Tensions between the U.S. and China escalated in the weeks leading up to a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping

China and the United States have escalated in their trade dispute over new port fees on commercial vessels. Business groups have warned that such measures could raise consumer costs, while U.S. labor unions have supported them to protect domestic industry.

By Jihoon Lee GYEONGJU, South Korea (Reuters) -South Korea aims to deepen cooperation with the United States, stabilise supply chains with China, and diversify its trading partners to navigate global challenges,

Rare earths aren’t the only leverage China has. American farmers — among Trump’s most loyal supporters — have traditionally depended on China to buy about a quarter of the soybeans they produce. But China has stopped buying American soybeans this year, choosing to use Brazilian and Argentinian suppliers instead.

China on Sunday accused the United States of espionage against the country's top time center, which China said could seriously impact the orderly functioning of its society.

Financial markets kicked off the week by gleefully cheering the weekend’s headlines that trade talks between the United States and China went smoothly. Just weeks earlier, Trump had threatened to impose a 100% tariff on Chinese exports and said he might call off a meeting with Chinese President Xi Jinping.

U.S. Trade Representative Jamieson Greer touted progress on a trade agreement with China but said he thinks the deal’s ultimate success depends on President Trump and Chinese President Xi Jinping.

President Trump will meet with Chinese President Xi on Thursday in an attempt to stop the trade war from escalating. Also, Trump terminated trade talks with Canada again after a TV ad played an audio of former President Ronald Reagan criticizing tariffs.