Trump and China's Xi have 'very good' phone call and agree to more talks amid trade war

Donald Trump says he has had a "very good" phone call with Xi Jinping amid their ongoing trade war, during which they agreed to more tariff talks.

Trade negotiations between the United States and China stalled shortly after a 12 May agreement between the two countries to reduce their rates on levies while talks took place. The call was first reported by Chinese state media and confirmed by the Chinese foreign ministry.

According to Chinese state media, Mr Trump initiated the call with the Chinese president. In a post on his Truth Social platform, the US president said: "I just concluded a very good phone call with President Xi of China, discussing some of the intricacies of our recently made, and agreed to, trade deal." He said the call lasted around an hour and a half and "resulted in a very positive conclusion for both countries".

There "should no longer be any questions" on rare earth products, he said. "The conversation was focused almost entirely on trade.

Nothing was discussed concerning Russia/Ukraine, or Iran," Mr Trump added. He said the two nations had agreed to further tariff talks, and both leaders invited each other to visit their respective countries.

According to Chinese state media, Mr Xi "pointed out that it is especially important to correct the course of the big ship of China-US relations, which requires us to keep the rudder and set the direction, especially to remove all kinds of interference and even sabotage". Mr Xi "emphasised that the US should handle the Taiwan issue carefully" to avoid the two countries being dragged "into a dangerous situation of conflict and confrontation".

According to the readout of the call, Mr Trump "expressed great respect for President Xi Jinping and the importance of the US-China relationship". It came a day after Mr Trump declared it was difficult to reach a deal with his Chinese counterpart.

"I like President Xi of China, always have, and always will, but he is very tough, and extremely hard to make a deal with!!!," Mr Trump said in a post on Truth Social. The US president has cut his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks, while China reduced its taxes on US goods from 125% to 10%.

The trade war has produced sharp swings in global markets and threatens to damage trade between the two nations. Read more:Trump travel ban: The notable countries omittedWhat a weakening dollar means for US president Mr Trump's treasury secretary Scott Bessent had suggested only a conversation between the two leaders could resolve their differences in order for talks to begin in earnest.

Mr Trump and Mr Xi last spoke in January, three days before his inauguration, where they discussed trade, as well as Mr Trump's demand for China to do more to stop the drug fentanyl from entering the US..