President Donald Trump announced on Thursday that the United States and China will resume trade talks following a “very positive conclusion” in his conversation with Chinese leader Xi Jinping.
The discussions aim to break an impasse over tariffs and global supplies of rare earth minerals.
The big picture: The call between the two leaders marked the first conversation since Trump began his second term more than four months ago.
- “Our respective teams will be meeting shortly at a location to be determined,” Trump announced on Truth Social.
- Representing the U.S. side in the upcoming negotiations will be Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
Go deeper: During the call, Xi “graciously” invited Trump and first lady Melania Trump to visit China, to which Trump reciprocated with an invitation for Xi to visit the United States.
- The Chinese foreign ministry noted that it was Trump who initiated the call between the leaders of the two largest economies in the world.
- Xi urged Trump to “reverse the negative measures” imposed by the U.S. against China and emphasized the importance of eliminating interference and sabotage in the bilateral relationship, according to Xinhua, the Chinese state media outlet.
Driving the news: The trade negotiations between the U.S. and China hit a standstill shortly after an agreement on May 12 to reduce tariff rates, with the ongoing competition for economic advantage being the main cause of the impasse.
- Both countries have accused each other of unfair trade practices, with the U.S. alleging China’s reluctance to export critical minerals, and China objecting to America’s restrictions on its advanced chip sales and access to student visas for Chinese students.
- Trump had previously lowered tariffs on Chinese goods from 145% to 30% for 90 days to allow for negotiations, while China also reduced its taxes on U.S. goods from 125% to 10%. These actions led to volatile swings in global markets and posed a threat to trade between the two nations.
- In 2024, the United States experienced a trade imbalance of $295 billion with China, according to the Census Bureau. China, meanwhile, has been managing a slowing economy following a real estate crisis and pandemic-related lockdowns that weakened consumer spending.
