U.S. President Donald Trump and Chinese President Xi Jinping spoke by phone on Thursday to address escalating trade disputes, China’s embassy in Washington confirmed.
The call, which China said was requested by Trump, comes as a fragile 90-day tariff rollback agreement faces renewed pressure from both sides.
Details of the conversation were not disclosed, and the White House has yet to comment. The call is the first confirmed high-level contact between the two leaders since the temporary trade truce was agreed on May 12.
The 90-day deal reduced a series of triple-digit tariffs, sparking optimism in financial markets. However, tensions have since resurfaced, particularly over China’s suspension of critical mineral exports and U.S. restrictions on semiconductor technologies and design tools.
Trump has accused Beijing of breaching the agreement, citing issues including export controls and political influence campaigns. In response, the U.S. administration doubled tariffs on Chinese steel and aluminum to 50%. China denied violating the truce and warned of possible countermeasures.
“The year-end holiday shopping season and global supply chains are at stake,” noted one trade analyst, as investors closely watch for signs of a durable resolution.
The phone call follows China’s traditional reluctance to arrange direct talks between top leaders without first resolving working-level disagreements. Still, Trump has emphasized his belief in leader-to-leader diplomacy to break deadlocks. While he has praised Xi’s leadership style, the broader U.S. stance identifies China as its top geopolitical and economic rival.
Trump and Xi last met in person at the G20 summit in Osaka in 2019. Xi’s most recent visit to the U.S. was in November 2023, during a summit with then-President Joe Biden, which resulted in agreements on military communication and fentanyl cooperation.
With key issues unresolved—including trade balances, Taiwan, and the role of state subsidies—Thursday’s call marks a high-stakes attempt to stabilize relations. Whether the contact leads to renewed negotiations or deepens the divide remains to be seen.
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