TRUMP-XI Deal Stuns Experts — No One Expected This

President Trump’s first phone call with Xi Jinping since returning to office has led to unprecedented mutual state visits, marking a potential turning point in the complex US-China trade relationship burdened by a massive $295 billion deficit.

Key Takeaways

• President Trump and President Xi engaged in a 90-minute call that resulted in reciprocal state visit invitations to boost trade relations
• The leaders agreed to resume trade talks focused on reducing tariffs and addressing rare earth mineral supplies, temporarily reducing tariffs to 30% and 10% respectively
• Both nations are attempting to reset economic relations while avoiding contentious geopolitical topics like Russia-Ukraine and Iran
• The US continues to face a significant $295 billion trade imbalance with China that Trump’s administration is determined to address
• Despite the positive developments, experts note that core tensions remain unresolved between the world’s two largest economies

Diplomatic Breakthrough After 90-Minute Call

President Donald Trump announced a significant diplomatic breakthrough following his lengthy conversation with Chinese President Xi Jinping. The call, which lasted approximately 90 minutes, resulted in mutual invitations for state visits between the leaders of the world’s two largest economies. This development represents the first major diplomatic engagement between Trump and Xi since Trump’s return to office, and signals a potential shift in the often tense US-China relationship that has been characterized by trade disputes and economic competition over the past several years.

“The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries,” said President Donald Trump. “During the conversation, President Xi graciously invited the First Lady and me to visit China, and I reciprocated.”

Trade Talks Resume Amid Ongoing Tensions

The phone conversation between the two leaders focused primarily on trade issues, deliberately avoiding more contentious geopolitical topics. Both sides agreed to restart trade negotiations that will address the substantial tariffs currently in place, as well as China’s control over critical rare earth minerals essential for American manufacturing and technology sectors. As a temporary measure, Trump has reduced tariffs on Chinese goods to 30% for a 90-day period, while China has responded by lowering taxes on US goods to 10%.

“President Donald Trump said Thursday that his first call with Chinese leader Xi Jinping since returning to office was ‘very positive,’” said President Donald Trump.

The Chinese foreign ministry confirmed that Trump initiated the call, during which Xi requested the removal of what he termed “negative measures” against China. The planned trade talks will involve representatives from the US Treasury, Commerce Department, and Trade representatives, indicating the serious nature of the negotiations and the administration’s commitment to addressing the persistent trade imbalance that has disadvantaged American workers and businesses for decades.

Historical Context and Remaining Challenges

This would not be the first time Trump and Xi have exchanged visits. During Trump’s first term, he visited China in November 2017, while Xi made a trip to Trump’s Mar-a-Lago estate in April of that same year. However, the trade relationship has deteriorated significantly since then, with both nations imposing substantial tariffs and restrictions on each other’s goods. The US continues to run a staggering $295 billion trade deficit with China, a figure that highlights the fundamental imbalance Trump’s administration is determined to correct.

“I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!” said President Donald Trump.

Trump has previously expressed growing pessimism about reaching a comprehensive trade agreement with China, openly accusing Beijing of violating previous agreements. “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” Trump has stated. Despite these challenges, the administration appears committed to finding pathways toward a more balanced trading relationship that protects American jobs and industries while acknowledging China’s significant role in the global economy.

Economic Priorities Take Center Stage

The focus on trade and economic issues during the call reflects the Trump administration’s pragmatic approach to foreign policy, prioritizing America’s economic interests above ideological differences. By avoiding discussions on contentious geopolitical issues like Russia’s war in Ukraine or Iran’s nuclear program, both leaders created space for productive economic dialogue. This strategy aligns with Trump’s consistent emphasis on renegotiating trade relationships to benefit American workers and reduce the nation’s trade deficit.

“He invited me to China and I invited him here,” said Trump.

While Chinese state media confirmed the call took place, their reporting notably omitted mention of the mutual invitations, instead focusing on economic ties. This discrepancy highlights the different priorities and perspectives that continue to characterize the US-China relationship. As both nations move forward with planned negotiations, the Trump administration remains firmly committed to securing favorable terms for American businesses and workers, addressing critical supply chain vulnerabilities, and establishing a more equitable trading relationship with one of America’s most significant economic partners.