The recent phone call between Donald Trump and Xi Jinping marks a significant event amid escalating trade disputes between the US and China. This article reviews the key points of their discussion.
Context of the Talks
Trump's call occurred following weeks of tension in trade relations between the US and China. It was only their second conversation this year, with the first taking place on January 17. During this time, Washington accused Beijing of failing to meet trade commitments.
Key Discussion Topics
Trump raised issues regarding delays in exporting key minerals from China, part of an agreement reached during talks in Geneva. He also addressed semiconductors, on which his administration has imposed new export restrictions, citing national security concerns.
Economic Impact
Immediately following the call, US stock futures rose, while the US trade deficit dropped to $61.6 billion in May, the lowest since September 2023. Exports rose by $8.3 billion, while imports fell by $68.4 billion.
Trump's call to Xi Jinping highlights the importance of ongoing trade discussions between the US and China. Despite existing disagreements, the economic repercussions of these negotiations are already reflected in the markets.
