US President Donald Trump and his Chinese counterpart Xi Jinping will likely hold a long-awaited phone call later this week, the White House announced on Monday. This potential conversation emerges as trade tensions between the world’s two largest economies escalate significantly. This upcoming discussion holds immense importance for global financial markets and international trade relations, emphasizing the leaders’ direct engagement.
Renewed Trade Frictions
President Trump reignited strains with China last week, asserting that the world’s second-biggest economy had violated a previously agreed-upon deal. This agreement had temporarily reduced significant tit-for-tat tariffs between both nations, aiming for a more balanced trade environment. White House Press Secretary Karoline Leavitt confirmed the impending dialogue, stating, “The two leaders will likely talk this week,” when reporters inquired about the anticipated contact.
Trump and Xi have not had any confirmed contact for over five months since the Republican leader returned to office, despite frequent claims by the US president that a call was imminent. Trump even asserted in an April Time Magazine interview that Xi had called him, a claim Beijing subsequently denied, insisting no recent call had occurred. Stock markets worldwide largely slid on Monday as these US-China tensions resurfaced, reflecting investor concerns about the ongoing trade dispute.
Tariffs and Accusations
In early April, Trump introduced sweeping worldwide tariffs, targeting China most heavily. He accused other countries of “ripping off” the United States and running significant trade imbalances, disrupting established global trade norms. Beijing and Washington had agreed last month to slash staggeringly high tariffs on each other for 90 days after constructive talks between top officials in Geneva.
However, Trump and top US officials in Washington last week accused China of violating the deal, with Commerce Secretary Howard Lutnick telling Fox News Sunday that Beijing was “slow-rolling” the agreement. Beijing immediately rejected those “bogus” US claims on Monday, in turn accusing Washington of introducing “a number of discriminatory restrictive measures,” further complicating the trade landscape.
Moreover, Trump has separately escalated tensions with other trade partners, including the European Union, by vowing to double global tariffs on steel and aluminum to 50% starting Wednesday.
