Trump calls for new ‘structure’ for US-China trade negotiations

US president teases ‘big news’ for auto workers, offers no details

WASHINGTON, May 23, (RTRS): US President Donald Trump on Wednesday signaled a new direction in US-China trade talks, saying the current track appeared “too hard to get done” and that any possible deal needed “a different structure.”

In an early morning post on Twitter, Trump cited difficulties such as verification but gave no other details about what he or his administration was looking for amid ongoing negotiations.

Representatives for the White House did not respond to a request for more information about the president’s statement. Representatives for China’s Foreign Ministry did not immediately respond to a request for comment on Trump’s statement.

“Our trade deal with China is moving along nicely, but in the end we will probably have to use a different structure in that this will be too hard to get done and to verify results after completion,” Trump wrote in his post.

Trump’s statement comes amid the negotiations between the world’s two largest economies after potential tariffs on both sides raised fears of a trade war, even as some tensions have eased over signs of some possible progress.

Both sides claimed victory on Monday and pledged to continue talking after last week’s round in Washington produced pledges that China would import more American energy and agricultural commodities, although there were no specifics.

US Commerce Secretary Wilbur Ross was expected to visit China next week to help finalize an agreement. US Treasury Secretary Steven Mnuchin told CNBC on Monday that Ross aimed to negotiate “a framework” that could then turn into “binding agreements ... between companies.”

Meanwhile, Trump who has repeatedly pledged to revive American manufacturing, said on Wednesday that “big news” was coming that would be welcomed by US auto workers but he gave no details.

“There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!” Trump said in a tweet.

The White House declined to comment, and the office of the US Trade Representative referred queries to the White House.

Automakers scrambled after the tweet to get details. Some of them speculated that Trump could be referring to trade with the European Union.

In a meeting earlier this month with major automakers, Trump threatened to impose 20 percent or 25 percent tariffs on EU-built vehicles, according to three people briefed on the talks.

Trump has repeatedly criticized the large trade imbalance on autos between the United States and the EU. In March, he threatened in a tweet to “simply apply a Tax on their Cars which freely pour into the US”

The United States imposes a 2.5 percent tariff on cars assembled in Europe and a 25 percent tariff on Europeanbuilt vans and pickup trucks. Europe imposes a 10 percent tariff on US-built cars.

Auto trade has been a big sticking point in talks between the United States, Mexico and Canada as they try to update the North American Free Trade Agreement (NAFTA).