Talks between Trump and Xi Jinping, agreement on tariffs may be reached between China and America

US President Donald Trump and Chinese President Xi Jinping had a phone conversation on Thursday. This conversation took place at a time when the talks between the two countries regarding trade tariffs have been stuck for a long time and its effect is clearly visible on global trade. China’s Foreign Ministry confirmed this phone conversation and said that this call was made by US President Trump. However, there was no immediate comment from the White House on this.

Stallion in trade talks

In fact, an agreement was reached between the US and China on May 12 in which both the countries agreed to reduce trade tariffs so that there is scope for further talks. But since then the talks have come to a standstill. The big reason behind this is the ongoing economic competition between the two countries. Trump wrote on social media on Wednesday, ‘I like Chinese President Xi and I will always like him, but he is very tough and it is very difficult to compromise with him!’ The US President also said that Jinping ‘humbly’ invited him and First Lady Melania Trump to visit China. In response, Trump also invited Jinping to visit the US.

America’s allegations and China’s displeasure

The US alleges that China is not cooperating in the export of important minerals. At the same time, China says that the US is banning the sale of its high-tech chips and is also banning student visas, which is affecting their colleges and PhD students.

Earlier Trump had accused Jinping

Let us tell you that, earlier US President Donald Trump had accused China of completely violating the agreement regarding tariffs. On May 30, in a post on the social media platform Truth Social, Trump made serious allegations against Chinese President Xi Jinping and said that – Two weeks ago when the situation in China started getting worse, I saved them from that situation through a deal, but when everything became normal there, they are completely violating the agreement.

Changes in tariffs of America and China

To give a chance to the talks, Trump has reduced the 145% duty imposed on goods imported from China to 30%, which will remain in force for the next 90 days. In response, China has also reduced the tax on goods coming from America from 125% to 10%. However, these decisions have seen huge fluctuations in the stock markets and the stability of global trade is also under threat.

Different strategies of both the countries

Even if the talks resume, the economic strategy of both the countries is completely different. Trump wants the US not to depend on China for its manufacturing (factory) needs and to promote industrialization in America again. At the same time, China wants to keep investing in advanced technologies like electric vehicles, artificial intelligence so that it can stay ahead in the future economic race.

Trade deficit and China’s economy

In 2024, the US has suffered a trade deficit of $295 billion with China. That is, America imported a lot from China, but exported very little. At the same time, China itself is struggling with a slowing economy. The real estate crisis and the long lockdown due to the Kovid-19 epidemic have weakened China’s domestic demand. This has affected China’s economic pace.

Previous talks and fentanyl issue

Trump and Xi Jinping had earlier held talks in January, which took place three days before the swearing-in day. Then, apart from trade, they also discussed the demand to stop the synthetic drug called fentanyl from entering the US. Trump wanted China to take strict action on this.

What is Trump’s displeasure?

Although Trump had expressed optimism many times that he could make a big trade deal with China, but now he seems disappointed. Recently he wrote, ‘The bad news is that China has completely violated the agreement with us. Now there is no use of being a good person!’