U.S. President Donald Trump and Chinese President Xi Jinping held a phone conversation on Thursday in an attempt to ease escalating trade frictions between Washington and Beijing.
According to sources familiar with the matter, President Trump initiated the discussion, aiming to reconcile fresh disputes that have arisen in the ongoing trade saga. While both countries reached an interim accord back in mid-May 2025, tensions have recently resurfaced as officials from each side accused the other of breaching or failing to honor the agreement.
The provisional deal led both governments to roll back tariffs that had exceeded 100%—measures widely believed by economists to have virtually halted bilateral trade. The intention was to create space for more comprehensive negotiations, which showed little progress prior to Thursday’s call.
Following the phone meeting, Trump described the exchange as very positive for both countries in a message posted on Truth Social. He revealed plans for a follow-up summit focused on ironing out a permanent trade framework, stating that additional particulars would be disclosed soon.
President Trump also indicated plans to visit China following his phone discussions with President Xi, underscoring the high stakes as leaders work to defuse tensions and solidify a path forward for bilateral trade.
Negotiators face a looming deadline of August 12 to finalize a longer-term arrangement. Should they fail, the U.S. is set to reinstate tariffs of 145% on imports from China, and Beijing is expected to raise its tariffs on U.S. goods back to 125%.
In advance of the call, President Trump and senior U.S. officials had charged China with not fully withdrawing retaliatory measures implemented during the height of the trade war, which culminated in March. For its part, Beijing accused the United States of undermining the accord by imposing new obstacles, such as updated export restrictions on artificial intelligence chips.
