Trade War Truce Between the U.S. and China?

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US and China square off in trade dispute ( MGN )

Could there be a truce of sorts in the trade war with China? The "South China Morning Post" reports the two sides have agreed to a tentative truce in order to resume talks at the G20 Summit this weekend. 

President Trump and Chinese President Xi Jinping are in Japan right now for the conference and are scheduled to meet on Saturday.  The report also says the agreement would stop the next round of tariffs on an additional $300 billion worth of Chinese imports, but White House economic advisor Larry Kudlow told Fox News there are no preconditions set for the talks and the White House may still move ahead with the additional tariffs.

President Trump said a trade deal was possible this weekend, but he's also prepare to impose more tariffs. The President, telling Fox Business Network, "We have lost billions and billions and trillions of dollars with China, right?  We're now taking in billions and billions of dollars and I've only done phase one.  Phase one is 25% of $250 billion.  I haven't done phase two yet.  Now, phase two doesn't have to be 25%.  It could be 10%".

Chinese officials are not commenting on the possible tariff truce.  A spokesman said threats by President Trump to impose more tariffs on Chinese exports "won't work" because the Chinese "don't believe in hearsay and are not afraid of pressure".

Treasury Secretary Steven Mnuchin told CNBC the trade deal with China was 90% completed before negotiations broke down in May. Mnuchin and U.S. Trade Representative Robert Lighthizer headed to Osaka, Japan earlier this week to help pave the way for President Trump and President Xi to talk on Saturday.

Mnuchin also told CNBC there is a path to complete the trade deal, adding "I think this is going to be a very important G20".