Trump Indicates Meeting with Xi Possible if Trade Deal Finalized

President Donald Trump announced on August 5, 2023, that he is open to meeting with Chinese President Xi Jinping if the United States and China can finalize a trade agreement. During an interview with CNBC, Trump indicated that a meeting could occur before the end of the year, contingent on successful negotiations. “He asked for a meeting, and I’ll end up having a meeting before the end of the year most likely, if we make a deal. If we don’t make a deal, I’m not going to have a meeting,” he stated.

The prospect of a trade deal comes after recent discussions between officials from both nations, including a meeting in Stockholm aimed at resolving ongoing economic disputes. Scott Bessent, Secretary of the Treasury, mentioned last week that he believes the US has the “makings of a deal” with China. This statement reflects a growing optimism about extending the current truce in the trade conflict for an additional three months.

China faces a critical deadline of August 12, 2023, to establish a sustainable tariff agreement with the US. The current situation follows preliminary deals reached in May and June that sought to de-escalate the trade war, which has included a series of retaliatory tariffs and restrictions on rare earth minerals. Failure to reach an agreement could lead to renewed instability in global supply chains, as US tariffs could revert to significantly higher rates, potentially resembling a bilateral trade embargo.

In addition to the ongoing trade discussions, Trump revealed plans for his administration to impose tariffs on US imports of pharmaceuticals, semiconductors, and chips. This move is expected to have a substantial impact on China, further complicating the dynamics of the trade relationship.

The forthcoming negotiations and potential meeting between Trump and Xi symbolize a crucial moment in US-China relations, with significant implications for global markets and economic stability. The world will be closely watching how these discussions unfold in the coming weeks, as both nations seek a path forward amid an intricate web of economic interests.