US President Donald Trump and his Chinese counterpart Xi Jinping say they have agreed to push forward trade talks and ease tension between their two nations after a summit Monday in a gilded opulent hotel in Trump’s southern California resort property.
However, new tensions are showing up between Trump and the European Union as European Commission President Jean-Claude Juncker said he told Trump that he did not intend to bargain over the rule of law in Europe, similar to his moves to protect a system of international trade.
Here is what you need to know.
Will there be another summit?
Trump praised his renewed relationship with Xi at the meeting for working out a deal that “we will hopefully never have to test.”
In case you missed it, Trump said that there was “a very good chance” the United States and China could reach a trade deal, but the framework was not fully completed.
That’s a bit of a change. In March, President Trump said it was “very much possible” for a China trade deal to be reached but cautioned there were “no guarantees.”
Last week, the White House said Trump would be willing to hold a new summit in November if China did what the U.S. asked.
Last month, Trump traveled to China and held an hour-long dinner with Xi. In that meeting, the two leaders discussed a cease-fire in tensions over the trade dispute.
What did Trump say about the trade deal?
During a press conference Monday at the president’s Palm Beach resort, Trump said the two nations are committed to working out a “fair and reciprocal trade relationship” that would not harm either country’s economy.
“We want a relationship,” he said. “We’re going to work out some great deals that will benefit both countries and those deals will be highly favorable. We want a very great and prosperous relationship.”
Trump said the U.S. had a net trade deficit with China, and that the U.S. “wants a fair and reciprocal trade relationship.”
He has said it is in the interest of both countries to end the trade dispute, which has shaken markets and trading ties, especially in China.
What’s the sticking point in the negotiations?
Sidestepping the trade conflict with China, Trump said the American and Chinese leaders agree on a plan to “move forward with tougher regulations and punishment” against the narcotics trade, though details of the deal were scant.
Trade is “always going to be a factor” in the drug deal, Trump said. “But it won’t be the factors that are causing trouble.”
Trump’s optimism following the meeting comes in sharp contrast to his tone on trade with his other major economic ally, the European Union.
Last week, Trump tweeted that the Trump administration is preparing a list of sweeping changes to all tariffs on EU products, plus new duties on more than €30 billion in auto imports.
Trump also canceled his upcoming meeting with Chinese President Xi Jinping at next month’s G-7 meeting in Canada. He cited Canada’s “very unfair” tariffs on US steel and aluminum imports, which he claimed were part of a trade war he brought on himself.
How has the EU reacted?
Juncker took a direct shot at Trump in a joint news conference Monday, saying he told Trump that such actions “discourage investors,” especially in the United States.
And Trump responded by saying the EU is a “protectionist entity.”
“They could not be more different than the United States, and on trade we will be ready to deal. I don’t know if there is anything really that will happen in trade. But we hope.”