Trump Hints at Direct Talks With Xi as US and China Hit ‘Reset’ on Trade War

Former US President Donald Trump indicated readiness to directly deal with Chinese President Xi Jinping in search of a new trade pact, fuelling renewed speculation about a potential relaxation of US-China relations. Trump's assertion is at a sensitive time as both countries strive to navigate persistent economic rows and worldwide uncertainties. His willingness for face-to-face talks with Xi indicates a possible change in diplomatic approach, and hopes are high for fresh negotiations that may change the course of global trade in the future.

Highlights:

President Donald Trump revealed that he could communicate with Chinese President Xi Jinping before the week's end, indicating a possible new era in US-China relations following a significant breakthrough in trade talks.

At the weekend, senior US and Chinese leaders sat down in Geneva and committed to cutting tariffs dramatically for 90 days, a move that Trump called a complete reset in the relationship between the world's two biggest economies.

The deal will reduce US tariffs on Chinese products from 145% to approximately 55%, while China will also reduce its retaliatory tariffs from 125% to 10%. The two will also suspend or eliminate recent non-tariff measures and countermeasures.

Trump highlighted the better tone of talks, referring to the talks as friendly and mentioning that the relations with China are now very, very good. Trump mentioned that the US is not looking to harm Beijing, and that China wanted to sign an agreement because of pressure from within its economy.

The agreement doesn't address all areas of contention-tariffs on automobiles, steel, aluminum, and potentially pharmaceuticals are still on the table-but both sides committed to taking drastic measures to stop fentanyl from coming into the country, a priority US request.

Chinese state media and authorities hailed the result as a triumph for Xi Jinping's strong leadership, while US experts point out that the deal fails to touch on long-standing grievances such as China's trade deficit or currency manipulation.

The window of 90 days to roll back tariffs is viewed as a chance for both nations to sit down and discuss a wider, more permanent resolution, with Trump and Xi reportedly set to sign off on any significant deal in person.

Trump's readiness to negotiate directly with Xi is a demonstration of his pragmatism, seeking a grand economic agreement that would redefine the US-China relationship and enhance his legacy.

Sources: Reuters, South China Morning Post, CNN, White House, Washington Post, Hindustan Times, Bloomberg