US-China Trade: Trump-Xi Talks Offer Hope
Tension eases: A potential phone call between former US President Donald Trump and Chinese President Xi Jinping could be imminent, offering a glimmer of hope for stalled trade talks. Treasury Secretary Scott Bessent revealed this development, aiming to address teh current impasse.The core issue? China’s alleged slow-walking on rare earth exports, crucial for US manufacturing, directly violating terms previously agreed upon. High tariffs continue to fuel the trade war, creating real trouble, but a direct line of communication between leaders could offer a much-needed breakthrough. News Directory 3 is watching developments closely. Will this high-stakes conversation de-escalate tensions and lead to a new deal? Discover what’s next.
Trump, Xi Jinping May Talk Soon Amid Trade Tensions
Updated June 02, 2025
A potential phone call between President Donald Trump adn Chinese President xi Jinping could be on teh horizon to address the current standstill in trade talks, according to Treasury Secretary Scott Bessent. Bessent’s statement comes after Trump accused China of not honoring a previous agreement made in geneva to temporarily lower tariffs.
The U.S. has voiced concerns over China’s slow approval of export licenses for rare earths and other crucial elements needed for car and chip manufacturing. This issue has become a significant point of contention, as reported by The Wall street Journal and confirmed by U.S.officials. The high tariffs imposed by both countries have fueled a trade war.
Despite these challenges, Bessent offered a more optimistic outlook, suggesting that the existing gaps could be bridged through direct dialog between the two leaders. He noted China was “withholding some of the products that they agreed to release during our agreement.”
When questioned specifically about rare earths,Bessent confirmed they were among the products being withheld. He speculated that the holdup could be a “glitch in the Chinese system” or possibly intentional, adding, “We’ll see after the president speaks with” Xi.
Commerce Secretary Howard Lutnick echoed concerns, stating China was ”slow-rolling the deal.” He added, “We are taking certain actions to show them what it feels like on the other side of that equation.”
“I’m confident that when President Trump and Party Chairman Xi have a call that this will be ironed out,” Bessent said.
What’s next
The possibility of a Trump-Xi call raises hopes for a breakthrough in ongoing trade pause negotiations. Weather this direct engagement can resolve the current sticking points, especially regarding rare earth exports, remains to be seen. The global market is watching closely to see if this potential dialogue can de-escalate trade tensions.