Trump speaks to China's Xi in bid to ease trade war fueled by tariffs

Yahoo

2 days ago

President Donald Trump spoke by phone to China's Xi Jinping Thursday in a bid to ease the trade war he started by slapping massive tariffs on products imported from the world's biggest manufacturing powerhouse.
There were no immediate details of any progress in the call, the two leaders' first direct talks since Trump returned to the White House for his second term on a mission to reorient global trade relations.
The conversation was confirmed by the Chinese foreign ministry, which said Trump initiated the call. The White House did not immediately comment.
The call came hours after Trump called Xi a formidable negotiating rival.
'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 his social media site.
Trade negotiations between the United States and China stalled shortly after a May 12 agreement between the two countries to reduce their tariff rates while talks played out.
The U.S. accuses China of preventing the export of critical minerals, and the Chinese government objects to America restricting its sale of advanced chips and its access to student visas for college and graduate students.
Trump reduced his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks. China also reduced its taxes on U.S. imports from 125% to 10%.
The roller coaster on tariffs has caused sharp swings in global markets and threatens to hamper trade between the two countries.
Treasury Secretary Scott Bessent had suggested that only a conversation between Trump and Xi could resolve these differences so that talks could restart in earnest. The underlying tension between the two countries may still persist.
Trump wants to lessen America's reliance on Chinese imports, which fueled a $295 billion trade deficit last year.
China wants to continue its historic dominance of global manufacturing and expand its hold on technologies such as electric vehicles and artificial intelligence that could be crucial to securing its economic future.
Trump and Xi previously spoke in January, three days before Inauguration Day.