Trump and Xi Jinping Finally Talk: Will This End the US-China Trade Deadlock?

US President Donald Trump and Chinese President Xi Jinping have held their long-anticipated phone conversation, according to Chinese state media. Though details remain scarce, the call is confirmed to have taken place at Trump’s request—making it their first direct contact since Trump assumed office.

The White House has not yet released an official statement, but the timing alone signals the importance of the exchange. The call comes as negotiations between the world’s two largest economies have hit a standstill. Treasury Secretary Scott Bessent recently acknowledged the talks are currently “stalled,” raising concerns over the fate of a fragile trade agreement signed in May.

That deal had temporarily reduced tariffs by 115 percentage points for a 90-day window, offering a brief period of relief. However, that truce is now under pressure. Tensions resurfaced after Trump publicly took aim at Xi, describing him as “extremely hard to deal with” on social media—a rare direct jab at the Chinese leader.

Thursday’s call adds another layer to an already unpredictable week of trade-related developments. From Asia to Europe and Washington, the tone surrounding US-China trade has shifted from cautious optimism to renewed skepticism.

At the center of the dispute is a growing list of grievances. Washington accuses Beijing of breaching the 90-day agreement by refusing to ease restrictions on critical minerals—vital components used in everything from smartphones and electric vehicles to defense systems and medical devices. China has fired back, with its Ministry of Commerce denying any wrongdoing and instead pointing to US actions it claims are undermining the agreement.

While the May pact was once praised by Trump as a "total reset," it now appears to be hanging by a thread. Key sticking points such as semiconductor access, rare earth exports, and enforcement transparency continue to block progress.

Trump-Xi phone call may be less about immediate results and more about whether diplomacy can still find a foothold in what’s become a complex and high-stakes standoff.

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