Trump will not meet Xi before tariff truce deadline

US President Donald Trump said he would not be meeting the Chinese leader Xi Jinping before the 2 March deadline when their trade truce reaches an end.

The US government has previously warned that if a deal was not secured before the deadline it would hike 10% levies on Chinese products to 25%.

Two White House officials assured on Thursday that the most likely option is that tariffs will remain the same for now.

According to CNBC, a White House official advised the president against merging the issues of China and North Korea since he is set to meet Kim Jong-Un on 27-28 February.

Nevertheless both leaders are likely to meet after the deadline to secure a final trade deal between both countries.

When Trump was asked whether there would be a meeting in the next month or so, Trump said: “Not yet. Maybe. Probably too soon.”

Larry Kudlow, economic adviser to President Donald Trump, showed his pessimism about the summit: "The president has indicated that he is optimistic about a possible trade agreement, but there is a considerable distance before we reach a solution”, he told Fox Business.

Wall Street took this news badly and the falls were around 1% in the face of the new doubts regarding the meeting.

The Asian markets registered this morning their biggest fall in a month in the midst of these doubts.

"Chinese markets are still closed for the Chinese New Year and will reopen on Monday, however, Hong Kong merchants are returning to their desks and we are beginning to see volumes increase. The reaction we are seeing responds to the fear of deterioration of economic prospects, as well as growing concern about the fragile trade relationship between the United States and China," said Jasper Lawler, chief analyst at London Capital Group.