Photo: Adam Bettcher/Getty Images

Senior administration officials tell Axios that a trade deal with China isn't close and that the U.S. could be in for a long trade war.

The state of play: A senior administration official said the differences between the two sides are so profound that, based on his read of the situation, he can't see the fight getting resolved before the end of the year.

  • Trump yesterday held out the possibility of meeting Chinese President Xi Jinping at the G20 in Japan next month. That statement may have been made in part to calm the stock market, which yesterday had its worst day since January. (Lead Financial Times headline: Global markets reel.")

The bottom line: White House economic adviser Larry Kudlow was right when he said on Sunday that "both sides will suffer" in a U.S.-China trade war.

  • The Chinese economy will be harmed. But so, too, will America's. And so will American consumers, who will pay higher prices, and American farmers, who will be targeted for retaliation by China.
  • The question remains: Can Trump, facing a re-election race in 2020, outlast China's "president for life"?
  • Both Trump and Xi have to contend with hardliners in their parties. But only one of them can harness all the tools of authoritarianism.

Trump’s mindset on the Chinese is simple: They only respond to shows of brute force.

  • And he thinks they’ll suffer more than America will, because they buy fewer products.

I've asked several current and former administration officials whether Trump actually believes that China pays the tariffs — rather than the reality that U.S. importers and consumers do.

  • The consensus is "yes": That's what he actually believes.
  • And as one former aide said: There’s little point trying to persuade Trump otherwise, because his belief in tariffs is "like theology."

Go deeper ... Trump's trade war: Where American workers are hit hardest

Go deeper

7 mins ago - Technology

Judge temporarily halts U.S. WeChat ban

Photo: Sheldon Cooper/SOPA Images/LightRocket via Getty Images

A federal judge early on Sunday temporarily blocked a Trump administration order banning the downloads of the Chinese-owned, global messaging app WeChat.

Why it matters: The temporary injunction means WeChat will remain on Apple and Google's app stores, despite a Commerce Department order to remove the app by Sunday evening.

Bill Clinton slams McConnell and Trump: "Their first value is power"

Former President Bill Clinton on Sunday called Senate Majority Leader Mitch McConnell's (R-Ky.) vow to fill Ruth Bader Ginsburg's vacant Supreme Court seat before the next presidential inauguration "superficially hypocritical."

The big picture: Clinton, who nominated Ginsburg to the court in 1993, declined to say whether he thinks Democrats should respond by adding more justices if they take back the Senate and the White House in November. Instead, he called on Republicans to "remember the example Abraham Lincoln set" by not confirming a justice in an election year.

Pelosi: Trump wants to "crush" ACA with Ginsburg replacement

House Speaker Nancy Pelosi said on ABC's "This Week" on Sunday that President Trump is rushing to replace the late Supreme Court Justice Ruth Bader Ginsburg because he "wants to crush the Affordable Care Act."

Why it matters: Pelosi wants to steer the conversation around the potential Ginsburg replacement to health care, which polls show is a top issue for voters, especially amid the coronavirus pandemic. The Trump administration has urged the courts to strike down the law, and with it, protections for millions with pre-existing conditions.