China · Donald Trump · Iran · U.S. Treasury · Scott Bessent · CNBC Technology
Trump, Xi seek trade stability and agreements, but AI, tariffs and Iran loom large
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President Donald Trump and Chinese leader Xi Jinping 's aims of bolstering trade stability and clinching economic wins could be scrambled by a roiling debate over artificial intelligence, as well as shifting U.S. tariffs and an Iran war-related sanctions operation.
Key facts
- U.S. trade with China fell sharply in 2025, with total goods trade declining nearly 30% from the prior year, and the first seven months of 2026 show a continued decline, according to U.S. Census data
- The Congressional Research Service's estimate is even higher, calculating the U.S. average tariff rate on China in July at roughly 36.5%, versus Beijing's 31% rate on U.S. goods
- Last year's explosive trade war saw the two economic superpowers hike tariffs on each other's goods to dizzying heights: U.S. levies on Chinese imports hit 145% at the peak of the squabble
- Both Trump and Xi "appear to be managing for small gains and conflict avoidance," Ryan Hass, director of the Brookings Institution's John L
Summary
The two leaders are expected to seek ways to strengthen their fragile trade truce when they meet in Washington for their second face-to-face summit this year. Despite gestures of goodwill surrounding the lead-up to the summit, the two sides continue to lob accusations and launch retaliatory trade actions. Treasury Secretary Scott Bessent, 's " Squawk Box " on Monday, said the "great respect" Trump and Xi have for each other trickles down to broader U.S.-China negotiations. He then noted, "We had some deliverables that have not been completely fulfilled" by China as part of a trade agreement Trump and Xi reached in Busan, South Korea, nearly a year ago.