U.S. President Donald Trump characterized his recent discussion with Chinese President Xi Jinping as amicable, expressing optimism about the potential for a trade agreement with China.

SIGNIFICANCE

The leaders of the two largest global economies engaged in a conversation addressing various topics, including TikTok, trade relations, and Taiwan, prior to Trump assuming office on Monday. Since his inauguration,

Trump has mentioned the possibility of implementing a 10% punitive tariff on Chinese imports, citing concerns over fentanyl being trafficked from China to the U.S. through Mexico and Canada. However, he has not yet enacted the tariffs he had pledged during his campaign. Additionally,

Trump has issued warnings of potential tariffs against the European Union, Mexico, and Canada.

NOTABLE STATEMENTS

“It went well. It was a positive and friendly discussion,” Trump remarked regarding his call with Xi during an interview with Fox News that aired on Thursday evening.
“I can do that,” he responded when asked about his ability to negotiate a fair trade deal with China.
While Trump expressed a preference to avoid imposing tariffs on China, he acknowledged their significance, referring to them as a “tremendous power.”
“But we have one very significant leverage over China, and that’s tariffs, which they wish to avoid. I would prefer not to resort to that, but it remains a powerful tool against China,” Trump elaborated.

CONTEXT

The United States and China are currently facing a multitude of diplomatic and economic conflicts. These include a growing technological and military competition, contentious trade issues, and concerns from Washington regarding the ownership of the popular social media application TikTok, which is owned by the Chinese company ByteDance.