Trump and Xi's 90-Minute Trade Call Sparks Fresh Talks Amid Escalating Tensions

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ICARO Media Group
Politics
05/06/2025 16h09

### Trump's 90-Minute Call With Xi Focuses on Trade Amid Ongoing Tensions

In a significant update to the ongoing U.S.-China trade discussions, a 90-minute phone conversation between President Donald Trump and Chinese President Xi Jinping took place at the request of the White House. The call, which occurred Thursday morning, centered primarily on trade issues, according to statements from both Chinese state media and the Chinese foreign ministry.

This marked the first known communication between the two leaders during Trump’s second term, though they did converse prior to Trump's second inauguration in January. Just before 11 a.m., Trump confirmed the duration of the call in a Truth Social post and announced that a follow-up meeting would be held "shortly" between representatives from both countries, with the location yet to be determined.

The U.S. and China have been entangled in a contentious trade war since the early days of Trump’s second administration, with both nations imposing escalating tariffs on hundreds of billions of dollars' worth of goods. Currently, tariffs on Chinese imports into the U.S. stand at a minimum of 30%, a significant reduction from the punitive level of 145% that was in place until a recent handshake agreement in Geneva. This agreement prompted China to lower its tariffs on U.S. imports from 125% to 10%.

However, tensions flared once again when Trump accused China of violating the Geneva agreement, though he did not offer specific details. China responded with similar accusations against the U.S., leading to a renewed strain in relations. During the call, Xi emphasized that China has "earnestly implemented" the terms of the Geneva agreement, calling on the U.S. to withdraw its "negative measures" against China.

Trump remains determined to close the trade deficit with China, which measures the difference between U.S. imports from and exports to China. Fresh data released Thursday showed a sharp drop in the deficit, which fell to $19.7 billion in April—the lowest level since March 2020. This was attributed to the new tariffs having a substantial impact, with the U.S. Commerce Department reporting the largest-ever decline in total imports.

The effectiveness of Trump's tariff strategy is up for debate. Despite numerous promises of imminent trade deals, no substantial agreements have yet materialized. Last month's announcement of a pact with the U.K. has been described as a political gesture rather than a formal trade deal. Critics argue that the tariffs have mainly disrupted global business investment and hiring plans, without delivering concrete benefits.

Adding to the complexity of U.S.-China relations, Trump is also dealing with issues such as the attempt to transfer ownership of TikTok from its Chinese parent company ByteDance, and efforts to curb the influx of illicit fentanyl, which is believed to largely originate from China. Although there has been a decline in fentanyl seizures at the U.S.-Mexico border, progress on negotiations regarding TikTok remains stagnant. A deadline requiring ByteDance to sell TikTok or face a U.S. ban is fast approaching on June 19, setting up a potential third extension.

In summary, while the recent call between Trump and Xi has injected some momentum into U.S.-China trade talks, significant challenges and contentious issues persist, leaving many questions about the future of this crucial bilateral relationship.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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