Trump and Chinese President Xi’s 90-Minute Call Signals Trade Negotiation Restart

• Trump and Xi agreed to resume trade talks after a 90-minute call focused almost entirely on tariffs and rare earth exports.
• Despite diplomatic overtures, U.S. restrictions on semiconductors and Chinese student visas have inflamed tensions.
• Trump says the call ended positively and accepted Xi’s invitation to visit China, hinting at a possible thaw in relations.

President Donald Trump and Chinese President Xi Jinping spoke Thursday in a high-stakes phone call aimed at easing a grinding trade war. According to Trump, the 90-minute chat was “almost entirely” focused on trade issues and ended on a “very positive” note for both sides. The call reportedly came at Trump’s request and followed rising tensions over rare earth exports and semiconductor restrictions.

The two leaders agreed that U.S. and Chinese officials will meet soon to resume formal trade talks. Representing the U.S. side will be Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer. This follows a temporary truce reached in May in Geneva, where both countries agreed to lower retaliatory tariffs.

Rare Earths, Chips, and Frustration Mounting on Both Sides

While the call is being portrayed as a breakthrough, underlying tensions remain unresolved. Trump criticized China for not following through on a pledge to increase rare earth exports to the U.S., while Beijing expressed anger over recent U.S. visa restrictions on Chinese students and warnings against using Chinese-made semiconductors. The White House defended its chip-related export restrictions as necessary for national security, though Beijing views them as retaliatory.

Trump’s comments on Truth Social included an ambiguous note: “There should no longer be any questions respecting the complexity of Rare Earth products.” What exactly he meant remains unclear. Meanwhile, markets were jittery, bouncing on news of the call, which was initially reported by Chinese state media.

Diplomatic Gestures Amid Economic Hostilities

Trump and Xi avoided discussing hot-button geopolitical issues like Russia, Ukraine, or Iran. Instead, the call closed with Xi inviting Trump and the First Lady to visit China—a gesture that Trump said he reciprocated. This marks only the second time the two leaders have spoken this year, the first being in January before Trump’s inauguration.

Despite attempts at diplomacy, Trump has escalated tariffs on Chinese goods up to 145%, a sharp contrast to his 10% rates for other countries. China responded by hiking tariffs on American products to 125%, effectively triggering a trade freeze. Still, the leaders’ call suggests a potential path forward—albeit a narrow one.