US-China Trade War: Trump, Xi agree to resume US-China trade talks after ‘very positive’ phone call

In a key diplomatic move, President Donald Trump announced that the United States and China will resume stalled trade talks after what he described as a “very positive” phone conversation with Chinese President Xi Jinping. The hour-and-a-half-long call marked the first direct engagement between the two leaders since Trump returned to the White House in January.

Following the call, Trump posted on his social media platform: “Our respective teams will be meeting shortly at a location to be determined.”

Top US officials, including Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and US Trade Representative Jamieson Greer, will lead the American delegation in negotiations.

Also Read:Trump says he's ‘no longer Mr Nice Guy’ as China trade tensions flare up again

Mutual invitations and subtle tensions

Trump shared that Xi had “graciously” invited him and First Lady Melania Trump to visit China, and he extended a reciprocal invitation for Xi to come to the US. The Chinese foreign ministry confirmed that Trump initiated the call and revealed that Xi used the opportunity to urge Washington to ease punitive measures against China.

The ministry also quoted Trump as saying, “the US loves to have Chinese students coming to study in America,”—a statement that comes amid visa restrictions his administration is pursuing.

During the discussion, Xi reportedly used a nautical metaphor to describe their relationship: “The two sides need to ‘take the helm and set the right course’ and to ‘steer clear of the various disturbances and disruptions.’”

Tariffs trimmed, but tensions far from over

While both sides have taken steps to de-escalate—Trump dropping tariffs on Chinese goods from 145 per cent to 30 per cent for a 90-day period, and China cutting its tariffs on US imports from 125 per cent to 10 per cent—analysts remain cautious, AP reported.

Craig Singleton of the Foundation for Defense of Democracies said the call may have "paused escalation" but didn’t address the deeper friction.
“We’re likely one competitive action away from further confrontation,” he warned.

Gabriel Wildau of consultancy Teneo echoed the sentiment, stating the conversation “prevented derailment of trade talks but produced no clear breakthroughs on key issues.”

Bigger battle looms behind the scenes

Trade tensions between the world’s two largest economies go beyond tariffs. The US has criticised China for withholding rare earth minerals, while Beijing is upset over restrictions on chip sales and student visas. Trump’s administration also continues to push for reindustrialising the US and reducing dependency on Chinese manufacturing.

China, on the other hand, is keen to maintain momentum in its tech ambitions especially in electric vehicles and AI as it battles a sluggish economy hit by the real estate crisis and post-pandemic woes.

Xi, according to the Chinese foreign ministry, reassured Trump that “the Chinese always honor and deliver what has been promised,” but added that China will negotiate only “within its principles.”

Also Read:China’s Rare Earth Magnet Ban: Threat to India’s auto sector? How analysts view EV space now 

A strained path forward

Trump has grown increasingly vocal in his frustration, posting recently: “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”

Still, Thursday’s call is being seen as a crucial step toward resetting strained ties, even as both nations keep their guard up.With $295 billion in trade imbalance reported in 2024 and no resolution on core issues, the road ahead remains rocky—but at least, for now, both sides are talking.

(With inputs from AP)