Trump could seek trade truce with China at G-20 despite tough rhetoric

Qilai Shen | Bloomberg | Getty Images

President Donald Trump, left, and Xi Jinping, China’s president, shake hands during a news conference at the Great Hall of the People in Beijing, China, on Thursday, Nov. 9, 2017.

President Donald Trump could push for a compromise on trade with China at the upcoming G-20 summit in Argentina even after his recent tough talk on the matter, The New York Times reported.

The Times said, citing several U.S. officials, that Trump is increasingly anxious about the impact of a long trade war on financial markets and the economy. This could lead Trump to seek an agreement with China that would delay new tariffs on Chinese goods while the two countries work to solve their issues.

This would be a departure from Trump’s most recent comments on U.S.-China trade relations. In an interview with The Wall Street Journal, Trump said it is “highly unlikely” that the U.S. would hold off on increasing tariffs on $200 billion of Chinese goods to 25 percent. He also said the U.S. would slap charges on the remaining $267 billion worth of goods from China that are not yet subject to tariffs.

Trump and Chinese President Xi Jinping are scheduled to meet for dinner at the G-20 on Saturday. The two leaders are expected to discuss trade, among other issues.

The increasingly protectionist stance on U.S-China trade has rattled investors all year as they gauge how tougher trade conditions will impact corporate earnings as well as the global economy. Any progress or resolution on the matter would be seen as a positive by investors for the market.

Click here to read the full New York Times story.