"But it must include real, structural change to end unfair trade practices, reduce our chronic trade deficit, and protect American jobs", Trump said in his State of the Union address delivered Tuesday Washington D.C. time. At the G20 summit in Argentina in December, Trump and Xi agreed to a 90-day truce in their tariff war to allow room for a new trade agreement.
A United Nations expert has warned that a U.S. plan to raise tariffs on Chinese goods next month would have "massive" implications for the global economy unless it is resolved.
The UN predicted the European Union stood to gain $70 billion as both China and the USA seek new outlets for their exports, and up to $90 billion in additional trade due to larger value chain changes in East Asia.
A US flag is tweaked ahead of a news conference between US Secretary of State John Kerry and Chinese Foreign Minister Wang Yi at the Ministry of Foreign Affairs in Beijing January 27, 2016. He last week vowed to negotiate a "comprehensive" trade deal that would include meaningful changes in economic policy and bring an end to the theft of USA intellectual property. U.S. firms would capture just around 6% of the $250bn of Chinese exports subject to United States tariffs, while Chinese firms would retain about 12%.
As the March 1 deadline looms for Beijing and Washington to reach a trade accord to stave off further tariffs in their months-long trade war, the U.S. will send its chief trade negotiator Robert Lighthizer and Treasury Secretary Steven Mnuchin to Beijing early next week.
However, the tariffs are often passed on in whole or in part to consumers, who pay higher prices as a result.
Instead, European, Japanese, Canadian and Mexican firms are likely to reap the greatest benefits, the research found. They also may be delivering on at least one goal of the administration's trade wars: reducing imports of targeted products from China.
"I don't think it would be productive to speculate on the outcome because we have a lot of work left to do".
But the gains for some countries could be undermined by other aspects of the trade war, which has contributed to an economic slowdown in China and triggered volatility in global markets.
US President Donald Trump has placed tariffs on almost half of all goods that are imported from China as he tries to force Beijing to change what he claims are unfair trade practices, including the forced sharing of technology.
Mr Trump's comments come as Beijing rejected a USA report on China's compliance with the World Trade Organisation.
The Ministry said China firmly opposes unilateralism and protectionism and is committed to the development of economic globalisation. Unless the U.S. and China agree to drop their tariff dispute by March 1, duty on each country's products will rise to 25 per cent, up from the current 10 per cent level, the United Nations said.