What Did Trump and Xi Discuss in Their Recent Phone Call? Insights into US-China Trade Relations
Key Takeaways from the Trump-Xi Phone Call
On Thursday, a significant phone conversation took place between Chinese President Xi Jinping and US President Donald Trump, aimed at addressing ongoing tariff disputes. Both leaders agreed to facilitate further discussions among their trade representatives to find a resolution to the trade deadlock.
During the dialogue, Xi urged Trump to approach the Taiwan situation with caution, as reported by the state-run Xinhua news agency, which noted that the call was initiated at Trump's request.
Following the conversation, Trump shared on Truth Social that he had a productive discussion with Xi, focusing on the complexities of their recently established trade agreement. He mentioned that the call lasted about 90 minutes and concluded positively for both nations, emphasizing the importance of rare earth products, which are vital for various industries.
Trump indicated that their teams would soon meet at a yet-to-be-determined location, with key representatives including Secretary of the Treasury Scott Bessent and Secretary of Commerce Howard Lutnick.
Xi extended an invitation for Trump and the First Lady to visit China, which Trump reciprocated, highlighting the significance of their nations' relationship. The conversation primarily revolved around trade, with no discussions on issues like Russia/Ukraine or Iran.
In a press release from Beijing, Xi reiterated China's commitment to the Geneva agreement aimed at reducing tariffs and urged the US to realistically assess the progress made, advocating for the removal of negative measures against China.
Xi emphasized the necessity of dialogue and cooperation, stating that both nations should leverage existing economic and trade consultation mechanisms to achieve mutually beneficial outcomes. He also stressed the importance of handling the Taiwan issue carefully to avoid escalating tensions.
Trump expressed his respect for Xi and acknowledged the importance of the US-China relationship, stating that the US supports a thriving Chinese economy. He reaffirmed the US's commitment to the one-China policy regarding Taiwan.
Both leaders agreed to continue implementing the Geneva agreement and to hold further meetings promptly. Following discussions last month in Geneva, both countries temporarily reduced their retaliatory tariffs, with the truce set to last for 90 days to allow for a more comprehensive agreement.
Trump had previously imposed tariffs of 145% on Chinese exports worth approximately $439.9 billion, to which China responded with 125% tariffs on US exports valued at around $143 billion. Additionally, China has restricted exports of rare earth minerals, crucial for defense and technology sectors.
Under the Geneva agreement, the US reduced tariffs on Chinese goods from 145% to 30%, while China lowered its retaliatory tariffs from 125% to 10%. However, tensions resurfaced when Trump accused China of violating the agreement, although specifics were not provided. US Trade Representative Jamieson Greer later clarified that China had not lifted non-tariff barriers, particularly concerning rare earth metal exports.