### President Trump and President Xi to Discuss Trade Amid Tensions

Amid rising trade tensions, President Trump and Chinese President Xi Jinping are expected to have a significant conversation this week regarding the ongoing negotiations between their two countries, according to National Economic Council director Kevin Hassett.

This potential dialogue is seen as a crucial move in mending the increasingly volatile trade relationship between the world’s two largest economies. U.S. officials have pointed to high-level talks as a necessary step for making substantial progress.

Last Friday, President Trump took to Truth Social, accusing China of violating the tariff pause agreement that was established in mid-May. This raised concerns that the fragile truce could be faltering.

The mid-May tariff pause had initially resulted in a positive impact, boosting consumer confidence, CEO confidence, and the stock market. Speaking on ABC's This Week, Hassett highlighted the anticipated productive dialogue, stating, "President Trump, we expect, is going to have a wonderful conversation about the trade negotiations this week with President Xi, that's our expectation."

Complicating matters, Treasury Secretary Scott Bessent revealed on Thursday that China had been withholding exports of certain products, which were part of the May trade agreement.

Earlier this month, a summit in Switzerland facilitated a crucial deal where both nations agreed to a 90-day reduction in tariffs. The upcoming formal economic talks, announced by the Treasury Department for this week, mark the first such meeting since the sweeping U.S. tariffs on China were announced, sparking a trade war.

Bessent recently commented on the progress of the negotiations, stating that there had been "substantial progress." President Trump echoed this sentiment, describing the talks as leading to a "total reset" in the trade dynamics between the two nations. Such a reset, particularly one leading to significantly lower or eliminated tariffs, could provide much-needed relief to businesses and investors affected by the trade conflict.