President Donald Trump is "likely" to speak with Chinese President Xi Jinping this week, according to a statement from the White House.

The announcement comes at a moment of rising trade tensions between the world’s two largest economies, following mutual accusations of violating a temporary trade agreement brokered in Geneva just weeks earlier.

The mid-May Geneva deal was intended to ease tariffs and restart stalled rare earth exports, but the fragile truce appears to be under strain. U.S. officials have accused China of delaying export licenses for rare earth minerals, vital to sectors such as electronics, defence, and renewable energy. In turn, Beijing claims the United States has breached the agreement through continued sanctions on Chinese tech firms and restrictions on critical software exports.

Rare earth elements - such as gallium, germanium, and antimony - have emerged as a key flashpoint. The U.S. asserts that China is leveraging its dominance over the global supply of these minerals to apply pressure amid broader economic tensions. China, for its part, insists that its export controls are lawful and grounded in national security considerations, accusing Washington of economic bullying.

The dispute has cast a shadow over global supply chains, prompting the U.S. to explore partnerships with other countries to diversify its access to rare earth resources. At the same time, China is seeking to strengthen its position by deepening its control over processing and refining capacities, which remain heavily concentrated within its borders.

The uncertainty surrounding U.S.-China trade relations has rippled through financial markets. Initial optimism following the Geneva accord quickly gave way to renewed volatility as disputes reemerged. Adding to the complexity, a U.S. trade court recently ruled that tariffs introduced under Trump’s administration may have exceeded executive authority. However, a federal appeals court has since temporarily reinstated those tariffs, pending further legal review.

Both the U.S. and China are now at a crossroads, with this week’s expected conversation between the two leaders seen as a critical opportunity to prevent a deeper breakdown in trade relations.

Analysts believe that a direct dialogue between Trump and Xi could help stabilise the situation, but acknowledge that long-standing structural issues remain unresolved. With global markets, supply chains, and geopolitical alliances at stake, the outcome of these talks could shape the next phase of the U.S.-China economic rivalry.

The White House has not specified an exact date for the call but confirmed it is in the works.

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