TwitterFacebookPinterestGoogle+

World waits to see if Trump-Xi dinner brings trade peace

BUENOS AIRES, Argentina (AP) — When President Donald Trump sits down for dinner Saturday with Chinese leader Xi Jinping, their table talk will undoubtedly have a global impact. What they agree on — or don’t — will determine whether stock markets rise or fall, whether the world economy gets some relief from destabilizing trade tensions, and cast judgment on the wisdom of the American leader’s hard-nosed trade tactics.

Trump and Xi will be seeking a way out of a trade war between the world’s two biggest economies, while also saving face for their domestic audiences at home. Trump Friday expressed optimism about a deal. “There’s some good signs,” he said. “We’ll see what happens.”

The Trump-Xi meeting is set to be the marquee event of Trump’s whirlwind two-day trip to Argentina for the Group of 20 Summit after the president cancelled a sit-down with Russian President Vladimir Putin over mounting tensions between Russia and Ukraine.

Trade analysts and administration officials acknowledge it won’t be easy. The United States and China are locked in a dispute over their trade imbalance and Beijing’s push to challenge American technological dominance. Washington accuses China of deploying predatory tactics in its tech drive, including stealing trade secrets and forcing American firms to hand over technology in exchange for access to the Chinese market.

Trump has imposed import taxes on $250 billion in Chinese products. If he can’t get a deal with Xi, he’s poised to more than double most of those tariffs Jan. 1. And he’s threatened to expand tariffs to virtually everything China ships to the United States.

China, which has already slapped tariffs on $110 billion in U.S. goods, is likely to retaliate, ramping up a conflict that is already rattling financial markets and causing forecasters to downgrade the outlook for global economic growth.

U.S. officials insist that the American economy is more resilient to the tumult than China’s, but they remain anxious of the economic effects of a prolonged showdown — as Trump has made economic growth the benchmark by which he wants his administration judges.

It’s unlikely the two countries will reach a full-blown resolution in Buenos Aires; the issues that divide them are just too difficult. What’s more likely, analysts say, is that they reach a truce, buying time for more substantive talks. Whether such a cease-fire would be enough to get Trump to delay higher or expanded tariffs is unclear.

Growing concerns that the trade war will increasingly hurt corporate earnings and the U.S. economy are a key reason why U.S. stock prices have been sinking this fall.

Joining other forecasters, economists at the Organization for Economic Co-operation and Development last week downgraded their outlook for global economic growth next year to 3.5 percent from a previous 3.7 percent. In doing so, they cited the trade conflict as well as political uncertainty.

Trump met Friday with Japanese Prime Minister Shinzo Abe and Indian Prime Minister Narendra Modi in a rare trilateral meeting. The symbolism ahead of the Xi meeting was clear: the Trump administration has looked to find common cause with both nations in countering China’s regional hegemony.

Earlier that day, Trump signed a revamped three-way trade deal with Canada and Mexico, fulfilling a longstanding pledge, though the agreement could face headwinds in Congress. He also held a series of formal and informal meetings and will continue those sit-downs Saturday, including with German Chancellor Angela Merkel.

Last spring, it looked like Beijing and Washington might have found a peaceful resolution.

In May, Treasury Secretary Steven Mnuchin declared the trade war “on hold” after Beijing agreed to increase its purchases of U.S. soybeans and liquefied natural gas — a move that could have put a dent in China’s massive trade surplus with the United States.

But the cease-fire didn’t last. Facing criticism that he’d gone soft on China, Trump backed away from Mnuchin’s deal and decided to proceed with tariffs.

Now a lasting peace is likely to require the Chinese to scale back their ambitions to become a technological power. Or at least curb the strong-arm tactics.

Kudlow said the administration has been “extremely disappointed” by China’s engagement in trade talks but the meeting between Trump and Xi on the sidelines of the Group of 20 summit could be a game-changer.

“Perhaps we can break through in Buenos Aires or not,” he said.

Kudlow added that if the U.S. doesn’t get “satisfactory” responses to its trade positions more tariffs will be imposed. He said Trump is “not going away.”

“I hope they understand that,” he said.

Republican Sen. Pat Toomey of Pennsylvania is skeptical: “This has been their business model for a while,” Toomey told reporters this week. “They’re not going to abandon it lightly.”

Leave a Reply

Your email address will not be published. Required fields are marked *

VIDEO NEWS

National Politics

Putin: NKorea’s Kim ready to denuclearize _ with conditions

VLADIVOSTOK, Russia (AP) — Russian President Vladimir Putin said North Korean leader Kim Jong Un…

Ex-Vice President Biden launches 2020 presidential campaign

WASHINGTON (AP) — Former Vice President Joe Biden formally joined the crowded Democratic presidential contest…

Putin, Kim to meet in Russia’s Far East on Thursday

MOSCOW (AP) — Russian President Vladimir Putin will meet with North Korean leader Kim Jong…

As Sri Lanka mourns, Islamic State claims Easter bombings

COLOMBO, Sri Lanka (AP) — As the death toll from the Easter bombings in Sri…

STATE & LOCAL POLITICS

Governor Ron DeSantis Signs Death Warrant For Tampa Serial Killer Robert "Bobby" Joe Long

TALLAHASSEE, Fla. (FNN NEWS) - Florida's 46th Governor Ron DeSantis has signed a death warrant…

Florida Supreme Court Affirms Governor’s Authority to Suspend Scott Israel

TALLAHASSEE, Fla. - Today, the Florida Supreme Court issued an opinion affirming Governor Ron DeSantis’…

Governor Ron DeSantis to Speak at Press Conference in Key Biscayne with the Miami Super Bowl Host Committee Monday

MIAMI, Fla. (FNN NEWS) - Governor Ron DeSantis will hold a press conference with the Miami…

[OPINION]: Central Florida’s Regressive Prosecutor

In 2016, Central Florida elected Aramis Ayala as Florida’s first African-American State Attorney. Given her…

FNN SPORTS

  • Florida's 46th Governor Ron DeSantis, First Lady Casey DeSantis, and former NBA star Tracy McGray were spotted courtside at Orlando Magic playoff against Toronto Raptors at Amway Center Friday, April 19, 2019. Photo by J Willie David, III / Florida National News
    ORLANDO (FNN SPORTS) - Governor Ron DeSantis, Former NBA Star Tracy McGrady Sit Courtside for Game 3 of Orlando Magic Playoffs (Photo: Willie David/Florida National News)

MORE SPORTS NEWS

Attorneys for Patriots owner set to challenge sex video

WEST PALM BEACH, Fla. (AP) — New England Patriots owner Robert Kraft’s high-profile attorneys normally…

Orlando City Earns Late 1-0 Victory Over Vancouver

ORLANDO, Fla. (FNN SPORTS) - Source: Orlando City SC // Orlando City SC (3-3-2, 11…

Governor Ron DeSantis, Former NBA Star Tracy McGrady Sit Courtside for Game 3 of Orlando Magic Playoffs

ORLANDO, Fla. (FNN SPORTS) - Florida's 46th Governor Ron DeSantis (R),  First Lady Casey DeSantis…

Jaguars Unveil New Logo To Celebrate Team's Historic 25th Season

JACKSONVILLE, Fla. (FNN SPORTS) – Today the Jacksonville Jaguars kicked off a yearlong celebration of the…

MATCH RECAP: Pride Shutout by North Carolina Courage

ORLANDO, Fla. - Orlando Pride (0-2-0, 0 points) fell to the defending National Women’s Soccer League…

Tampa Bay Buccaneers announce 2019 regular season schedule

TAMPA, Fla. - The Tampa Bay Buccaneers’ 2019 regular season schedule, released today by the…

BUSINESS NEWS

  • FILE In this May 31, 2018, file photo a customer enters the Apple store in New York. Apple on Monday, March 18, 2019, unveiled a new iPad that's thinner and slightly larger than its current entry-level tablet. (AP Photo/Mark Lennihan, File)
    NEW YORK (AP) - Apple refreshes iPad lineup, with larger entry-level model. (AP Photo/Mark Lennihan, File)

MORE BUSINESS NEWS

Shark Tank Star Daymond John, DWTS's Lindsay Arnold, Joey Fatone to Host Runway to Hope 2019 Gala

ORLANDO, Fla. (FNN NEWS) - Runway to Hope co-founder Attorney Mark NeJame announced on Facebook Wednesday…

Bank of America Raising Hourly Minimum Wage to $20

NEW YORK (AP) — Bank of America plans to raise its starting pay to $20…

Pinterest sets sites on $1.5B in first public share offering

NEW YORK (AP) — Pinterest, among a gaggle of tech companies planning to go public…

Gone in 6 minutes: an Ethiopian Airlines jet’s final journey

From nearly the moment they roared down the runway and took off in their new…

Linda McMahon to exit role at Small Business Administration

PALM BEACH, Fla. (AP) — The head of the Small Business Administration, Linda McMahon, is…

Facebook charged with housing discrimination by HUD

NEW YORK (AP) — The federal government charged Facebook with high-tech housing discrimination Thursday for allegedly…

ENTERTAINMENT NEWS

  • This undated photo provided by the Houston Police Department shows Timothy Williams. The actor and spokesman for the discount hotel website Trivago.com has been arrested in Texas on a misdemeanor driving while intoxicated charge. Court records show 52-year-old Williams was arrested Wednesday, April 10, 2019, in Houston and freed on $100 bond. (Houston Police Department via AP)
    TEXAS (AP) - Trivago Hotel Website Actor Arrested in Texas on DWI Charge (Photo: Houston Police Department via AP)

MORE ENTERTAINMENT NEWS

Brothers sue Jussie Smollett’s lawyers, claiming defamation

CHICAGO (AP) — Two brothers who say they helped Jussie Smollett stage a racist and…

Funk Fest Orlando Brings Erykah Badu, Ginuwine, Bobby Brown and More This Weekend

ORLANDO, Fla. (FNN NEWS) - Funk Fest, the ultimate Old School R&B/Hip Hop outdoor music…

Florida Film Festival announced the 2019 Grand Jury and Audience Award Winners

ORLANDO, Fla. (FNN NEWS) - After 10 days and over 180 films, the 2019 Florida Film…

Shark Tank Star Daymond John, DWTS's Lindsay Arnold, Joey Fatone to Host Runway to Hope 2019 Gala

ORLANDO, Fla. (FNN NEWS) - Runway to Hope co-founder Attorney Mark NeJame announced on Facebook Wednesday…

Aretha Franklin makes history with posthumous Pulitzer win

NEW YORK (AP) — Aretha Franklin is still getting R-E-S-P-E-C-T after death: The Queen of…

Trivago Hotel Website Actor Arrested in Texas on DWI Charge

HOUSTON (AP) - The actor who has become something of a sex symbol as the…

LIFESTYLE, TRAVEL & TOURISM

  • LAKE BUENA VISTA, Fla. - 26th Epcot International Flower & Garden Festival Blooms for 90 Days at Walt Disney World Resort (Photo courtesy Walt Disney World)

MORE LIFESTYLE NEWS

Shark Tank Star Daymond John, DWTS's Lindsay Arnold, Joey Fatone to Host Runway to Hope 2019 Gala

ORLANDO, Fla. (FNN NEWS) - Runway to Hope co-founder Attorney Mark NeJame announced on Facebook Wednesday…

Trivago Hotel Website Actor Arrested in Texas on DWI Charge

HOUSTON (AP) - The actor who has become something of a sex symbol as the…

"Unplanned" Movie Comes to Orlando, Inspired by Conservative Activist Korrie Lupino Stevenson

ORLANDO, Fla. (FNN NEWS) - On Wednesday, March 27th, Unplanned the movie will be viewed…

Garden Rocks Concert Series Expands to Every Day of the Epcot International Flower & Garden Festival, March 6-June 3

LAKE BUENA VISTA, Fla. – Garden Rocks Concert Series is back – every single day…

SPECIAL REPORT: Non-Compliance with State Law Plagues Orange County Soil & Water Board

ORLANDO, Fla. (FNN NEWS) - Florida currently has 58 Soil & Water Conservation Districts which were…

Chairman Daisy Morales Announces New Website for Orange Soil and Water Conservation District

ORLANDO, Fla. (FNN NEWS) – After four years of ongoing board meetings and delays to…