In a pivotal moment for U.S.-China relations, President Donald Trump is gearing up for a phone call with Chinese President Xi Jinping this week. The conversation comes as friction mounts over China’s ongoing restrictions on exporting rare-earth elements critical for technologies like batteries, industrial magnets, and advanced equipment. A White House official confirmed to the New York Post that the call is not scheduled for Monday but is expected soon.
A Fragile Trade Agreement
On May 12, after intense negotiations in Geneva, Switzerland, the U.S. and China struck a deal to ease crippling tariffs that had nearly frozen bilateral trade. The agreement saw the U.S. reduce duties on Chinese goods from a staggering 145% to 30%, while China lowered its tariffs from 125% to 10%. Trump hailed the deal as a step toward “open” China’s economy, signaling a potential thaw in the trade war that has strained relations.
However, China’s continued restrictions on rare-earth exports—17 metallic elements vital for products like lasers, wind turbines, and electric vehicles—have reignited tensions. China dominates global processing of these materials, giving it significant leverage in trade disputes.
Trump’s frustration boiled over on Friday when he took to social media, writing, “The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”
Escalating Stakes and Strategic Moves
The trade dispute has taken on new dimensions with recent U.S. actions. Last week, the State Department announced plans to revoke visas for tens of thousands of Chinese students in the U.S., a move seen as a possible response to China’s export policies.
Treasury Secretary Scott Bessent, who spearheaded the May trade reset, addressed the issue on CBS’ Face the Nation Sunday. He noted that China’s restrictions are disrupting industrial supply chains not just in the U.S. but also in India and Europe.
“What China is doing is they are holding back products that are essential for the industrial supply chains of India, of Europe. And that is not what a reliable partner does,” Bessent said, suggesting the restrictions might be intentional or a bureaucratic misstep.
The trade war’s roots trace back to January when Trump, upon resuming office, imposed a 20% tariff increase on Chinese goods, citing the export of illicit synthetic opioids like fentanyl, which has claimed roughly 300,000 American lives over the past five years, according to the Centers for Disease Control and Prevention.
By April, the situation escalated as Trump introduced “reciprocal tariffs” targeting countries with significant trade imbalances. China retaliated, sparking a cycle of escalating tariffs that drove trans-Pacific trade to a near standstill.
A Path Forward?
Despite the tensions, optimism persists in some quarters. White House economist Kevin Hassett, appearing on ABC News’ This Week Sunday, expressed confidence in the upcoming Trump-Xi call.
“President Trump, we expect, is going to have a wonderful conversation about the trade negotiations this week with President Xi, that’s our expectation,” Hassett said. “I’m confident that when President Trump and Party Chairman Xi have a call, that this will be ironed out.”
As the world watches, the outcome of this dialogue could shape not only U.S.-China trade relations but also global supply chains for critical technologies. With both leaders poised to address the dispute, the coming days may prove decisive.
The Fairview Gazette will keep you updated on any news regarding Trump’s call with Xi Jinping.
