Trump and Xi hold call, fresh meetings planned soon
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Trump and Xi in 2019. Photo: Brendan Smialowski/AFP via Getty Images
President Trump and Chinese President Xi Jinping spoke about trade issues for more than an hour Thursday, and Trump said teams from both sides would meet again soon.
Why it matters: Washington and Beijing have accused each other of violating the 90-day trade truce reached three weeks ago, under which both dramatically lowered tariffs and promised further dialogue.
What they're saying: "There should no longer be any questions respecting the complexity of Rare Earth products. Our respective teams will be meeting shortly at a location to be determined," Trump posted on Truth Social.
- Rare earth minerals have been a key sticking point in the fractious relationship.
- China is reportedly withholding exports, angering the Trump administration and potentially compromising high-tech supply chains.
Catch up quick: China's foreign minister claimed this week that the U.S. had "introduced a series of negative measures" since the deal, and that relations were at a "critical juncture."
- A day earlier, a spokesperson for China's Commerce Ministry alleged the U.S. had "seriously undermined" the trade agreement by announcing new AI chip export control guidelines and the revocation of visas for Chinese students. China was prepared to "take resolute and forceful measures," the spokesperson said.
- That came after Trump on Friday claimed China had "totally violated" the tariff pause agreement, and later doubled steel tariffs.
- The escalating rhetoric scared markets, as the tariff pause had contributed directly to a rebound in consumer confidence, CEO confidence and stocks.
State of play: This was first announced call between the two since Jan. 17, three days before Trump took office.
- Trump claimed in April that Xi had called him to discuss tariffs since then, but Beijing denied that.
- As Trump pushed tariffs all the way to 145% in April, Chinese officials suggested Xi was not interested in speaking to Trump unless the U.S. dialed back its aggression both rhetorically and on trade.
- Trump has repeatedly suggested that he and Xi speak directly to work out the trade dispute, and top U.S. officials made clear in recent days that he was itching to get on the phone with Xi.
What to watch: Trump said teams from both sides would meet "shortly," with the U.S. being represented by Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer.
- Bessent and Greer negotiated the May tariff pause; Lutnick has until now publicly deferred to them on China issues.
- Companies with exposure to the rare earth supply chain, including the auto industry, will also be watching closely to see if Trump's assurances turn into an increase in exports.
Editor's note: This story has been updated with additional details from Trump's social media post.
