President Trump’s hour-and-a-half phone call with Xi Jinping has reignited hopes of ending the trade war, with both leaders agreeing to reciprocal state visits and potential tariff rollbacks.
At a Glance
- President Trump and Xi Jinping held a 90-minute phone call focused on trade tensions.
- Both leaders agreed to reciprocal visits aimed at deepening bilateral engagement.
- Discussions included easing China’s export controls on rare-earth minerals.
- U.S. and China paused tariffs for 90 days, reducing rates to 30% and 10% respectively.
- Leaders avoided contentious issues, emphasizing trade over geopolitics.
Diplomatic Reset
In their first official interaction since Trump began his second term, the U.S. president and Chinese leader Xi Jinping held a 90-minute call that could mark a turning point in global trade dynamics. The two reaffirmed commitments to dialogue and cooperation, agreeing to visit each other’s countries in the coming months. This development followed nearly two years of escalating tariffs and fractured communication that had chilled Sino-American relations.
The conversation, confirmed by multiple official sources, focused exclusively on trade, deliberately steering clear of thornier geopolitical issues such as Taiwan or military posturing in the South China Sea. Instead, both leaders emphasized reducing tariffs and expanding market access as top priorities, signaling a mutual desire to cool tensions.
Watch a report: Trump, Xi reset trade relations with new dialogue.
Easing the Minerals Monopoly
One of the most consequential elements discussed was China’s stranglehold on rare-earth minerals—resources crucial for electronics, defense technologies, and clean energy innovation. Trump pushed for China to loosen its export restrictions, a move that could rebalance a market long skewed in Beijing’s favor.
Analysts note that even symbolic gestures of trade openness from China could substantially lower U.S. manufacturing costs and improve supply chain resilience. For Beijing, this could help rebuild trust and project reliability amid intensifying scrutiny from Western regulators. It remains unclear how far China is willing to go, but Xi’s invitation to Trump suggests openness to deeper economic engagement.
Tariffs on Pause, Tensions on Ice
After years of tit-for-tat escalation, the two nations agreed to a 90-day tariff freeze, with U.S. duties dropping to 30% and China’s falling to 10%. The temporary pause is widely seen as a gesture of goodwill and a strategic opportunity to negotiate longer-term solutions. At their height, tariffs on key goods reached an unsustainable 145%, causing collateral damage across global markets.
Still, unresolved issues linger. China’s state media reiterated its position that the U.S. must “eliminate all kinds of interference,” referencing past accusations of Geneva agreement violations. Trump, for his part, cited the call as “very good,” indicating optimism for future deals—but political observers remain cautious.
With state visits on the horizon, the next round of diplomacy may define the contours of the U.S.-China relationship for years to come. Whether the goodwill translates into binding policy changes will be closely watched by allies and rivals alike.
