President Trump and Chinese President Xi Jinping have agreed to reciprocal state visits following a 90-minute phone call that paused escalating trade tensions and set the stage for renewed negotiations on tariffs and rare earth minerals.
Key Takeaways
- President Trump characterized his first call with Chinese President Xi since returning to office as “very positive” and lasting approximately 90 minutes.
- Both leaders exchanged invitations for state visits, with Trump confirming he will visit China and host Xi in the United States.
- The call resulted in agreements to hold trade talks addressing tariffs and rare earth mineral supplies, temporarily reducing U.S. tariffs on Chinese goods to 30% for 90 days.
- Despite the diplomatic progress, significant challenges remain with the U.S. running a $295 billion trade imbalance with China in 2024.
- The Chinese foreign ministry stated that Xi requested the removal of U.S. negative measures against China during the call.
Trump-Xi Call Establishes Diplomatic Momentum
President Donald Trump confirmed Thursday that he engaged in a lengthy and productive conversation with Chinese President Xi Jinping, marking their first official communication since Trump returned to the White House. The 90-minute call covered critical economic issues and resulted in agreements to pursue further negotiations on trade imbalances and tariffs. This diplomatic exchange represents a potential thawing in relations that have been strained by economic competition and policy disagreements over the past several years.
The discussion included mutual invitations for state visits, with Trump confirming both his planned trip to China and Xi’s upcoming visit to the United States. Trump had previously visited China in November 2017, while Xi visited Mar-a-Lago in April of that same year. This renewal of personal diplomacy signals both leaders’ commitment to addressing economic challenges through direct engagement rather than continued escalation of trade barriers.
Trade Relations Take Center Stage
The call produced tangible results for both nations, with Trump temporarily reducing tariffs on Chinese goods to 30% for a 90-day period, while China similarly cut taxes on American imports to 10%. These good-faith measures create space for negotiators to address more complex structural issues in the trading relationship. Future discussions will involve senior officials from the U.S. Treasury, Commerce Department, and Trade Representative’s office, demonstrating the administration’s whole-of-government approach to addressing trade concerns.
“The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,” Trump said. “During the conversation, President Xi graciously invited the First Lady and me to visit China, and I reciprocated.”
Central to the upcoming negotiations will be China’s dominant position in rare earth minerals, which are essential components in advanced technology manufacturing. The U.S. seeks to reduce dependence on Chinese supplies of these critical materials while addressing a persistent trade imbalance that reached $295 billion in 2024. This deficit remains a key concern for the Trump administration, which has consistently emphasized more balanced trade relationships with major economic partners.
Challenges Remain Despite Diplomatic Progress
While the call represents a positive step in U.S.-China relations, significant obstacles remain. Trump has grown increasingly skeptical about the prospects for a comprehensive trade agreement, having previously expressed frustration with China’s adherence to past commitments. The relationship continues to be complicated by accusations regarding critical mineral exports, restrictions on advanced semiconductor chips, and limitations on student visas.
“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” Trump said. “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US.”
Chinese state media confirmed the call but notably omitted any mention of the reciprocal state visit invitations, instead focusing on economic cooperation. According to official Chinese accounts, Xi emphasized the importance of steering the bilateral relationship in the right direction and explicitly requested the removal of American trade restrictions and other punitive measures. These differing public narratives highlight the continuing tension beneath the diplomatic niceties.
Economic Stakes and Security Concerns
The renewed dialogue comes as both nations face domestic economic pressures. The United States continues to grapple with inflation and manufacturing competitiveness, while China confronts slowing growth and property market challenges. Despite these shared economic concerns, fundamental differences in goals and approaches persist, with the U.S. focused on fair market access and intellectual property protection, while China prioritizes technological self-sufficiency and industrial policy objectives.
The call strategically avoided contentious geopolitical issues such as Taiwan, the South China Sea, and human rights concerns, allowing both leaders to focus on areas where progress might be more achievable. This pragmatic approach reflects Trump’s emphasis on economic priorities while setting aside ideological differences that might impede practical negotiations on trade and investment.
As preparations begin for the reciprocal state visits, the administration will face the delicate task of balancing economic cooperation with China against broader national security concerns and the expectations of American workers and businesses who have been adversely affected by trade imbalances. The coming months will reveal whether this renewed diplomatic engagement can produce substantive improvements in the complex U.S.-China relationship.
