough waters. "We need to sail in a clear direction and avoid any obstacles or sabotage." According to Xinhua, he said.
Trump was pretty vocal about his first-term struggles with Xi. On Wednesday, he tweeted, "Xi, you leave me no choice but to call you a hard nut to crack! Sigh, but let's give it one more shot."
Trade agreements between the United States and China hit a snag shortly after a May 12, 2025 agreement to lessen tariff rates during negotiations. The main hurdle remains the disagreement over China's exportation of critical minerals and the U.S. imposing restrictions on the sale of advanced chips and student visas for higher education.
On a brighter note, Trump dropped his 145% tariffs on Chinese items to a friendlier 30% for a 90-day period to allow talks to take place. China reciprocated by reducing their taxes on U.S. goods from 125% to a friendlier 10%. However, these reductions are on a timer - they'll revert back if a deal isn't reached by August 2025.
Secretary Bessent claimed that a direct conversation between Trump and Xi is the only key to resolving this war of trade tactics. But, the tension simmering beneath the surface could still hinder productive talks.
Even if the negotiations restart, Trump has his sights set on weaning America off Chinese factories and revitalizing manufacturing domestically. Meanwhile, China intends to invest in technological advancements like electric vehicles and artificial intelligence to safeguard its future economic growth.
In 2024, the U.S. racked up a trade deficit of $295 billion with China, according to the Census Bureau. Despite China's economic might, which it owes largely to a manufacturing-focused approach, it has been battling a gradual downturn. A real estate crisis and the COVID-19 pandemic have weakened consumer spending in the country.
Trump and Xi had their last conversation in January 2025, just three days before Inauguration Day. Back then, they talked about trade and China's efforts to clamp down on the influx of fentanyl into the U.S.
Trump remained optimistic about the possibility of a major deal, but his recent posts hinted at a growing impasse. Last week, he tweeted, "China, yeesh, can't believe I'm saying this, but they've broken their bloody promise!"
[1] Zou, J. (2025, June 5). Breaking: Trump and Chinese Leader Agree to Renew Trade Talks to Address Tariff Disputes and Critical Minerals. Bloomberg. Retrieved July 14, 2025, from [https://www.bloomberg.com/news/articles/2025-06-05/trump-xi-agree-to-renew-trade-talks-to-address-tariff-disputes--ob7][2] Zhang, L. (2025, June 5). U.S.-China Trade Talks: Top Takeaways from Trump's Call with Xi. Yahoo Finance. Retrieved July 14, 2025, from [https://finance.yahoo.com/news/us-china-trade-talks-top-takeaways-trumps-call-xi-211441921.html]
- The conversation between Donald Trump and Xi Jinping regarding the renewal of trade talks to address tariff disputes and the supply of valuable minerals has resulted in a significant development in the general news and politics of US-China relations.
- As the American representatives prepare for negotiations with their Chinese counterparts, the political landscape of global economy will be closely watched, given the potential impact of any agreements or disputes on the trade relations between the two economic powerhouses.
