Trump, Xi Agree to Resume U.S.–China Trade Talks Amid Tariff Standoff

The conversation, which lasted approximately 90 minutes, focused almost entirely on trade issues, according to a statement from President Trump. He described the exchange as “very good” and said it concluded positively for both countries.

Trump confirmed that Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer will lead the American delegation in the upcoming talks. The meeting location has not yet been announced.

The renewed engagement follows a series of escalations in the ongoing trade war. In April, the Trump administration imposed blanket tariffs of up to 145% on Chinese imports. Beijing responded with retaliatory duties of 125% on U.S. goods, leading to what many experts described as an effective trade embargo.

Both sides appeared to ease tensions during talks in Geneva last month, where they agreed to temporarily reduce some tariffs. However, Washington later accused China of delaying action on promises to boost exports of critical minerals to the U.S., including rare earth elements.

The Chinese Foreign Ministry and its embassy in Washington confirmed that Thursday’s call was initiated by President Trump. The conversation marks the second time this year the two leaders have spoken directly, following a previous call in January.

During the call, Xi extended an invitation to President Trump and First Lady Melania Trump to visit China. Trump said he accepted the invitation, though no timeline has been set.

Markets reacted to the news of the call, with early trading marked by volatility as investors assessed the impact of renewed negotiations. Stocks moved between gains and losses throughout the morning.

Despite the positive tone of the call, Trump reiterated his criticism of China’s trade practices. He also commented cryptically on social media, stating, “There should no longer be any questions respecting the complexity of Rare Earth products,” without elaborating further.

Tensions between the two nations remain high on several fronts. China has criticized recent U.S. restrictions on student visas and voiced opposition to new warnings against the use of Chinese semiconductors in American industries. The Biden administration has cited national security in justifying its actions, while Beijing views them as politically motivated and damaging to recent trade progress.

No other international matters were discussed during the call, according to Trump. “We did not talk about Russia, Ukraine, or Iran,” he posted.

The U.S.–China trade relationship totaled nearly $600 billion in 2024. While both countries have expressed interest in reaching a more stable framework, significant disagreements over market access, technology, and security continue to stand in the way.