US President Donald Trump is set to speak with Chinese President Xi Jinping this week as trade tensions escalate, with new tariffs on Chinese goods set to take effect.
U.S. President Donald Trump is expected to speak with Chinese President Xi Jinping this week, according to White House press secretary Karoline Leavitt. The conversation comes at a critical moment as the two economic powers navigate rising trade tensions.
Trump, who took office on January 20, has not spoken to Xi since before his inauguration. The upcoming call follows his decision to impose a 10% tariff on all Chinese goods, set to take effect on Tuesday. While this measure falls short of his campaign pledge for a 60% tariff, Trump described it as an "opening salvo" and signalled the possibility of further increases.
On Saturday, Trump ordered sweeping tariffs on imports from Mexico, Canada, and China, citing efforts to curb the flow of illegal fentanyl into the United States. However, he later withdrew the tariffs on Mexico and Canada, while those on China remain in place.
The U.S. maintains that China is the primary source of precursor chemicals used by drug cartels in Mexico to produce fentanyl, a major contributor to the opioid crisis. Trump warned that tariffs could rise substantially if China does not take stronger action. China, which has historically opposed tariffs, responded with measured criticism while expressing openness to negotiations.
The Chinese government appears willing to seek an agreement that could delay or halt the new tariffs, according to sources familiar with the matter. Meanwhile, financial markets reacted to the uncertainty, with the U.S. dollar reaching a record high against the offshore Chinese yuan on Monday.
As both sides prepare for talks, the outcome could have significant implications for global trade and economic stability.
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