Both leaders, Donald Trump and Xi Jinping, are heading to the summit in Buenos Aires, Argentina, this week with the trade row between two of the world’s largest economies expected to peak when they meet, according to Beijing’s ambassador to Washington Cui Tiankai. Mr Tiankai warned the US President’s headstrong team that “dire consequences” will take place if they stand in the way of the Chinese premier. Washington is however open to reaching a deal with Beijing, with White House economic adviser Larry Kudlow saying the US President is expecting this to take place over a dinner on Saturday. But at that same dinner he has warned Mr Trump will hike tariffs on US exports should he not get the deal he wants.
Mr Kudlow said Mr Trump told his advisers that “in his view, there is a good possibility that a deal can be made, and that he is open to that”.
The White House economic adviser did not comment on whether China had made offers of concessions, further feeling suspicions of a trade stand-off between the pair.
He added the high-stakes dinner would be a prime opportunity for the two leaders to “turn the page” and put an end to the dispute on intellectual property, technology transfer, ownership of American companies in China, high tariffs and non-tariff barriers on commodities, and commercial hacking which will all be debated as “conditions to be met”.
As well as talks with China, Mr Trump has arranged a personal meeting with Russian President Vladimir Putin and is expected to take part in a signing ceremony for the trade agreement with Mexico and Canada that replaces the North American Free Trade Agreement.
Melania Trump will escort her husband to the summit.
The world’s two biggest economies have been slapping tariffs on each other goods since the summer in a tit for tat row over trade.
Mr Trump has been demanding major changes from Beijing on market access and intellectual property protections for US companies.
The World Trade Organisation has revealed tariff measures imposed by G20 countries have reached record highs and now cover $481 billion worth of global trade.
If there is no progress, Mr Trump is expected to raise tariffs on $200billion of imports from 10 percent to 25 percent.