U.S. President Donald Trump and China's President Xi Jinping shake hands ahead of their bilateral meeting during the G20 leaders summit in Osaka, Japan, June 29, 2019. REUTERS/Kevin Lamarque

OSAKA (Reuters) - U.S. President Donald Trump said on Saturday he was open to a trade deal with Chinese President Xi Jinping that would be “monumental”, as they began high-stake talks that could ease tensions or plunge the world’s two largest economies into a deeper trade war.

“I actually think that we were very close and then something happened where it slipped a little bit and now we’re getting a little bit closer,” Trump said on the sidelines of the Group of 20 (G20) meeting in Osaka, western Japan.

“But it would be historic if we could do a fair trade deal. We’re totally open to it and you’re totally open to it,” he said.

“I think this will be a very productive meeting and I think we can go on to do something that truly will be monumental,” he added.