Question is who blinks first - Trump or Xi? People might think Trump as the obvious choice because of the rising costs of goods in the US but most don't get how bad the situation is in China currently.

Since around the real estate bubble crash China can't get the economy up and running as they used to. Economic activity is (very) low, unemployment is high especially among the young, in general people are in a bad mood.

Cutting trade with the US might push the situation into the red zone and that's probably what Trump hopes for - that the internal pressure makes him crack first.