AsianFin -- U.S. President Donald Trump is raising hopes of a deal to quell fresh trade tensions with China as the world’s top two economies get closer to sitting at the negotiation table.
AI Generated Image
Trump on Monday said he expected he would reach a “fantastic” trade deal with China . "I think we’re going to end up having a fantastic trade deal with China," Trump told reporters at the White House. The president also said he plans to visit China “fairly early next year” when he met with Australian Prime Minister Anthony Albanese.
Trump reiterated his threat of extra tariffs on China if no deal is reached by the November 1 deadline, but expressed his optimism about an agreement through his planned meeting with Chinese President Xi Jinping, adding that the U.S. leadership has been very respectful of the U.S. “I think when we finish our meetings in South Korea, China and I will have a really fair and really great trade deal together,” said Trump.
Trump on Monday acknowledged the Taiwan issue would be one of topics when he meets with Xi on the sidelines of the APEC summit held in South Korea next week, but played down the risk of a clash over the issue. He suggested China had no intention of invading Taiwan.
"We're going to be talking about a lot of things. I assume that will be one of them, but I’m not going to talk about it now," replied Trump, when asked whether the U.S. might adjust its position on Taiwan independence in order to reach a trade deal with China.
Besides the Taiwan issue, Trump on Sunday floated a list of demands for China. Rare earths, fentanyl and soybeans are among his top issues to address with Beijing at the negotiation table. “I don’t want them to play the rare earth game with us,” Trump said on Air Force One on Sunday. He indicated he is seeking to secure China’s resumption of soybean purchases, and said the U.S. wanted China to stop with the fentanyl, indicating Beijing should help end the flow of fentanyl and other synthetic opioids from China to the U.S.
Trump on Monday said China stopped imports of soybeans from the U.S. as a way of punishment. "It is punishment to our farmers, but we’re not going to allow that to happen," he said.
Trump earlier this month warned he would impose an additional 100% tariffs and software export controls on China as the retaliation for Beijing's recent rare earth export controls.The United States will impose an additional 100% Tariff on Chinese imports, starting on November 1 or sooner, depending on any further actions or changes taken by China, and export controls on “any and all critical software” will go into effect on November 1, Trump wrote in a Truth Social post on October 10.
But Trump in a Fox Business Interview on Friday eased his stance on Chinese tariffs. When asked if the levies he has threatened to impose on China could remain in place without significantly affecting the economy, Trump said the new tariffs were “not sustainable.” “But that’s what the number is, it’s probably not, you know, it could stand, but they forced me to do that,” he added.
Trump later Friday said he thought the U.S. was “going to do fine with China” and he gets along “great” with Chinese leader Xi.He showed optimism about his meeting with Xi could lead to a trade peace. “I think so. It looks like it’s going forward. I think so, they want to meet. We like to meet,” he said.
U.S. Treasury Secretary Scott Bessent on Friday said Chinese Vice Premier He Lifeng will meet in Malaysia to prepare for Trump and Xi’s meeting.
Bessent and U.S. Trade Representative Jamieson Greer on Friday evening had a video call with He. The Treasury chief described the call as frank and detailed discussions and regarding trade between the United States and China. He reaffirmed plans of in-person meeting with He this week to continue their discussion.
