Trade war: Trump, Xi speak amid deadlock over tariffs; what was discussed

President Donald Trump and Chinese President Xi Jinping spoke on Thursday for the first time since Trump’s return to office, in a high-stakes phone call that came amid renewed strain in the fragile US-China trade truce.


The call, confirmed by Chinese state media and later elaborated on by Trump himself via Truth Social, lasted approximately 90 minutes and focused “almost entirely on TRADE,” Trump said. The White House did not issue a formal statement.

“I just concluded a very good phone call with President Xi,” Trump wrote. “The call lasted approximately one and a half hours and resulted in a very positive conclusion for both countries.”

Trump said the two leaders discussed “some of the intricacies” of their trade deal and confirmed that follow-up meetings between delegations would happen soon. The US team will include Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer.

Trump also noted that Xi had “graciously invited” him and First Lady Melania Trump to visit China, an invitation he said he reciprocated.

Notably, Trump added, “Nothing was discussed concerning Russia/Ukraine or Iran.”

Chinese state media also highlighted the conversation, quoting Xi as urging the two sides to “correct the course” of their rocky relationship.

“Correcting the course of the big ship of Sino-US relations requires us to steer well and set the direction, especially to eliminate all kinds of interference and even destruction, which is particularly important,” Xi said, according to Xinhua.

The conversation follows heightened tensions in recent weeks after the US accused China of violating a May truce by restricting exports of critical rare earth minerals. These materials are vital to US manufacturing, especially in the auto and semiconductor sectors. Shortages have triggered fears of production halts in some American factories.

In retaliation, the Trump administration proposed revoking visas for certain Chinese students and curbing the sale of high-tech components, including those used in jet engines and semiconductors.

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Beijing denied breaking the Geneva agreement and countered that its rare earth controls apply globally, not just to the US. Analysts suggest China is keen on preserving leverage, with Yun Sun of the Stimson Center noting, “The Chinese are reluctant to give up their leverage so easily. They want to wait and see how things go.”

The May Geneva talks had temporarily de-escalated a trade war that saw US tariffs on Chinese goods soar to at least 145%, with China responding in kind. The two sides agreed to a 90-day pause, during which negotiators aimed to find long-term solutions.

However, on Wednesday, Trump reignited uncertainty by calling Xi “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” in a post.

While Thursday’s call may help ease immediate tensions, both sides now await the next round of negotiations—this time with trade delegations facing mounting pressure to prevent another economic rupture.