Trump announces intentions to meet with Xi Jinping if successful in negotiating a trade agreement with China
The US-China trade deal, as of recent developments, sees both countries committing to uphold prior commitments made in the Geneva agreement earlier in 2025. This agreement includes China providing rare earths to the US, while the US agreed to lift certain countermeasures against China. Reciprocal tariff rates have been lowered to 10 percent, a significant reduction from the previous peak tariff rates, although effective tariffs on most goods remain above 30 percent due to existing duties[1].
In the midst of these ongoing negotiations, some high tariffs remain, such as a 50 percent tariff on semi-finished copper products imposed by the US on August 1, 2025[1]. President Donald Trump has stated that his administration would soon impose tariffs on US imports of pharmaceuticals, semiconductors, and chips, a move that could potentially escalate the trade tensions further.
Regarding a potential leaders' meeting, no confirmed date for a planned meeting between US President Donald Trump and Chinese President Xi Jinping has been announced. The latest reports suggest ongoing negotiations and tactical moves but do not provide a confirmed schedule for a bilateral summit[1][4]. Trump has mentioned that he will meet Xi Jinping before the end of the year if a deal is reached.
Interestingly, Trump stated that Xi Jinping requested a meeting, but he indicated that if no deal is made, he will not have a meeting with Xi[3]. China has an Aug 12 deadline to reach a durable tariff agreement with the US administration.
In May and June, China and the US reached preliminary deals to end escalating tariffs and a cut-off of rare earth minerals. However, no information is available about the meeting in Stockholm to resolve these economic disputes.
Treasury Secretary Scott Bessent believes the US has the "makings of a deal" with China[2]. Despite this optimistic outlook, if no deal is reached, US duties on Chinese imports could snap back to triple-digit levels, potentially causing renewed turmoil in global supply chains. This situation could amount to a bilateral trade embargo between the US and China.
[1] Source: Reuters, August 2025 [2] Source: CNBC, August 2025 [3] Source: BBC News, August 2025 [4] Source: The New York Times, August 2025
- The ongoing US-China trade negotiations, driven by politics and policy-and-legislation, are influencing the business sector, with implications for finance as rising tariffs could disrupt general-news worthy supply chains.
- Amidst the war-and-conflicts backdrop of international trade, the US and China are racing against time to reach a tariff agreement by August 12, potentially shaping the course of global economics.
- Donald Trump's recent statements on potential tariffs on pharmaceuticals, semiconductors, and chips, if implemented, could escalate the US-China trade tensions further, impacting business and finance, and becoming a significant point in the general-news landscape.
