US-China Trade Talks Resume: On June 5, 2025, U.S. President Donald Trump and Chinese President Xi Jinping had a phone call. The discussion focused on strained trade ties and rare earth exports. Following increasing tariffs and global supply fears, this marked their first conversation in months.
Held at Trump’s request, the call resulted in both sides agreeing to revive stalled US-China trade talks. Trump described the conversation as “very positive,” hinting at improved relations. The move is expected to calm markets and offer hope for easing tensions between the world’s two largest economies.
US-China Trade Talks Resume: Insights
- Trump and Xi held a 90-minute call centered on trade issues.
- The focus was on rare earth minerals and tariff disputes.
- Talks are expected to resume soon, with details still pending.
- Xi urged respect and stronger cooperation between nations.
- China continues restrictions on rare earth exports.
- Trump aims to press Beijing for fairer trade practices.
- Business leaders welcome the move amid fears of global supply.
- Both sides invited each other for official visits.
- The Geneva truce in April had earlier failed to hold.
- Tensions remain high despite signs of a diplomatic thaw.
Background
Trade tensions between the U.S. and China have grown since early 2025. Disputes over tariffs, tech restrictions, and rare earth minerals led to near-stalled exports. In April, both nations agreed in Geneva to ease some trade barriers. However, the truce soon broke down as China maintained limits on rare earth shipments, and the U.S. imposed more tech bans.
These minerals are key for electronics, defense, and auto industries. Amid rising fears of factory slowdowns, Trump pushed for stronger pressure on Beijing. The renewed US-China trade talks now offer a fresh attempt to settle differences.
Main Event
President Trump and President Xi Jinping spoke by phone on June 5, 2025, in a bid to repair trade ties. Trump requested the call, which focused entirely on the trade relationship. Trump posted on Truth Social that the call ended on a “very positive” note. He added that trade teams from both countries will meet soon, though the location is still unknown.
The discussion included the issue of rare earth minerals. These are critical for U.S. industries but have been restricted by China. Trump hinted at progress on mineral exports but offered no specific details. Xi, through Chinese state media, called for better cooperation and fewer negative actions from the U.S.
Both leaders also exchanged invitations for state visits. Trump said they discussed their ongoing trade deal and managed to “straighten it out.” However, the conversation did not include key topics like the Ukraine war or Iran.
This development follows a rocky period after their Geneva truce last month. That agreement promised a 90-day pause in tariffs. Still, both sides later accused each other of not honoring the deal.
Meanwhile, American businesses reliant on Chinese imports face supply issues. Shortages of rare earth elements are affecting car and defense production. Experts caution that trust issues and policy gaps will make the new US-China trade talks tough but necessary for economic stability.
Last month in Beijing, Chinese President Xi Jinping held a phone call with U.S. President Donald Trump. The conversation came as tensions between the two countries deepened following stalled trade negotiations in May.
Photo Credits: Pool photo by Tingshu Wang.
Implications
The resumption of US-China trade talks offers a brief window of relief for global markets. U.S. businesses, especially in tech and defense, hope for a return of rare earth imports. Governments on both sides may see less political pressure as dialogue resumes.
However, uncertainty still clouds the negotiations. Mistrust and past failures could slow progress. China’s grip on key exports remains a major hurdle. Still, ongoing talks may help ease fears of a broader trade war. Experts believe any agreement will take time and significant compromise from both parties.
Conclusion
The new round of US-China trade talks reflects a cautious step forward. While both Trump and Xi signaled goodwill, deep issues remain. Economic and political tensions could still derail progress. Yet, open communication between the two leaders is a key start.
Future meetings may decide the direction of global trade in 2025. As businesses wait for clarity, the world watches closely.
