Big Power Move: Trump Reignites China Talks

Chinese and American flag sleeves shaking hands

President Trump and Xi Jinping will exchange state visits after their “very positive” 90-minute phone call aimed at reducing the $295 billion trade imbalance that has strained US-China relations.

Key Takeaways

  • President Trump and Chinese President Xi Jinping have agreed to reciprocal state visits following their first call since Trump returned to office
  • The 90-minute call led to agreements on trade talks addressing tariffs and rare earth mineral supplies, with temporary tariff reductions to 30% for US and 10% for China
  • Trump described the call as “very positive” while acknowledging Xi is “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH”
  • The US ran a $295 billion trade imbalance with China in 2024, highlighting the persistent economic challenges between the two nations
  • The conversations deliberately avoided geopolitical tensions involving Russia, Ukraine, and Iran, focusing instead on economic cooperation

Historic Phone Call Restarts US-China Dialogue

President Donald Trump has confirmed his first official conversation with Chinese President Xi Jinping since returning to office, describing the 90-minute call as productive and forward-looking. “President Donald Trump said Thursday that his first call with Chinese leader Xi Jinping since returning to office was ‘very positive,'” Trump stated in remarks following the call. The conversation marks a significant step in addressing the complex trade relationship that has seen escalating tariffs and restrictions in recent years. Both leaders have agreed to hold comprehensive trade talks aimed at resolving tariff issues and securing critical rare earth mineral supplies that are essential to American manufacturing and defense industries.

The call comes as both nations seek to manage economic tensions while avoiding discussion of sensitive geopolitical issues including Russia, Ukraine, and Iran. According to information from both governments, the leaders engaged in substantive dialogue about the trade imbalance, which reached $295 billion in 2024. As a temporary measure, Trump has reduced tariffs on Chinese goods to 30% for a 90-day period, while China has reciprocated by decreasing taxes on American goods to 10%, creating a window for more comprehensive negotiations to take place.

State Visits Signal New Diplomatic Push

In a significant development that underscores the importance both nations place on their bilateral relationship, President Trump and President Xi have exchanged invitations for state visits. “During the conversation, President Xi graciously invited the First Lady and me to visit China, and I reciprocated,” Trump confirmed in his statement. This exchange of invitations represents the first time the leaders will meet in person during Trump’s current administration. The visits would follow their previous diplomatic exchanges, including Trump’s trip to China in November 2017 and Xi’s visit to Mar-a-Lago in April of that same year.

“The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,” Trump said, highlighting the productive nature of their conversation.

While the Chinese foreign ministry confirmed the call took place, their official statements notably omitted any mention of the reciprocal visits, focusing instead on economic cooperation and Xi’s request for the removal of American tariffs and other restrictions. Chinese state media has emphasized Xi’s call for bilateral relations to move in what he termed “the right direction,” suggesting a desire to reset the relationship while addressing specific economic grievances.

Persistent Challenges in Trade Relations

Despite the positive tone of the call, both leaders acknowledge the significant challenges that remain. Trump has been candid about the difficulties in negotiating with his Chinese counterpart, stating, “I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” This assessment reflects the president’s pragmatic approach to what has become one of America’s most complex international relationships. The administration faces the difficult task of addressing China’s dominance in rare earth minerals, unfair trade practices, and intellectual property theft while maintaining economic cooperation.

“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump has noted regarding previous trade commitments.

Future negotiations will involve senior officials from the Treasury Department, Commerce Department, and the Office of the U.S. Trade Representative, demonstrating the whole-of-government approach the administration is taking to address trade imbalances. The $295 billion trade deficit with China represents a significant economic challenge that the Trump administration is determined to reduce through strategic negotiations. While the phone call has paused immediate trade escalation, experts note that core tensions between the world’s two largest economies remain unresolved and will require sustained diplomatic engagement to address effectively.

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