Trump says China tariffs will go ‘even higher’ without deal
Washington, US - US President Donald Trump on Tuesday warned that failure to get a trade deal with China will prompt more tariffs.
“If we don’t make a deal with China, I’ll just raise the tariffs even higher,” he told reporters at the White House.
Trump’s latest tough comment came as markets are watching intensely for signs of progress in the two economic superpowers’ attempt to reach a so-called ‘phase one’ partial deal taking the heat out of a growing trade war.
Predictions of a resolution have come and gone repeatedly as Trump veers from hints of imminent deals to declaring his satisfaction with the current standoff, because the United States is pulling in billions of dollars in trade tariffs.
Skeptics say even a partial pact hinges on Trump rolling back existing tariffs, something his latest comment about increasing the duties would appear to put in doubt.
The near-deal between the US and China that fell apart six months ago is now being used as the benchmark to decide how much tariffs should be rolled back in the initial phase of a broader trade agreement, people familiar with the talks told Bloomberg.
The two sides, who are locked in tough - perhaps final - negotiations on a phase-one pact, are discussing linking the size of tariff rollbacks to the preliminary terms set in that failed May deal, according to the people, two of whom said the White House is still debating the precise percentage internally.
The duties under discussion for a potential rollback include the initial tariffs on some US$250bn in Chinese goods that Trump imposed last year, according to two people.
US President Donald Trump