President Trump’s 90-minute phone call with Chinese President Xi Jinping signals potential progress in the ongoing trade tensions between the world’s two largest economies, with both leaders agreeing to immediate follow-up discussions.
At a Glance
- President Trump and Chinese leader Xi Jinping held a 1.5-hour phone call focused solely on trade issues
- Trump announced that U.S. and Chinese teams will meet soon, with Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer representing the U.S.
- A recent trade agreement between the two nations includes a 115% reduction in tariffs while maintaining a 10% baseline tariff
- Trump has accused China of violating the recent trade agreement, which China disputes
- The agreement aims to address the $295.4 billion U.S. goods trade deficit with China recorded in 2024
New Developments in U.S.-China Trade Relations
President Donald Trump announced he had a lengthy phone conversation with Chinese President Xi Jinping, focusing exclusively on trade matters between the two economic powerhouses. The call lasted approximately 90 minutes and resulted in plans for immediate follow-up meetings between representatives from both nations. During the discussion, President Xi extended an invitation for Trump and the First Lady to visit China, though no confirmation of such plans has been announced.
Following the call, Trump specified that high-level officials would represent the United States in upcoming negotiations, including Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and U.S. Trade Representative Ambassador Jamieson Greer. The president emphasized that the conversation focused entirely on trade issues, with no discussion of other global matters such as Russia/Ukraine or Iran situations.
— The White House (@WhiteHouse) May 12, 2025
Recent Trade Agreement Details
The call follows a significant trade agreement reached between the United States and China last month. According to White House statements, both countries agreed to reduce tariffs by 115% while maintaining an additional 10% tariff during a 90-day suspension period. The deal, which went into effect by May 14, 2025, included China’s removal of retaliatory tariffs and suspension of non-tariff countermeasures against the U.S. announced since April 2025.
“Today, the United States issued the first joint statement on trade in many years with China after successful negotiations over the weekend in Geneva, Switzerland”, said President Donald J. Trump.
The United States, for its part, agreed to remove additional tariffs imposed on China in April 2025 but maintained duties that were in place prior to that date. This agreement is part of broader efforts to address the substantial U.S. goods trade deficit with China, which reached $295.4 billion in 2024. The deal also establishes a mechanism for ongoing economic discussions between the two nations.
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— Spotlight on China (@spotlightoncn) May 14, 2025
Tensions and Disagreements
Despite the initial agreement, tensions have persisted. President Trump recently accused China of violating the trade deal, though he acknowledged that his quick action had initially stabilized what could have been “a very bad situation” for China. In his statement, Trump noted that after reaching the agreement, “everything quickly stabilized and China got back to business as usual.”
“I made a FAST DEAL with China in order to save them from what I thought was going to be a very bad situation, and I didn’t want to see that happen. Because of this deal, everything quickly stabilized and China got back to business as usual. Everybody was happy! That is the good news!!!”, added President Trump.
Chinese officials have contested Trump’s violation claims, pointing instead to U.S. actions they view as breaches of the agreement. These include increased export restrictions and reports of attempts to ban international students from Harvard. The disagreement highlights the complex nature of the bilateral trade relationship, which both sides appear committed to addressing through continued negotiations.
Broader Cooperation Efforts
Beyond tariff reductions, the recent trade agreement includes provisions for the United States and China to collaborate on combating the flow of fentanyl and other precursor chemicals to North America. This aspect of cooperation addresses a significant concern for the United States regarding illicit drug trafficking and represents an area where both nations have found common ground despite ongoing trade tensions.
“Unlike previous administrations, President Trump took a tough, uncompromising stance on China to protect American interests and stop unfair trade practices”, concludes Trump.
The upcoming meetings between U.S. and Chinese officials will likely focus on addressing recent disagreements and establishing a path forward for the implementation of the trade agreement. With the 90-day suspension period already in effect, both sides face pressure to resolve their differences and build upon the framework established in the May agreement to create more stable economic relations.
