Trump and Xi Revive Trade Talks, Pledge Visits Amid Breakthrough on Rare Earth Dispute
by Worthy News Washington D.C. Bureau Staff
(Worthy News) – President Donald Trump announced a renewed round of U.S.-China trade talks following what he called a “very positive” phone call with Chinese President Xi Jinping, the first direct conversation between the leaders since the trade war erupted.
The 90-minute call focused almost entirely on trade issues and paved the way for high-level negotiations between the world’s two largest economies. Both leaders accepted reciprocal invitations for state visits, marking a diplomatic thaw after years of tariff battles and mounting geopolitical strain.
“Our respective teams will be meeting shortly at a location to be determined,” Trump posted on Truth Social. “There should no longer be any questions respecting the complexity of Rare Earth products.”
Representing the U.S. in upcoming talks will be Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and U.S. Trade Representative Jamieson Greer.
At the heart of the renewed negotiations is the thorny issue of rare earth minerals–critical for defense, technology, and clean energy industries. China dominates the global supply chain, producing 61% of the world’s rare earths and controlling over 90% of their refining, according to the International Energy Agency. Beijing’s recent export controls on key minerals like neodymium, yttrium, and europium escalated tensions, prompting urgent diplomacy.
“We were straightening out some of the points having to do mostly with rare-earth magnets and some other things,” Trump told reporters in the Oval Office. “We have a deal with China, and we’re going to just make sure that everybody understands what the deal is.”
The agreement, described as a framework or “deal in principle,” includes tariff reductions and commitments from China to open its markets, reduce state subsidies, and stem the flow of fentanyl into the U.S. Trump called the deal a “total reset” of trade relations, with both sides eager to avoid further economic damage after tit-for-tat tariffs soared past 100% last year.
Though specifics remain to be finalized, tariffs have already been scaled back — U.S. levies on Chinese goods dropped to 30%, while Beijing’s duties on U.S. exports fell to 10%. Both sides have pledged to hold the line during the final negotiations.
The Trump-Xi call comes as U.S. trade officials simultaneously advance talks with the European Union. Trump met with German Chancellor Friedrich Merz on Thursday to discuss transatlantic trade and tariffs, which remain a sticking point due to U.S. increases on foreign steel and aluminum.
Back on the China front, additional friction remains. The Chinese government recently criticized the U.S. for issuing warnings about Huawei’s AI chips and for revoking student visas. Trump, while reiterating support for foreign students, emphasized increased scrutiny.
“Chinese students are coming. No problem, no problem,” Trump said. “It’s our honor to have them… but we want them to be checked.”
Commerce Secretary Lutnick echoed broader concerns, warning Congress that China has used U.S. academic and industrial systems to replicate innovation. “The Chinese Communist Party seeks to become the dominant culture of the world,” Lutnick said. “They copy our innovation.”
Despite the longstanding complaints of unfair trade practices, intellectual property theft, and market manipulation, the Trump administration believes the new agreement marks a significant course correction.
“Everything you can switch on or off likely runs on rare earths,” said Thomas Kruemmer, Director of Ginger International Trade and Investment. “The importance of this deal can’t be overstated.”
As both nations prepare for their next round of talks, the message from the Trump administration is clear: negotiations are back on track, and both leaders are betting that personal diplomacy can deliver the breakthrough needed to stabilize global trade.
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