Trump says US un­der 'no pres­sure' for China trade deal

Daily Messenger - - Biz -

WASH­ING­TON: The US Pres­i­dent Don­ald Trump said Wash­ing­ton is un­der "no pres­sure" to achieve a trade deal with China as the prospect of new tar­iffs loom.

The com­ments come amid re­ports the two sides could re­sume talks to stave off a third round of US tar­iffs. China wel­comed the of­fer of talks and said the two coun­tries were dis­cussing the de­tails, ac­cord­ing to re­ports.

The US has launched a trade war against China which could see all of its ex­ports to the US sub­ject to du­ties. "We are un­der no pres­sure to make a deal with China, they are un­der pres- sure to make a deal with us," Mr Trump said in a tweet on Thurs­day. "Our mar­kets are surg­ing, theirs are col­laps­ing." The US and China have slapped tar­iffs on $50bn of one an­other's goods this year in an es­ca­lat- ing trade war be­tween the world's two largest economies.

The tar­iffs are the lat­est Trump pol­icy to chal­lenge the free trade sys­tem which has pre­vailed for decades. They are al­ready af­fect­ing com­pa­nies, par­tic­u­larly the au­to­mo­bile in­dus­try, and hurt­ing economies.

Mr Trump said last week he could move "very soon" to im­pose tar­iffs on an ad­di­tional $200bn (£153bn) worth of prod­ucts with taxes on an­other $267bn "ready to go on short no­tice". If both sets of tar­iffs go ahead it would mean vir­tu­ally all of China's US ex­ports would be sub­ject to new tar­iffs.

"The [US] ad­min­is­tra­tion views tar­iffs as a way of get­ting the at­ten­tion of the Chi­nese lead­er­ship and in­creas­ing their lever­age at the ne­go­ti­at­ing ta­ble," Michael Fro­man, former US trade rep­re­sen­ta­tive told the BBC. "I don't think the im­po­si­tion of tar­iffs are a wise move be­cause it's a tax, it's a tax on the con­sumer ul­ti­mately. It's also very disruptive to com­pa­nies who are try­ing to man­age global sup­ply chains."

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