Trump says China isn’t ‘stepping up’

After almost a year of bargaining, trade talks show signs of languishing

Nearly six weeks after claiming he had agreed “in principle” on a partial trade deal with China, President Donald Trump suggested on Wednesday that the agreement might not be finalized this year because of Chinese foot-dragging.

Trump’s comments, made while touring an Apple supplier facility in Texas, came as investors appeared to be growing impatient with his inability to deliver the promised accord.

Asked by a reporter if the deal would be completed this year, the president said: “I haven’t wanted to do it yet because I don’t think they’re stepping up to the level that I want.”

After nearly a year of bargaining, negotiators remain stuck on several core issues, including the extent of Chinese commitments to buy American farm products and U.S. willingness to reverse its tariff plans.

The president did nothing Wednesday to dispel the uncertainty shortly before leaving for a trip to Texas where he planned to tour a factory that makes Apple Mac Pro computers.

“We continue to talk to China. China wants to make a deal. The question is: Do I want to make a deal? Because I like what’s happening right now. We’re taking in billions and billions of dollars,” Trump told reporters in a misleading reference to his tariffs on Chinese products, which are overwhelmingly paid by American companies.

Privately, Trump is more eager to announce a finished agreement and is being counseled by his trade advisors to lower his expectations, according to a senior administration official who requested anonymity to describe internal deliberations.

The Dow Jones Industrial Average sank nearly 200 points in midday trading following a Reuters report that the so-called “phase one” deal might not be finished this year, a risk the president already had acknowledged on Nov. 8.

“Understandably, the longer the talks drag out, the more investors are concerned that there will never be a resolution to the tariff dispute,” said Andy Rothman, an investment strategist with Matthews Asia in San Francisco. “But I don’t see any evidence that Trump has changed his mind about the importance of doing a deal, so I think it will get done.”