First direct contact since Trump&rsquo;s return focuses on trade reset amid tariff-driven uncertainty
 In a significant yet delicately poised diplomatic outreach, US President Donald Trump held a high-level phone conversation with Chinese President Xi Jinping on Thursday, marking the first publicised dialogue between the two since Trump&rsquo;s return to office in January. The conversation comes at a volatile juncture in US&ndash;China relations, particularly after both nations accused each other of undermining the fragile trade d&eacute;tente brokered just weeks ago in Geneva.
The hour-and-a-half-long call, as characterised by President Trump, ended on what he termed a &ldquo;very positive conclusion.&rdquo; Trade delegations from both sides are now expected to reconvene shortly, raising hopes of potential stabilisation in a relationship battered by years of tariff warfare and mutual recriminations.
President Xi, however, issued a more restrained assessment, calling for a &ldquo;correction of course&rdquo; in bilateral ties&mdash;language that, though diplomatic, hints at deeper discontent within Beijing over the Trump administration&rsquo;s increasingly hawkish trade posture. Notably, China&rsquo;s statement stopped short of affirming any breakthrough, focusing instead on the need for &ldquo;mutual respect and coordination.&rdquo;
Trump also revealed that Xi had extended a formal invitation for a state visit, which he accepted, with an announcement on the timing of the meeting expected soon. Yet, in a telling omission, the two leaders reportedly did not discuss the ongoing Russian invasion of Ukraine&mdash;an issue where Washington has long sought Chinese pressure on Moscow.
Instead, the call centred firmly on economic matters, particularly critical supply chain dependencies like rare earth elements&mdash;resources pivotal to both nations' tech sectors. Trump reaffirmed that trade remains the &ldquo;primary concern&rdquo; and hinted that both nations were exploring avenues to resolve frictions around these essential materials.
Since April, the Trump administration has reimposed sweeping tariffs across the global trade landscape, with China bearing the brunt. American duties on Chinese imports have climbed as high as 145%, triggering retaliatory Chinese levies of up to 125% on US goods. The tit-for-tat pattern has disrupted industrial supply chains and fuelled economic uncertainty, especially in key sectors like semiconductors, green tech, and pharmaceuticals.
 While the Trump&ndash;Xi call may suggest a tentative thaw, the underlying dynamics remain complex and combustible. The renewed dialogue reflects mutual recognition that continued economic escalation is unsustainable. Yet, with both leaders under domestic pressure&mdash;Trump from protectionist constituencies and Xi amid slowing growth&mdash;the road to a meaningful recalibration is fraught. Any progress will likely be piecemeal and transactional, especially in the absence of broader strategic trust. The rare earths discussion hints at a pragmatic pivot, but unless tariff regimes are substantively rolled back, the structural fissures in US&ndash;China trade ties are likely to endure.

Chinese president Xi Jinping and US president Donald Trump (image source: social media)

Leaders discuss rare earths and tariffs, but structural US–China trade rift still persists

Trump–Xi Talk Hints at Trade Reset, Risks Remain

Leaders discuss rare earths and tariffs, but structural US–China trade rift still persists

June 6, 2025 | 15:04 IST

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