It can feel strangely hopeful when two global powers edge closer to an agreement—especially after years of escalating tariffs and diplomatic friction. Recently, President Donald Trump signaled that the U.S. is “very close” to a trade pact with China, and that he would be open to meeting President Xi Jinping later this year if an official deal comes together.
Getting Closer: The State of Negotiations
Trump spoke to CNBC on August 5, 2025, expressing optimism: “We’re getting very close to a deal. We’re getting along with China very well.” He added that Xi has requested a meeting and that he’d likely attend—but only if the trade agreement is finalized first. Ongoing talks in Stockholm have made steady progress, according to U.S. Treasury Secretary Scott Bessent, who said negotiators now believe they have “the makings of a deal” ahead of an August 12 deadline to solidify a truce on tariffs.
What Is Already on the Table
Earlier in June 2025, Trump declared that a framework trade deal had been reached—pending formal approval by both presidents. The agreement outlines that China would supply rare earth minerals and full magnets upfront, while the U.S. would allow Chinese students to continue attending American universities. Tariffs would be adjusted to about 55% from the U.S. side and 10% from China, blending new and existing duties.
Mixed Signals and Caution from Inside
Despite Trump’s announcement of a “done” deal, former Commerce Secretary Wilbur Ross warned that the agreement remains modest in scope. Key issues such as intellectual property protections and enforcement measures are still unresolved, and he stressed that final approval from President Xi will be critical. Negotiators continue to deliberate issues such as rare earth access, semiconductor exports, and China’s role in global supply chains.
Why It Matters: Ripples Beyond Trade
The stakes extend far beyond economic balance sheets. A successful deal could help stabilize strained global supply lines, especially given tariffs that have pushed U.S. duties to historic highs—nearly 18.3% on average, chipping away at global commerce and contributing to rising inflation. Trump’s remarks on potential tariffs for pharmaceuticals and semiconductors suggest broader pressure tactics should talks falter.
A Summit on the Horizon?
Trump also floated the possibility of a “signing summit” with Xi—potentially reminiscent of past gatherings held at marquee venues. But he clarified the meeting only makes sense if a robust trade deal is in place. Without a deal, he insists, no summit will occur.
Disclaimer:
This article is based on verified reporting as of August 5, 2025. While the trade framework has been announced, negotiations are ongoing, and final approval by both U.S. and Chinese leadership remains pending. Future developments—whether agreements, summit plans, or policy shifts—may affect the situation. The article aims to provide human-centered clarity, not official commentary.
