A long-anticipated call between President Donald Trump and Chinese President Xi Jinping could happen this week, as both countries face deepening hostilities over trade, technology, and diplomatic posturing.

A senior White House official told CNBC on Monday that the two leaders could speak “very soon,” although not immediately. The conversation, which follows the fragile agreement reached in Geneva in mid-May, comes as both countries ramp up accusations of betrayal and backtracking on the terms of their three-month tariff truce.

The mood between the two sides has soured rapidly. China on Monday forcefully rejected U.S. claims that it had violated the trade agreement. “China firmly rejects these unreasonable accusations,” the country’s Commerce Ministry said in a statement. It listed export controls on artificial intelligence chips, curbs on the sale of chip design software, and even the revocation of student visas for Chinese nationals as evidence of Washington’s antagonism.

“We urge the U.S. to meet China halfway, immediately correct its wrongful actions, and jointly uphold the consensus from the Geneva trade talks,” the ministry added.

Trade Deal on the Brink

In April, Trump stunned markets when he raised tariffs on Chinese goods to 145%, a sweeping move that effectively erased months of negotiation. Though both sides agreed weeks later to roll back most of those tariffs temporarily, the detente has not held.

Instead, accusations of sabotage are flying. Washington says Beijing is deliberately delaying exports of rare earth minerals and critical tech components. China, in turn, accuses the U.S. of engaging in economic containment, including its warning to allies against using Chinese-made chips and tightening export restrictions on advanced semiconductors.

Trump, visibly frustrated, wrote on Truth Social last Friday, “CHINA, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US… So much for being Mr. NICE GUY!”

High Stakes, Low Expectations

Despite the anticipation surrounding a possible Trump-Xi call, many observers doubt it will produce meaningful results. The tone from Beijing suggests hardening positions, not conciliation.

China’s posture has been one of defiance, underscored by a belief that it will not be bullied into making concessions. Even top global financiers agree. Speaking at a recent event, JPMorgan Chase CEO Jamie Dimon said the assumption that Beijing will bow to Washington is mistaken.

“China is a potential adversary. They’re doing a lot of things well. They have a lot of problems,” Dimon said. “But they’re not scared, folks. This notion that they’re going to come bow to America—I wouldn’t count on that.”

This sentiment reflects a growing consensus that Beijing is unlikely to compromise, even if Xi agrees to a direct conversation with Trump. The call, while diplomatically important, may be more symbolic than strategic.

The Impact of the Economic Fallout on Markets

The uncertainty is weighing heavily on markets. U.S. stocks opened lower Monday, rattled by fears that a new phase of economic confrontation may be on the horizon. Analysts warn that without a clear path forward, the current truce could unravel completely, unleashing another wave of trade shocks.

Before tensions escalated, trade between the U.S. and China exceeded $600 billion annually, making the partnership one of the most economically significant in the world. But with both governments now clamping down on each other’s technology sectors and intensifying national security restrictions, the relationship is rapidly deteriorating.

Xi-Trump Call May Be Final Attempt

The coming call, if it happens, could serve as a last attempt to revive the Geneva consensus. But even within Trump’s own team, there’s acknowledgment that only direct intervention from the two leaders might save the process.

Treasury Secretary Scott Bessent said last week that talks have stalled, and that progress will “require both leaders to weigh in with each other.” But even that seems a long shot.

However, it’s becoming increasingly clear that the Trump-Xi call may carry more symbolism than substance—a reflection of the widening gulf between two nations whose rivalry is no longer confined to trade, but to the future balance of global power.

Elon Musk has publicly admitted not approving of all the Trump administration’s policies, after formally ending his short but turbulent tenure as head of the Department of Government Efficiency (DOGE), the controversial agency created by President Donald Trump to slash federal spending and cut bureaucracy.

Trump offered a glowing farewell to the billionaire: “This will be his last day, but not really, because he will, always, be with us, helping all the way,” Trump posted Thursday on Truth Social, describing Musk as “terrific.”

But in an interview with CBS’s Sunday Morning, Musk indicated a more complex relationship with the White House.

“I’m a little stuck in a bind,” he said. “I don’t want to speak up against the administration, but I also don’t want to take responsibility for everything the administration’s doing.”

The comment marks one of Musk’s most direct acknowledgments of the tension between his personal views and the aggressive agenda pursued by Trump’s second-term government. While the Tesla CEO has long championed leaner government and has aligned himself with Trump on deregulation, his recent remarks suggest discomfort with the political fallout and policy direction unfolding in Washington.

DOGE’s Ambitious Agenda and Divisive Impact

Musk was tapped to lead DOGE shortly after Trump returned to office, promising to bring Silicon Valley efficiency to the federal government. Within weeks, DOGE moved to eliminate tens of thousands of federal jobs and freeze agency budgets, prompting outrage among lawmakers, labor unions, and civil service advocates.

Criticism trailed DOGE’s activities from the onset, with many saying the department overstepped its mandate, targeting vital services and gutting long-standing agencies with little oversight or consultation. While Musk defended the cost-cutting spree, he admitted the agency quickly became a lightning rod.

“DOGE became the whipping boy for everything,” Musk said. “So if there was some cut, real or imagined, everyone would blame DOGE.”

DOGE initially promised to save trillions of dollars in taxpayer money, but its own data—already under scrutiny—falls well short of that target. The program has also drawn criticism from budget experts who say its accounting methods are opaque and inflated.

Disillusionment with GOP Spending Plans

Though Musk entered government to reduce waste, he said his efforts are being undermined by the very administration he serves. In particular, he expressed frustration with a Republican-led spending and tax package currently moving through Congress. The plan, which adds trillions of dollars to the U.S. deficit, clashes with DOGE’s purported mission of fiscal discipline.

“I was disappointed to see the massive spending bill, frankly,” Musk said in the CBS interview. “It undermines the work that the DOGE team is doing.”

That public dissent, however, measured, highlights Musk’s unease with the political climate in Washington. It also reflects the limits of his influence within the Trump administration, where populist policies and political expediency have often taken precedence over long-term economic reform.

Despite Musk leaving, the Trump administration insists that DOGE’s agenda will continue. Russell Vought, Director of the Office of Management and Budget, said on CNN Sunday that the White House is committed to pressing forward with cuts using “executive tools” and partnerships with Congress.

“It’s a provision that has been rarely used, but it’s there,” he said. “And we intend to use all of these tools. We want Congress to pass it where it’s necessary; we also have executive tools.”

Tesla’s Brand Takes a Hit As Musk’s Political Cost

Musk’s government role has not come without consequences. Tesla, the crown jewel of his business empire, has faced mounting public backlash, especially from the progressive and climate-conscious consumers that have long formed its base. Showrooms and cars have been vandalized in recent months, a sign of growing frustration with Musk’s political alignment.

Industry analysts say Musk’s image as an innovator has taken a hit. “His association with a government department that was blamed for widespread job losses has clearly soured perceptions,” said Daniel McClellan, an analyst with TechWatch Global. “It’s no longer just about cars or rockets—it’s about ideology.”

Whether Musk will return to government in a future role remains unclear. Trump has not ruled it out, and Musk has not explicitly closed the door. But for now, the tech billionaire seems intent on creating some distance, if not from Trump personally, then from the policies and politics that have made his DOGE experiment one of the most polarizing chapters of his career.