US President Trump: I invite Xi to White House on September 24

Sagar Dua FXStreet

United States (US) President Donald Trump said at a state banquet in Beijing that he had extremely positive and constructive discussions with Chinese leader Xi Jinping, while calling him a “friend”.

Additional remarks

US-China relationship is one of the most consequential in world history.

This is a historic visit.

Had extremely positive and constructive discussions with Xi.

Meanwhile, China's Xi has also praised US President Trump at the state banquet and has stated that both the US and China should become partners, not rivals.

Additional comments

Rejuvenation of China and 'Make America Great Again' can go hand in hand.

I had in-depth exchange of views with Trump today.

We both believe China-US ties are the most important bilateral ties in the world.

Mutual respect is key to stable China-US ties.

We should jointly promote great ship of China-US relations along the right path.

Market reaction

No responsive action was seen in the US Dollar (USD) and S&P 500 futures after comments from US President Trump and Chinese leader Xi, following their bilateral meeting.

US-China Trade War FAQs

What does “trade war” mean?

Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living.

What is the US-China trade war?

An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies.

Trade war 2.0

The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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