Trump says ‘getting very close’ on extending China trade truce

WASHINGTON – US President Donald Trump said he was “getting very close to a deal” with China to

extend the trade truce

that saw the two countries agree to reduce tit-for-tat tariff hikes and ease export restrictions on rare earth magnets and certain technologies.

“It’s not imperative, but I think we’re going to make a good deal,” Mr Trump said in an interview with CNBC, adding that the US was “getting along with China very well.”

Still, Mr Trump downplayed the notion that he was eager for a meeting with Chinese President Xi Jinping, saying he would only want to see his Chinese counterpart as part of an effort to conclude trade negotiations. 

“I’ll end up having a meeting before the end of the year, most likely, if we make a deal,” Mr Trump said. “If we don’t make a deal, I’m not going to have a meeting.”

“It’s a 19-hour flight – it’s a long flight, but at some point in the not too distant future, I will,” Mr Trump added.

A preliminary deal between the US and China is set to expire on Aug 12.

That initial truce eased worries of a tariff war that threatened to choke off bilateral trade between the world’s two largest economies and also gave the countries more time to discuss other unresolved issues such as duties tied to fentanyl trafficking.

Last week, US Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng met in Stockholm – the third round of trade talks between the US and Beijing in less than three months. 

While Chinese officials and the Communist Party’s official newspaper had signalled satisfaction with the Stockholm talks, the pact remained fragile.

Mr Bessent had said that any agreement to extend the arrangement would be up to Mr Trump. BLOOMBERG