President Donald Trump suggested Monday that he may speak directly with Chinese President Xi Jinping by the end of the week, following a breakthrough agreement between U.S. and Chinese negotiators that marks the first major easing in trade tensions since Trump reimposed tariffs in early April.
“They were very happy to be able to do something with us. And the relationship is very, very good,” Trump told reporters at the White House, adding that a call with Xi could happen “maybe at the end of the week.”
The possible conversation would come on the heels of a deal struck in Geneva over the weekend, where Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese officials. The result: a 90-day “cooling-off period” that will reduce tariffs on both sides — a major de-escalation after weeks of economic brinkmanship.
Under the deal, Trump’s previously announced 145% tariffs will temporarily drop to 30%, while China’s retaliatory tariffs fall from 125% to just 10%. Key sectors like automobiles, steel, and aluminum are exempt from the current truce, which will give both sides time to hash out more difficult “structural issues.”
Trump, who spoke before departing for the Middle East, called the negotiations in Geneva “very friendly” and said the agreement signals that “countries are now realizing they have to pay to play.”
Greer, speaking on Sunday, highlighted how quickly the two sides reached consensus. “It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought,” he said.
This comes just days after the administration secured another significant trade win — a bilateral agreement with the United Kingdom. Trump hailed that deal as the “first of many” and part of his broader strategy to leverage American market access for better trade terms.
The timing of a possible Trump-Xi call is significant. If the two leaders can build on this initial progress, it could help stabilize global markets and offer a rare moment of economic optimism after a year marked by rising inflation and supply chain woes.
Still, the president was clear that not all tariffs are going away. “It doesn’t include tariffs on cars, steel, aluminum, or those that may be imposed on pharmaceuticals,” Trump noted, signaling he still intends to hold leverage in upcoming talks.
In the meantime, the administration is framing the new truce as a win for American workers and a warning shot to other trading partners: make a deal — or face the tariff hammer.
As for Trump’s political prospects, the momentum from these trade deals could help shift attention away from earlier backlash to his across-the-board tariff hikes. Whether it translates into a polling bump remains to be seen, but the White House is banking on these agreements to deliver both economic and political dividends.
With a second high-stakes negotiation now underway — and the president’s expected call with Xi looming — the global economy is watching closely. The next 90 days could define the future of U.S.-China trade relations and determine whether this fragile peace holds.
