ISLAMABAD: US President Donald Trump and Chinese President Xi Jinping are expected to hold a phone conversation later this week, as tensions rise again between the two largest economies over trade issues.
The White House announced on Monday that the long-anticipated contact between the two leaders could happen soon, following recent accusations from Washington that China is backtracking on key trade agreements.
Tariff Disputes Reignite Global Market Concerns
White House Press Secretary Karoline Leavitt stated that the leaders “will likely talk this week,” responding to speculation on when a direct exchange would take place.
Although Trump has claimed for months that a call with Xi was forthcoming, there has been no officially confirmed contact since Trump returned to office over five months ago.
Trump escalated the situation last week, accusing China of breaching a temporary deal that saw both countries ease back on harsh import tariffs. As a result, global stock markets experienced a downturn, reflecting investor concerns over another trade standoff.
In early April, Trump introduced new tariffs affecting multiple nations, with China bearing the brunt of the measures. Beijing and Washington had agreed last month to pause escalating tariffs for 90 days after negotiations in Geneva.
However, top US officials, including Commerce Secretary Howard Lutnick, now say that China is not honoring its commitments.
China Responds as Trade Battle Intensifies
China has denied the US claims, labeling them as “bogus” and criticizing Washington for implementing “discriminatory restrictions.” The trade dispute between the two countries appears to be entering a new and volatile phase, with Trump also targeting other economic blocs.
He announced plans to double tariffs on steel and aluminum imports from the European Union and others, effective Wednesday.
This potential Trump-Xi dialogue could be pivotal in defusing the trade row or may further inflame global economic uncertainty depending on the outcome.
