President Donald Trump's threat to impose punishing new tariffs on $300 billion in Chinese goods looms over his planned meeting with Chinese President Xi Jinping at the G-20 summit of world leaders.

The two world leaders are scheduled to meet Saturday, the second day of the two-day summit in Osaka, Japan. Officials from both countries have been careful to manage expectations ahead of the summit, playing down the possibility of completing a trade deal.

Both leaders stand to benefit from a deal that staves off new tariffs. But hardliners and nationalists in Beijing and Washington are pressing in the opposite direction, urging further separation between the two countries, fueled by concerns economic and military matters.

Some former diplomats worry that if Trump maintains the tariff threat he could scuttle a chance for a deal.

"That's got to get off the table at the meeting," said Richard Boucher, a former State Department official who later served as deputy secretary-general of the Organization for Economic Cooperation and Development. "Trump has got to say, if we make these deals, I will not go ahead with any future tariff increases."

If Trump and Xi fail to reach a deal and tariffs escalate, the consequences would likely be dramatic, with some major economists suggesting a global recession could result. But during an interview on Wednesday on Fox Business, Trump seemed to play down the potential consequences of failing to make a deal.

"It's possible we are going to make a deal," Trump said. "But I'm also very happy where we are now."