Trump and Xi’s 90-Minute Call: A Turning Point in U.S.-China Trade Tensions, or Just Political Theater?

The U.S.-China relationship has long been marked by competition and mistrust. But amid rising economic tensions and an escalating tariff war, President Donald Trump and Chinese President Xi Jinping held a rare 90-minute phone call that could signal a shift—or simply set the stage for the next round of strategic brinkmanship.

A long-awaited call with cautious optimism

On June 5, 2025, President Donald Trump confirmed that he had a “very good” phone call with President Xi Jinping, focusing “almost entirely” on trade. Trump, writing on Truth Social, said the conversation “resulted in a very positive conclusion for both countries,” and that trade talks between Washington and Beijing would soon resume.

This marks only the second direct conversation between the two leaders this year, following their January exchange just before Trump’s inauguration. Xi reportedly invited Trump and First Lady Melania Trump to visit China—an invitation Trump said he accepted.

Backdrop: When trade tensions turn into economic warfare

Since early 2024, the Trump administration has aggressively raised tariffs on Chinese imports to as much as 145%, arguing it is necessary to recalibrate America's trade relationships. Beijing retaliated with 125% tariffs on key American exports, including agriculture and semiconductors.

Beyond tariffs, the U.S. has:

Imposed new restrictions on student visas for Chinese nationals,

Warned U.S. industry against using Chinese semiconductors,

Enforced new export bans on critical chips and components.

Beijing has accused Washington of undermining mutual trust and violating previous trade understandings—particularly a pledge made in Geneva this May to expand China’s rare earth mineral exports to the U.S., a promise Washington says Beijing is slow-walking.

Trade talks to resume: Who’s leading the U.S. side?

Trump announced that the new U.S. negotiating team would be led by:

Scott Bessent, Secretary of the Treasury

Howard Lutnick, Secretary of Commerce

Jamieson Greer, U.S. Trade Representative

The Geneva talks in May were considered productive, with both sides agreeing to temporarily reduce retaliatory tariffs. However, no permanent resolution was reached.

Trump’s tone: Friendly but frustrated

Even before the call, Trump posted a telling message on social media:

“I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!”

This reflects a now-familiar Trump strategy—balancing personal diplomacy with public pressure. With U.S. markets wobbling and farmers in Republican strongholds feeling the sting of Chinese tariffs, Trump may be trying to soften his stance without appearing weak.

Global markets react with skepticism

While markets initially rose on news of the call, the reaction was lukewarm overall. Analysts say past negotiations between the U.S. and China have often collapsed amid new political escalations. A Bloomberg economist commented:

“This feels like a halftime break, not the end of the trade war.”

Wall Street, for now, remains cautious.

Conclusion: One phone call won't solve it all

Though the call may signal renewed dialogue, the structural issues remain unresolved:

Strategic rivalry in technology

Deep distrust in trade enforcement

Political posturing on both sides

If no real concessions follow, this call may be remembered more as a symbolic pause than a substantive reset. Still, in a world where trade stability is increasingly rare, even small gestures between superpowers deserve close scrutiny.

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