Trump Says New China Trade Deal Is ‘Possible’ Despite Tensions
US President Donald Trump said it would be possible to reach a fresh trade deal with China, signaling he is open to heading off a brewing trade fight between Washington and Beijing.
“It’s possible, it’s possible,” Trump told reporters on Air Force One on Wednesday, when asked if he would make a new agreement with China.
Trump did not describe the parameters of a potential deal, and any agreement would face significant obstacles — some of the president’s own making. Trump has ratcheted up pressure on China with an additional 10% tariff on all imports from the country, punishment for what he said are unfair Chinese trade practices and failure to stop the flow of fentanyl into the US.
The president nonetheless heaped praise on Chinese President Xi Jinping, but once again did not say if or when they would speak directly.
“There’s a little bit of competitiveness, but the relationship I have with President Xi is, I would say, a great one,” Trump said.
The Chinese yuan climbed on Trump’s comments, gaining 0.2% in the offshore market after three straight sessions of drops. The onshore yuan rose 0.1%.
Trump brokered what was billed as an initial trade deal with China in Jan. 2020, under which Beijing promised to crack down on theft of US trade secrets and technology, pledged to purchase an additional $200 billion in American products by the following year and lower some trade barriers for US exports. But the relationship was derailed just weeks later when the coronavirus pandemic swept the globe, which Trump blamed on China.
“They had about $50 billion worth of our product, and we were making them buy it. The problem is that Biden didn’t push them to adhere to it,” Trump said, referring to his predecessor.
Source : Bloomberg
