The president is trying to fix the bad economy the previous administration left for him. But it hasn’t been easy.
And Trump just made a phone call that will have massive implications on the economy.
On Thursday, President Donald Trump engaged in a significant phone call with Chinese President Xi Jinping, addressing critical trade issues between the United States and China. The conversation, lasting roughly 90 minutes, aimed to navigate the complex economic and security dynamics shaping relations between Washington and Beijing.
A Productive Exchange on Trade
“I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal,” Trump announced in a Truth Social post on Thursday. He described the discussion as focusing “almost entirely” on trade, highlighting its positive outcome for both nations.
The call included mutual invitations, with Xi inviting Trump and First Lady Melania Trump to visit China, while Trump extended a reciprocal invitation to Xi and his wife, Peng Liyuan.
— Rapid Response 47 (@RapidResponse47) June 5, 2025
Context of the Call
Chinese media reported that the call was initiated at Trump’s request, a detail corroborated by White House National Economic Council Director Kevin Hassett, who noted on ABC News that such a conversation was anticipated. The dialogue follows a turbulent period in U.S.-China trade relations, marked by Trump’s public criticism of China’s adherence to a trade agreement reached in May.
Trade Deal Challenges
The agreement saw the U.S. reduce tariffs on Chinese imports from 145% to 30%, with China reciprocating by lowering its tariffs on U.S. goods from 125% to 10%. However, tensions flared when Trump accused China of failing to honor the deal.
“The bad news is that China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US,” he stated in a Friday social media post, adding, “So much for being Mr. NICE GUY!” He refrained from detailing specific violations.
U.S. Trade Representative Jamieson Greer elaborated on CNBC, asserting that China had not lifted its non-tariff barriers as stipulated. “The United States did exactly what it was supposed to do, and the Chinese are slow-rolling their compliance, which is completely unacceptable and has to be addressed,” Greer stated.
China’s Response and Diplomatic Push
In response, China called on the U.S. to rectify its approach. “China once again urges the US to immediately correct its erroneous actions, cease discriminatory restrictions against China and jointly uphold the consensus reached at the high-level talks in Geneva,” stated Chinese embassy spokesperson Liu Pengyu on Friday.
Diplomatic Context
The invitation for Xi and Peng to visit the U.S. occurs against a backdrop of heightened U.S. scrutiny of Chinese student visa holders. Trump’s administration has intensified efforts to limit visas for Chinese students, with the president threatening to “aggressively” rescind them.
This policy shift adds complexity to the diplomatic overtures extended during the call, highlighting the delicate balance between economic negotiations and national security concerns.
The Trump-Xi conversation signals a continued effort to address trade frictions through dialogue, even as both sides grapple with compliance issues and differing priorities. The mutual invitations suggest an openness to diplomacy, but the path forward remains fraught with challenges as both nations navigate their economic and strategic interests.
Stay tuned to The Federalist Wire.
