In a rare and highly anticipated phone call, former U.S. President Donald Trump and Chinese President Xi Jinping addressed escalating tensions over trade and critical mineral exports. The conversation, which lasted over an hour on Thursday, marked a pivotal moment in efforts to ease growing friction between the world’s two largest economies.
The call came as global markets reacted nervously to worsening U.S.-China relations, especially surrounding the export of rare earth minerals. These materials—vital for manufacturing electronics, electric vehicles, and military hardware—have become a major point of contention following China’s decision in April to halt their export to the U.S.
According to the Chinese government, Xi urged Trump to back away from policies that have “roiled the global economy,” and warned against provocative actions regarding Taiwan. He also stressed the need for the U.S. to view bilateral progress “realistically” and to withdraw punitive trade measures.
Trump, however, painted a more optimistic picture on social media. He said the conversation ended on a “very positive note” and emphasized the importance of upcoming lower-level trade talks between U.S. and Chinese officials. He added that there should “no longer be any confusion regarding the complexity of Rare Earth products.”
The phone conversation comes amid the implementation of a fragile 90-day agreement signed in May, which temporarily rolled back some of the aggressive tariffs both countries had imposed on each other. Yet, despite the stock market’s initial positive reaction, the underlying tensions—ranging from trade imbalances to Taiwan and fentanyl trafficking—remain unresolved.
Trump announced that a U.S. delegation, including Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, would soon meet with their Chinese counterparts. The location and date of the talks have not yet been disclosed.
The stakes couldn’t be higher. China’s rare earth export ban has already disrupted global supply chains and raised alarms in industries reliant on these resources. Analysts suggest that Beijing is using this leverage to exert political pressure on Trump, especially as the 2025 election season heats up and economic concerns mount.
Adding a touch of diplomacy, both Trump and Xi extended invitations for future visits to each other’s countries—a move signaling a potential thaw, or at least a willingness to keep communication channels open.
Although the exact timeline of their previous conversations remains unclear, Thursday’s call was reportedly requested by Trump himself.
The last confirmed in-person meeting between the two leaders occurred at the G20 Summit in Osaka, Japan, back in 2019. Xi’s most recent U.S. visit was in late 2023, during which he met President Joe Biden and agreed on measures to reduce fentanyl exports and restart military communications.
Despite their ideological and geopolitical differences, Trump has repeatedly praised Xi for his political strength and strategic leadership. Yet, the on-again, off-again nature of Trump’s trade policy continues to baffle international observers and unsettle investors.
With global attention fixed on the next steps, this Trump-Xi call could either be the first sign of serious diplomatic progress—or just another chapter in an unpredictable economic standoff.
