Trump and Xi Set for Crucial Trade Talks Amid Tariff Tensions

U.S. President Donald Trump is set to speak with Chinese President Xi Jinping this week, marking a significant diplomatic exchange as the two largest economies seek to resolve trade tensions. This will be their first known conversation since Trump took office in 2025, following earlier discussions before his inauguration.

Trump recently ordered sweeping tariffs on imports from Mexico, Canada, and China to curb the flow of illegal fentanyl, a leading cause of drug overdoses in the U.S. While he later backed down on tariffs for Mexico and Canada, the 10% duty on Chinese goods is set to take effect Tuesday. Trump warned that tariffs could rise significantly if China does not take stronger action to stop fentanyl exports.

The White House confirmed that Trump and Xi would speak "in the next couple of days." Trump called the initial tariffs an "opening salvo" and signaled a willingness to escalate measures if necessary. The U.S. claims China is the main source of precursor chemicals used by drug cartels in Mexico to produce fentanyl. However, China argues that it has made significant efforts to curb illicit drug trade.

Despite China’s long-standing opposition to tariffs, Beijing’s response has been relatively measured, signaling openness to negotiations. A source familiar with the matter suggested China may seek a deal to delay or prevent further tariffs. Meanwhile, the U.S. dollar surged to record highs against the offshore Chinese yuan.

As global markets react to rising trade tensions, the outcome of Trump and Xi’s upcoming talks could shape economic relations between the two superpowers.