Donald Trump sees trade deal with 'friend' Xi Jinping

  • Donald Trump sees trade deal with 'friend' Xi Jinping

Donald Trump sees trade deal with 'friend' Xi Jinping

"President Xi [Jinping] and I will always be friends, no matter what happens with our dispute on trade", Trump wrote on Twitter.

"China uses mercantile practices and the Trump administration is right to contest those actions, but there are many reasons the tariff approach is not the right one", said Stephen Ezell, vice-president for global innovation policy at the Information Technology and Innovation Foundation, a technology-focused think-tank. "Taxes will become reciprocal & a deal will be made on Intellectual Property".

In a tweet yesterday President Trump challenged China's position, predicting that Beijing would engage with Washington.

On Thursday, Trump directed USA trade officials to identify tariffs on another $100 billion of Chinese imports, upping the ante in an already high-stakes trade confrontation between the world's two largest economies.

Trump increased levies on Chinese imports last week over allegations China has been ripping off USA technology for its own gains.

Trump's senior economic advisers on Sunday dismissed talk of a trade war and said the president is serious about imposing tariffs, even as talks continue with China.

"We've changed now our designation in the national security strategy of China to a strategic competitor".

New Zealand's Trade Minister David Parker said the sudden escalation in trade threats was alarming. SC is home to the only US manufacturer of BMW cars, whose chief executive said last month that steel and aluminum import tariffs imposed by Trump could hurt his company.

Trump hit back again late Thursday, instructing trade officials to consider the additional levies on $100 billion in imports. China's retaliation so far has targeted Midwest farmers, many of whom were bedrock Trump supporters.

"The suffering from a trade war will stimulate China to ... innovate, which may offer a chance for China to more quickly narrow the gap in national power with the United States", it said.

"You'll know when we reach a deal there's progress, and that's our objective", Mnuchin said. Trump responded by directing US trade representatives to consider an additional tariff on $100 billion of Chinese goods.

The dispute began in March when Trump announced a 25 percent tariff on steel and aluminum imports from all countries except Canada and Mexico.

On the other hand, over prior weeks Mohammed El-Erian and Martin Feldstein had argued that what mattered was not trade deficits but getting China to respect intellectual property rights, which in the longer term could bring about a better global trading system.

The domestic controversy represents China's biggest strength, as their authoritarian regime does not have to worry about dissent.

"How cynical it is for the Chinese, basically, rather than respond graciously and stop doing all this bad stuff they're doing, to attack American farmers?"

Treasury Secretary Steven Mnuchin declined to comment on the substance of trade talks with China during an interview on CBS' "Face The Nation".

He said he did not think there will be a trade war.

"We're talking about a lot of money that goes down, just on the speculation of having a tariff put in place", Rounds said on "Meet the Press".