Treasury Secretary Scott Bessent stated on CNBC that the upcoming summit between President Donald Trump and Chinese Leader Xi Jinping could be delayed if President Trump decides to remain in Washington to coordinate the ongoing war effort in Iran, rather than for reasons related to pressuring China to help reopen the Strait of Hormuz [1]. Bessent clarified that any delay would be due to logistical concerns stemming from the president's responsibilities as commander in chief during the conflict, not because of demands for China to police the strait [1].
The Trump-Xi meeting is currently scheduled to take place in China from March 31 to April 2, marking the first visit by a U.S. president since Trump’s 2017 trip. The summit comes as the U.S. assault on Iran has largely shuttered the Strait of Hormuz, a critical passage for roughly 20% of the world’s oil, causing global oil prices to soar and the strait to remain largely impassible [1]. Trump commented that other countries, particularly China, should assist in reopening the strait for shipping, questioning why the U.S. is maintaining the passage when it primarily benefits China and other nations [1].
In the lead-up to the summit, tensions between the U.S. and China have escalated. The Trump administration recently announced new trade investigations into China and more than a dozen other countries after the Supreme Court ruled the president’s initial tariff tool unlawful, effectively nullifying large portions of the levies [1]. These investigations are being conducted under Section 301 of the Trade Act of 1974, which permits the U.S. to impose tariffs on countries found to engage in unfair trade practices [1]. China has responded by labeling the U.S. investigations as "extremely unilateral, arbitrary and discriminatory" [1].
Additionally, the U.S. and China continue to clash over artificial intelligence, with Washington seeking to limit Beijing's access to advanced technologies [1]. The ongoing war in Iran, the impassibility of the Strait of Hormuz, and heightened trade tensions are contributing to significant uncertainty in global markets, particularly in the energy sector [1].
CONCLUSION
The potential delay of the Trump-Xi summit, driven by the ongoing Iran conflict and escalating trade tensions, is creating considerable uncertainty in global markets. The shuttered Strait of Hormuz and new trade investigations have heightened volatility, especially in the energy sector. Market participants are closely watching for further developments as both geopolitical and economic risks remain elevated.