President Donald Trump took to Truth Social early Wednesday to comment on ongoing trade tensions with China, days after accusing Beijing of failing to follow through on commitments to reduce tariffs and loosen trade barriers. In his message, he described Chinese President Xi Jinping as a formidable counterpart.
“I like President Xi of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH,” Trump wrote.
Earlier this week, White House Press Secretary Karoline Leavitt indicated that a conversation between Trump and Xi was expected in the coming days as the two sides worked to resolve disagreements stemming from last month’s tariff pact signed in Geneva, along with other outstanding trade matters.
Meanwhile, Chinese Foreign Minister Wang Yi, in his first formal discussion with U.S. Ambassador David Perdue on Tuesday, criticized the Trump administration’s trade actions. Wang called them “negative measures” based on “groundless reasons” that, he said, infringe on China’s rights and interests, according to CNBC.
A Chinese summary of the conversation stated that Perdue conveyed that Trump holds “great respect” for Xi.
Chinese officials also urged Washington to compromise and cooperate, asking the United States to meet China “halfway” in order to return the relationship to a more constructive path.
“This is apparently Beijing trying to leave the impression that the Trump [administration] wants to talk,” said Neo Wang, the lead China economist at Evercore ISI, speaking to CNBC. “Beijing publicly doing so indicates the phone call is drawing near.”
Wang noted that the meeting between Perdue and Wang was part of an effort to establish goodwill ahead of the potential Trump-Xi phone call, so that Xi would not be placed in an awkward position if Trump reacted harshly afterward.
In a related development, a U.S. trade court recently found that Trump had exceeded his authority with many of the tariffs imposed on China and other nations. However, within a day, a federal appeals court issued a stay, reinstating the tariffs temporarily while it considers the administration’s appeal.
China has been the focal point of Trump’s tariff actions since April 2, when he imposed duties of 145% on Chinese imports. China quickly responded with its own tariffs, levying 125% on a range of American goods.
In May, the two countries took steps to reduce tensions. Trump postponed implementation of most tariffs on other nations until July 9.
Despite that easing, Trump has moved ahead with increasing duties on steel and aluminum, raising them from 25% to 50%.
The broader impact of Trump’s tariff strategy is also drawing scrutiny in Europe, where it has become a topic of discussion at the OECD meetings in Paris this week. The Organization for Economic Cooperation and Development cut its global growth forecast, citing the effects of Trump’s trade policies, according to AFP.
“The United States economy will suffer the most from Trump’s moves on tariffs,” OECD Chief Economist Alvaro Pereira told AFP.
U.S. Trade Representative Jamieson Greer and EU Trade Commissioner Maros Sefcovic are set to meet on the sidelines of the OECD gathering, as the European Union attempts to persuade Washington to scale back its tariff increases before the July 9 deadline.
{Matzav.com}
