President Donald Trump announced Thursday that U.S. and Chinese trade officials are set to meet soon, though the exact location remains undetermined. The news follows a substantial 90-minute phone call between Trump and Chinese President Xi Jinping, which Trump described as “very good” and focused primarily on trade issues. He expressed optimism about the discussions, stating that they “resulted in a very positive conclusion for both countries” on his social media platform, Truth Social.
The U.S. delegation for the upcoming meeting will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. While details surrounding the call and the forthcoming meeting are limited, Trump emphasized that there should be clarity regarding the complexities of rare earth products-a critical issue in trade discussions. Notably, the conversation did not touch on geopolitical matters involving Russia, Ukraine, or Iran.
Trump also revealed that Xi extended an invitation for him and first lady Melania Trump to visit China, to which he responded positively. Earlier in the day, both Beijing’s Ministry of Foreign Affairs and China’s embassy in the U.S. confirmed that the call had been initiated by Trump.
Investor sentiment was initially buoyed by news of the Trump-Xi call, signaling hopes for a breakthrough in the protracted trade stalemate between the two nations. However, stock market gains quickly faded as traders awaited further details from the conversation. The ongoing trade tension, valued at nearly $600 billion in 2024, continues to impact Trump’s broader tariff strategies, which have direct implications on the U.S. economy.
The strained trade relations had escalated recently, prompting Trump to express eagerness to speak with Xi. While both sides had previously lowered tariffs during constructive talks in Switzerland, those agreements appeared to be backsliding. The Trump administration has accused Beijing of delaying its commitments to export critical minerals, a contentious topic stemming from previous negotiations.
China has reciprocated by voicing strong objections to new restrictions on Chinese student visas imposed by the U.S. government. Moreover, there’s considerable tension over U.S. warnings against the use of Chinese semiconductors and additional export restrictions on chips deemed necessary for national security.
The recent call was only the second one-on-one discussion between Trump and Xi this year. Their first conversation occurred on January 17, before Trump’s inauguration. As the phone call approached, Trump praised Xi but shared his frustration about negotiating, 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!”
China has been a focal point of Trump’s trade policy, which aims to recalibrate America’s international trading relationships. In April, he had increased tariffs on Chinese imports up to 145%, while temporarily reducing duties on products from other nations to 10%. In response, Beijing retaliated with tariffs of up to 125% on U.S. goods, effectively creating a trade embargo. However, there were signs of thawing relations after mid-May, when talks in Geneva yielded positive results according to both sides.
This article will continue to be updated as more developments emerge.
— Contributions from CNBC’s Evelyn Cheng and Christina Wilkie.
Original Source: https://www.cnbc.com/2025/06/05/trump-held-call-with-xi-chinese-media-says.html
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Publish Date: 2025-06-05 20:38:00
