Trump hails potential meeting with China's Xi to break trade logjam

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Trump told reporters as he pointed at his head during a White House news conference with Polish President Andrzej Duda. China pledged to retaliate by hiking tariffs on $60 billion worth of United States imports in June.

President Trump called tariffs a "beautiful thing" and credited his use of them with forcing Mexico to reach a deal with the USA on immigration and predicted the duties will also pressure China to give in on trade.

Trump said he expects to meet with Chinese President Xi Jinping on the sidelines of the G-20 Summit in Osaka, Japan, on June 28-29.

"To the extent that we're attempting to get China to negotiate on some of these big structural issues, like the role of state-owned enterprise, like its focus on providing industrial policy support for leading technology industries, they're not going to back down on that", Yale University economist and former Morgan Stanley Asia chairman Stephen Roach said last month.

The president then criticized Germany for not paying it's fair share in North Atlantic Treaty Organisation, and for buying its energy from Russian Federation. China has repeatedly said it won't be bullied or pressured into negotiating, and Xi could look as if he's giving Trump a win by meeting him after an explicit threat. He reiterated Beijing's stance that it does not want a trade war but is not afraid to fight one.

The comments came just before Trump flew to Iowa, a key early-voting state in presidential primary elections, where Biden was also campaigning.

But if they don't then he's still ready to put tariffs on hundreds of billions of dollars more in Chinese goods. Contrary to the positive outcome which is being propagated, critics argue that the brunt is faced by the agriculture industry of the United States which has been the victim of retaliatory tariffs from countries like China.

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Terry Branstad, the U.S. ambassador to China, was scheduled to meet with U.S. Vice President Mike Pence in Washington on Tuesday amid the ongoing negotiations.

"It's me right now that's holding up the deal", he said.
"At the end of the day, the tariffs are not going to fix our trade deficit with China".

Trump maintained that he had a "great relationship" with Xi despite the rise in trade tensions between their two countries. That heavily-qualified denial doesn't convey much confidence, though, and the fact that Xi felt compelled to defend the strength of his country's economy during an interview with Chinese and Russian media shortly before meeting with Putin only makes Xi's braggadocio seem even more contrived.

Meanwhile, Dow Jones saw a seven-day winning streak ー the longest run since May of past year ー which might break as investors respond to Trump's latest comments.

In addition to concerns about China's intellectual property laws, Trump has focused complaints about China on the country's trade surplus with the US and subsidies Beijing gives private companies.

The US-China tension has gone beyond tariffs. In the process, the U.S President has not only aimed at China but also targeted the long-term trade allies of the United States Canada, Mexico, and European partners.