"I think we are very close to doing something with China but I don't know that I want to do it", Trump told reporters at the White House before departing for Buenos Aires.
Mr Morrison will meet European Commission president Jean-Claude Juncker and European Council president Donald Tusk to discuss the latest progress on a free trade agreement as well as the World Trade Organisation reforms.
Trump's hardline trade adviser, Peter Navarro, will attend a meeting between Trump and Xi, a source familiar with the situation told Reuters.
Economic advisor Larry Kudlow told a White House press conference that "the president said there is a good possibility that we can make a deal and he is open to it". China has responded with tariffs of its own on USA goods, targeting farm states that are an important part of Trump's political base.
It particularly wants to prevent exports to China of advanced technologies in areas such as artificial intelligence and robotics and has tightened rules on foreign investment in 27 sensitive sectors to stop Chinese deals.
The trade tension between the US and China poses risks for the economy and has already led to higher costs for business, some of which have been passed on to consumers, Federal Reserve officials warned, according to minutes released Thursday from the November 7-8 meeting of the Federal Open Market Committee. "Trump aides say he is wary of any deal that makes him look weak", according to the Wall Street Journal.
Boca Juniors refusing to play Copa Libertadores final against River Plate
In a match at Boca's stadium, fans doused River players with pepper spray in the tunnel before they entered the field. The first meeting ended in a 2-2 draw almost a fortnight ago after being rescheduled due to torrential rain.
There has never been a formal bilateral meeting between the Australian prime minister and the USA president at the G20, given the meetings are often held at Asian summits, but government sources are hopeful of arranging the talks.
In a statement on Wednesday, US Trade Rep. Robert Lighthizer complained that China slaps 40-percent tariffs on US auto imports-more than the 15-percent tariffs it imposes on other countries and the 27.5-percent US tax on Chinese auto imports.
A Reuters poll on Wednesday showed China's factories likely struggled to grow for a second straight month in November as cooling demand at home and the threat of higher United States tariffs stifled new orders.
After igniting a trade war with China and threatening tougher tariffs to come in January, Trump is also slated to sit down with President Xi Jinping on the G20 margins to press for wholesale reform of the world's second-biggest economy in favour of access for United States companies.
In a Twitter post yesterday, Trump said: "Billions of Dollars are pouring into the coffers of the U.S. because of the Tariffs being charged to China, and there is a long way to go". One offer, according to Chinese officials: in return for the suspension of USA tariffs, Beijing would agree to lift restrictions on China's purchases of US farm and energy products.