Trump and Xi Set for High-Stakes Trade Talks Next Week as Tariff Tensions Simmer
- Staff Writer
- Jun 5
- 2 min read
President Donald Trump, who campaigned on prioritizing American interests and ending unfavorable trade deals, has intensified efforts to reshape US trade policy in his second term. The administration has increased tariffs to secure trade deals aligned with Trump’s America First agenda, aiming to level the playing field in global trade.
National Economic Council Director Kevin Hassett expressed optimism about upcoming talks with China, stating, “We expect President Trump to have a productive conversation with President Xi Jinping this week on ongoing trade negotiations.” The meeting, following a 90-day tariff suspension deal reached in Geneva, Switzerland, marks a pivotal moment in US-China trade relations.
The Geneva agreement seeks to de-escalate a tariff war that saw the US impose tariffs up to 145% on Chinese imports, with China retaliating with 125% tariffs and restrictions on rare earth elements. The deal reduced reciprocal tariffs to 10%, though the US maintains a 20% tariff on Chinese imports tied to fentanyl, resulting in a 30% total US tariff rate on China. The conversation between Trump and Xi next week will hopefully continue this negotiation in a positive direction.
A key issue, according to the Trump Administration, is China’s trade surplus, contributing to the US’s global trade deficit. Data from January to March shows a $70.8 billion deficit with China, which the administration argues unfairly boosts China’s economy through high-value exports and technological gains. Meanwhile, US consumers face higher costs from China's unfair trade deals.
A White House joint statement issued on May 12, 2025, announced the potential for continued trade discussions between the US and China. He Lifeng will represent China, while Bessent and Greer will represent the US. The statement outlined that these talks may take place in China, the US, or a mutually agreed-upon third country, underscoring both nations’ commitment to sustained dialogue.
The talks between Trump and Xi coincide with rising military tensions over Taiwan. US Defense Secretary Pete Hegseth warned, “The threat China poses is real and could be imminent. We hope not, but it certainly could be.” Taiwan’s strategic role in the Indo-Pacific is critical, and its loss could allow China to dominate key trade routes.
The Trump-Xi meeting could advance US economic interests, fulfilling Trump’s pledge to prioritize America and rectify past trade imbalances caused by weak leadership or unfair deals. The talks may also reduce trade war tensions and provide China with incentives to avoid conflict over Taiwan, potentially averting a military crisis.
