President Trump and Chinese President Xi Jinping are set to talk by phone later this week, the White House said Monday, as the world’s largest economies accuse each other of undermining their trade truce struck in May.
Any conversation between U.S. and Chinese leaders is a major event, and plans for this call are also unfolding alongside high tensions over trade, student visas and military aggression in the Indo-Pacific.
“I can confirm the two leaders will likely talk this week,” White House press secretary Karoline Leavitt said. “As always, when there are foreign leader calls, we will provide a readout of those calls.”
Ms. Leavitt spoke hours after China accused the U.S. of violating the agreement both countries reached in Geneva to de-escalate trade tensions, the latest sign of friction between the world’s two largest economies.
The Commerce Ministry in Beijing said the American side clamped down on the export of semiconductors used in artificial intelligence and stopped the sale of chip-design software to China, while revoking Chinese student visas.
“These practices seriously violate the consensus reached by the two heads of state on January 17, seriously undermine the existing consensus of the Geneva economic and trade talks, and seriously damage China’s legitimate rights and interests,” the ministry said.
China lashed out days after Mr. Trump accused Beijing of violating the agreement that Treasury Secretary Scott Bessent and U.S. negotiators struck with Chinese counterparts in Switzerland to reduce sky-high tariffs on either side.
The levies were reduced from 100%-plus to 30% on Chinese imports and 10% on U.S. goods heading into China.
The U.S. is upset that China is keeping tight controls on the export of rare earths minerals that are needed for military technology and other purposes.
“So much for being Mr. NICE GUY!” Mr. Trump posted Friday on Truth Social.
Stocks dropped Monday to kick off June trading, given the uncertainty around trade.
The Dow Jones Industrial Average slid nearly 200 points by mid-afternoon and the S&P 500 was down slightly, though the Nasdaq traded in positive territory.
Tensions are mounting between the U.S. and European Union, too, given Mr. Trump’s decision to double tariffs on steel and aluminum imports from 25% to 50%.
The EU said the move undermined trade negotiations and that it would impose countermeasures unless the two sides reached an agreement.
European Trade Commissioner Maros Sefcovic is expected to push for tariff reductions when he meets with U.S. Trade Representative Jamieson Greer in Paris this week.
Absent an agreement, the EU has threatened to retaliate by July 14 with a list of tariffs on U.S. goods that had been previously announced but suspended to allow time for negotiations.
Ms. Leavitt, speaking to White House reporters, said Mr. Trump’s prior threats to raise overall tariffs on the EU brought the bloc to the negotiating table.
Tensions between the U.S. and China extend beyond trade. The U.S. is ousting Chinese students from American universities, and Defense Secretary Pete Hegseth said China posed an “imminent” threat in the Indo-Pacific region, specifically toward Taiwan, which Beijing considers to be a breakaway province.
China reacted angrily, saying Mr. Hegseth espoused a “cold war mentality,” and continued its complaints on Monday.
“The United States has unilaterally provoked new economic and trade frictions, exacerbating the uncertainty and instability of bilateral economic and trade relations,” the Chinese Commerce Ministry said. “Instead of reflecting on itself, it has turned the tables and unreasonably accused China of violating the consensus, which is seriously contrary to the facts. China firmly rejects unreasonable accusations.”
Top Trump aides have downplayed some of the tensions, pointing out that both sides are still talking to each other.
Kevin Hasssett, director of the National Economic Council, teased a Trump-Xi conversation over the weekend, prior to Ms. Leavitt’s confirmation.
“President Trump, we expect, is going to have a wonderful conversation about the trade negotiations this week with President Xi, that’s our expectation,” Mr. Hassett said on ABC News’ “This Week.”
