World Business Report Trump hopes to hold a phone call with China’s Xi to discuss tariffs
Jun 2, 2025
US President Trump is poised to discuss tariffs with China's Xi Jinping, but Beijing remains quiet on the call. Meanwhile, Canada's Prime Minister is tackling interprovincial trade barriers to enhance domestic commerce. Paraguay aims to emerge as a tech and innovation hub, capitalizing on its youth and renewable resources. The conversations reveal a complex web of international trade dynamics, as nations navigate economic uncertainty while striving for growth and collaboration.
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China’s Firm Stance on Trade
- Xi Jinping now controls key supply chains and is not willing to negotiate with the US or any country.
- He may take calls to gauge leverage but not to compromise on trade issues.
China's Supply Chain Leverage
- China dominates the global supply of rare earths and magnets crucial for defense and industry.
- Without Chinese exports, many countries cannot produce critical defense and automotive equipment.
US Industry Accepts Tariffs Trend
- Many US industries accept tariff increases as part of decoupling from China.
- Threatening sanctions could be a strategic leverage to make China back down on export controls.