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President Donald Trump planned to hold a phone conversation with Chinese President Xi Jinping sometime this week according to his spokesperson as the United States and China sought a trade agreement to prevent further economic conflict.

Trump issued a Saturday memorandum that imposed large-scale trade taxes on Mexico China and Canada while requiring these nations to block illegal fentanyl from reaching the U.S. drug market.

On Monday Trump removed plans for high Mexico and Canada tariffs but China-imposed US tariffs started during this period.

Trump and Xi will hold their first known official conversation since Trump became president on January 20th during the scheduled call. They previously spoke before Trump's inauguration.

The White House confirmed through press secretary Karoline Leavitt that the latest phone call between Trump and the Mexican president would take place within the following two days.

 

The Republican commander-in-chief told the world on Monday that his administration would drive China tariffs higher. Starting on Tuesday the American President set a 10% tariff against everything China exports to the United States that he announced on Saturday.

The implemented tariffs amounted to less than what Trump had originally pledged during his campaign at 60% tariffs on Chinese products. The president characterized his first move as a "beginning offensive" on the same day.

The U.S. government classifies China as the primary source which drug cartels in Mexico use to manufacture their fentanyl supply from precursor chemicals. China claims to have made essential progress in fighting chemical precursors while introducing plans to restrict illegal drug operations.

Trump stated that China might stop transmitting fentanyl to the United States but if they fail to do so the increased tariffs will become much heavier. He declared that China will be handled.

China opposed tariffs as counterproductive policy but its response to new trade tariffs was restrained while the country displayed willingness to engage in conversations.

According to a person familiar with the matters the Chinese government showed signs it would pursue negotiations with Trump for delaying or preventing any upcoming tariffs.

The U.S. dollar continued to maintain its peak position against the offshore-traded Chinese yuan while keeping close to that maximum level on Monday.