Signs of thawing? US-China trade war may ease as Donald Trump likely to speak to Xi Jinping ‘very soon’

US President Donald Trump and Chinese President Xi Jinping may soon talk to ease the mounting issues in the US-China trade deal. According to US Treasury Secretary Scott Bessent, a conversation between Trump and Xi Jinping might occur "very soon," suggesting this dialogue could potentially resolve the current deadlock in trade negotiations between the world’s top two economies.Trump had expressed criticism on Friday regarding Beijing's alleged breach of an agreement reached in Geneva last month, which was brokered by Bessent. The agreement aimed to temporarily reduce the substantial tariffs both nations had implemented, with a planned duration of 90 days.The Wall Street Journal's Friday report, subsequently verified by US officials, highlighted American concerns regarding China's deliberate delays in approving export licences for rare earths and other crucial components essential for automobile and semiconductor manufacturing.

However, Bessent adopted a more conciliatory tone during his appearance on CBS's "Face the Nation," expressing confidence that the existing differences between the two nations could be resolved."I'm confident that when President Trump and Party Chairman Xi have a call that this will be ironed out," Bessent said, however noting that China was "withholding some of the products that they agreed to release during our agreement."

When questioned about rare earths being amongst those products, Bessent confirmed with a "Yes.""Maybe it's a glitch in the Chinese system. Maybe it's intentional. We'll see after the president speaks with" Xi, he said.Also Read | ‘Work of fiction…’: Will Donald Trump bury US government in debt with multitrillion-dollar tax breaks? Even Elon Musk is concernedRegarding the timing of a Trump-Xi conversation, Bessent said: "I believe we will see something very soon."Following Trump's return to office, the US President imposed huge reciprocal tariffs on most US trade partners, particularly implementing higher rates on imports from China.The escalating retaliatory duties between both nations reached significant levels before May’s reduction, where the US temporarily decreased its supplementary tariffs on Chinese imports from 145 percent to 30 percent.In response, China reduced its additional tariffs from 125 percent to 10 percent.Speaking to ABC's "This Week," Commerce Secretary Howard Lutnick said: "We are taking certain actions to show them what it feels like on the other side of that equation." He noted that China was "slow-rolling the deal.""Our president understands what to do. He's going to go work it out," Lutnick said.Also Read | ‘Even if we lose…’: Donald Trump administration readying two-part strategy to impose reciprocal tariffs, says ‘we will do it another way’