Trump and Xi Hold Call, Raising Hopes for Trade War De-escalation
The direct talks, initiated by Washington, come after a recent trade truce faltered amid mutual accusations.
Trump’s Push for Direct Talks with Xi
U.S. President Donald Trump and Chinese President Xi Jinping held their first phone conversation in months, a development that has rekindled hopes for a de-escalation in the trade conflict between the two economic powers.
The call took place on the evening of June 5, Beijing time, at the request of the American president, according to China’s Foreign Ministry. Few other details about the discussion were released. The last known conversation between the two leaders was in January, prior to Trump’s inauguration.
Trump has long maintained that direct talks with Xi are the only way to resolve their differences. The Chinese leader, however, has been more hesitant, preferring to let his advisors handle key negotiations. The call is now widely seen on both sides as a top-level political endorsement for easing a trade war that threatened to reshape global commerce for decades.
Just a day earlier, Trump described his counterpart as “very tough” and “extremely difficult to negotiate with.” In a post on the Truth Social platform, Trump wrote, “I like President Xi of China, I always have and always will, but he is very tough and extremely difficult to negotiate with.”
Stalled Progress After May Agreement
Relations have soured in recent weeks, with each side accusing the other of violating a fragile trade truce. Market analysts hope the conversation will pave the way for a breakthrough.
Last month, the two nations reached a temporary trade agreement that would have seen U.S. tariffs fall from 145% to 30%, while China would relax its import duties to 10%. Beijing also committed to lifting restrictions on exports of critical minerals. However, that deal came with a 90-day deadline to start more comprehensive talks, which have since stalled over misunderstandings and differing expectations.
U.S. Trade Representative Jamieson Greer acknowledged in an interview with CNBC that while China had removed some tariffs, it had “delayed” on implementing other measures, suggesting the agreement was not being fully honored.
Fentanyl Looms Over Negotiations
The issue of fentanyl has also re-emerged as a major sticking point. Trade sources believe that “no further progress on tariffs will be made unless there is an agreement on this issue.” Beijing has submitted two proposals to curb the flow of chemical precursors used by Mexican cartels to produce the synthetic opioid, but Washington has yet to respond.
