Extension to tariff truce could pave the way to a Trump-Xi summit

Analysts say meeting, which could happen in China, may lead to a turning point in ties

- Bhagyashree Garekar

AUSTIN, Texas - The United States and China appear to be pulling back from their trade war, with President Donald Trump extending a pause on tariffs in what could be a prelude to a summit with his Chinese counterpart Xi Jinping in Asia.

The world's two largest economies have decided to set aside threats to impose triple-digit tariffs on each other for another 90 days, according to an executive order signed by Mr Trump on Aug 11, hours before an existing 90-day trade truce with China was set to expire.

A likely venue for a bilateral meeting between the two presidents could be Kuala Lumpur, which is hosting Asean's East Asia Summit from Oct 26 to 28. Both leaders have confirmed they will attend the summit.

The other possibility is the sidelines of the Asia-Pacific Economic Cooperation (Apec) leaders' summit in 2025, to be held from Oct 31 to Nov 1 in Gyeongju, South Korea.

But there is a third possibility, which might hold special appeal for Mr Trump and, according to some observers, would be more in keeping with his penchant for dramatic actions: a quick trip to China.

The Straits Times has learnt from sources close to the administration that preparations are under way in Washington for a possible US presidential trip to China between the Asean and Apec meetings.

Officials in Beijing are also on standby.

Things could change, however, as it is still early days, said a source asking for anonymity to discuss sensitive information.

Should it take place, the meeting would be the most critical between world leaders in 2025.

"It is probably not a coincidence that the summit is supposed to be at the end of October, before the trade truce expires on Nov 9," said a Washington-based source close to US officials planning the trip.