Ahead of Trump-Xi Summit, US-China Trade Uncertainty Still Looms Large

As the Trump-Xi summit approaches in mid-May 2026, trade remains the central issue in US-China relations. The Middle East conflict, which initially prompted the summit's postponement from early April to mid-May, continues to send shockwaves through global trade and US-China relations. Last month, the US administration sanctioned five Chinese refineries for purchasing Iranian oil. Beijing responded by invoking a Chinese law protecting firms that continue to do business with these facilities. Since the Supreme Court struck down IEEPA tariffs in February 2026, the Trump administration is leveraging new legal avenues to rebuild its tariff wall through a combination of Section 301 and Section 232 tariffs. China, originally the prime target of Trump's Liberation Day tariffs, has emerged as one of the ruling's biggest beneficiaries.