U.S. President Donald Trump and Chinese leader Xi Jinping held a phone conversation at a critical moment, as trade tariff negotiations between the world’s two largest economies have stalled, causing instability in global trade.
The news was confirmed by the Chinese Ministry of Foreign Affairs, which stated that the call was initiated by Trump. The White House has not immediately commented following the conversation.
Just one day prior, Trump acknowledged the difficulty of reaching a deal with the Chinese leader.
“I like President Xi of China, I’ve always liked him and always will, but he is very tough and extremely difficult to make a deal with!!!” Trump posted on social media Wednesday.
Trade negotiations between the U.S. and China broke down shortly after a temporary agreement on May 12, which aimed to reduce tariffs to facilitate further talks. However, ongoing tensions over economic dominance pushed both sides toward confrontation, according to the Associated Press.
The U.S. has accused China of blocking exports of critical minerals, while China has objected to U.S. restrictions on the sale of advanced microchips and student visa limitations for Chinese university students.
In an attempt to ease the tense climate, Trump temporarily lowered tariffs on Chinese goods from 145% to 30% for a 90-day period, while China reduced its tariffs on U.S. goods from 125% to 10%. Still, these moves triggered significant volatility in financial markets and heightened the risk of a deeper trade clash.
U.S. Treasury Secretary Scott Bessent emphasized that a direct conversation between Trump and Xi might be the key to unlocking the impasse and restarting serious negotiations. Yet, despite the resumption of contact, tensions remain palpable.
