Former U.S. President Donald Trump and Chinese leader Xi Jinping spoke on Thursday, as trade negotiations between the two countries remain at a standstill, stirring uncertainty in global markets. According to China’s foreign ministry, Trump initiated the call, though the White House did not immediately comment on the conversation.
The call came just one day after Trump voiced frustration over the difficulty of reaching an agreement with Xi, despite expressing personal admiration for him. “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 posted on social media.
Negotiations had stalled following a May 12 agreement where both countries pledged to lower tariffs temporarily to facilitate talks. The U.S. reduced tariffs from 145% to 30% for 90 days, and China dropped its rates on American goods from 125% to 10%. However, mutual accusations and strategic competition have kept tensions high. The U.S. has criticized China for withholding exports of essential minerals, while China has pushed back against American restrictions on semiconductor sales and student visas.
U.S. Treasury Secretary Scott Bessent previously indicated that only direct communication between Trump and Xi could get the discussions moving again. Even with talks potentially resuming, deep policy divisions remain. Trump aims to reduce U.S. dependence on Chinese manufacturing and promote domestic industry, while China is focused on advancing in key technologies like electric vehicles and artificial intelligence.
In 2024, the U.S. trade deficit with China stood at $295 billion, according to Census Bureau data. Although China’s manufacturing sector has bolstered its global influence, the country is grappling with a sluggish economy due to a lingering real estate crisis and the aftereffects of pandemic-related restrictions.
The Thursday call was the first direct contact between Trump and Xi since January, just days before Trump left office. At that time, they also discussed trade and Trump’s concerns about the flow of fentanyl into the U.S. from China.
While Trump has at times expressed confidence in reaching a breakthrough with China, his recent remarks show growing impatience. “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” he posted last week. “So much for being Mr. NICE GUY!”