President Donald Trump is likely to strike a trade agreement with China this year given that he'll be looking for re-election in 2020, the chief executive officer of Dutch bank ABN Amro told CNBC Tuesday.

Trump has been at odds with China over trade since his campaign trail in 2016. And since the start of his presidential tenure the U.S. has put tariffs on $250 billion in Chinese goods. Beijing has responded with tariffs on $110 billion worth of U.S. goods. The standoff has been at the front of many investors' minds, as they try to understand how businesses will be impacted by the new tariffs.

"It is quite gloomy compared to last year," Kees van Dijkhuizen, the CEO of ABN Amro told CNBC at the World Economic Forum in Davos about the world's economic prospects.

"Looking at the U.S., I think Mr Trump wants to be re-elected next year so I think he will strike a deal somewhere down the road this year," he said.