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- President Donald Trump and Chinese President Xi Jinping held a phone call on June 5, 2025, amid ongoing trade tensions.
- This is their first known call since the tariff war escalated and the first since President Trump’s inauguration.
- The call aimed to address violations of a temporary trade truce agreed upon on May 12.
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2-Minute Digest
Essential Context
The phone call between President Trump and Xi Jinping occurred at President Trump’s request, as both countries navigate a complex trade dispute. A temporary truce on May 12 reduced U.S. tariffs on Chinese goods from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%. However, the agreement has been marred by accusations of violations from both sides.
Core Players
- President Trump – President of the United States
- Xi Jinping – President of China
- Scott Bessent – U.S. Treasury Secretary
- U.S. Trade Representative Jamieson Greer
Key Numbers
- 145% – Original U.S. tariff rate on Chinese goods before the May 12 truce
- 30% – Reduced U.S. tariff rate on Chinese goods after the May 12 truce
- 125% – Original Chinese tariff rate on U.S. goods before the May 12 truce
- 10% – Reduced Chinese tariff rate on U.S. goods after the May 12 truce
- 90 days – Duration of the temporary trade truce
- 275,000 – Number of Chinese students in the U.S. whose visas may be revoked
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The Catalyst
The call between President Trump and Xi Jinping was prompted by escalating tensions over trade. President Trump accused China of violating the May 12 agreement by withholding products, including rare earth minerals. China, in turn, alleged that the U.S. was undermining the deal with new export control guidelines on AI chips and plans to revoke Chinese student visas.
Treasury Secretary Scott Bessent expressed confidence that the issues would be resolved during the call, stating, “I am confident that when President Trump and President Xi have a call, that this will be ironed out.”
Inside Forces
The trade dispute has been marked by internal dynamics within both countries. The U.S. has been pushing for China to adhere to the terms of the temporary truce, while China has accused the U.S. of provoking new economic and trade frictions. The situation is further complicated by the U.S. decision to impose new export control guidelines and consider revoking visas for Chinese students.
The Chinese Embassy in Washington confirmed the call, stating it occurred at President Trump’s request.
Power Dynamics
The relationship between President Trump and Xi Jinping has been tense, particularly since the escalation of the tariff war. President Trump has described Xi as “VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”, reflecting the challenging nature of their negotiations.
Despite these challenges, both leaders are under pressure to resolve the trade issues to avoid further economic instability.
Outside Impact
The ongoing trade war has significant broader implications. Experts warn that a complete disengagement between the U.S. and China could severely impact the global economy, leading to plummeting demand for industrial commodities and disruptions in supply chains.
The situation is closely watched by global markets, with any developments likely to influence economic stability and trade relations worldwide.
Future Forces
The outcome of the call between President Trump and Xi Jinping will be crucial in determining the next steps in the trade negotiations. If the issues are resolved, it could pave the way for a more substantive agreement. However, if the tensions persist, it may lead to further escalation of tariffs and economic instability.
Key areas to watch include the resumption of exports, the lifting of new export control guidelines, and the status of Chinese student visas in the U.S.
Data Points
- May 12, 2025: Temporary trade truce agreed upon, reducing tariffs.
- June 5, 2025: President Trump and Xi Jinping hold phone call to address trade disputes.
- 90 days: Duration of the temporary trade truce.
- 275,000: Number of Chinese students in the U.S. whose visas may be revoked.
- $21.7M: U.S. lobbying spending by companies affected by the trade war in 2023.
The ongoing trade tensions between the U.S. and China highlight the complex and delicate nature of global trade relations. The outcome of the recent call between President Trump and Xi Jinping will be pivotal in shaping the future of trade between these two economic powerhouses.
