Trump expresses intention to reduce trade taxes on China at a future time

Trump expresses intention to reduce trade taxes on China at a future time

President Trump Softens Stance on China Tariffs

In a recent chat with NBC's "Meet the Press with Kristen Welker", President Donald Trump hinted at a potential lowering of tariffs on Chinese imports, stating that business with China is crucial and their economy is struggling.

Trump suggested that the tariffs, currently at a staggering 145% and 125% on Chinese and American goods respectively, would inevitably decrease. He said, "At some point, I'm going to lower them because otherwise you could never do business with them."

China's economy, heavily reliant on exports, has been hit hard by the trade war. In April, factory activity in China showed its steepest contraction in 16 months, while new export orders dipped to their lowest level since 2022 during the Covid-19 pandemic.

Although Trump acknowledged the impact of tariffs on China, causing factory closures and skyrocketing unemployment, he reiterated that he would not be the one to initiate their removal. "You're not dropping the tariffs against China to get them to the negotiating table?" Welker asked. Trump's response was straightforward, "Why would I do that?"

China is assessing proposals for trade talks originating from the U.S. However, a spokesperson for China's Commerce Ministry has emphasized that Trump needs to "cancel" his unilateral tariff hikes before the talks can begin.

A Potential Reprieve for TikTok

During the same interview, Trump expressed his willingness to extend the deadline given to Chinese company ByteDance to sell the U.S. operation of TikTok. The popular short video platform, with 170 million American users, has been under threat due to national security concerns.

Trump stated, "I'd like to see it done," adding that he has a "sweet spot" for the platform, which played a significant role in his 2024 presidential campaign by helping him appeal to young voters.

Congress passed a law last year requiring TikTok to divest from the U.S. or face a ban. Despite American investors showing keen interest in the app, a deal has yet to be reached. Trump emphasized that TikTok will be protected if a sale transpires.

Trade Talk Flexibility

Besides China, Trump stated that his administration is meeting with "almost" every country, and some trade deals "could very well be" announced this week. He asserted, "We're negotiating with many countries but at the end of this I'll set my own deals because I set the deal, they don't set the deal."

Depending on the status of negotiations, he added, "At a certain point I'll be just setting a certain tariff number."

Trump also mentioned that he has no plans to speak to Chinese leader Xi Jinping this week. However, he expressed optimism about ongoing discussions between the two nations.

Insights into China-U.S. Trade Talks

As of January 2024, the trade relationship continues to be complex, with both nations maintaining cautious pragmatism but no major breakthroughs. Key proposals and status include:

1. Phase One Agreement Status: The 2020 Phase One deal remains in place, albeit with China falling short of purchasing the agreed-upon $200 billion in additional U.S. goods and services. Retaliatory tariffs remain on billions of dollars of goods from both nations.
2. Recent Engagement: High-level diplomacy and working groups have been established to discuss export controls, economic policy, and technical standards. Limited concessions have been made, such as China resuming purchases of U.S. soybeans and liquefied natural gas, and the U.S. easing some restrictions on solar panel imports from China.
3. Key Proposals: The U.S. aims to address non-market practices, supply chain resilience, and export controls, while China seeks tariff reductions, relaxation of tech restrictions, and equal market access for Chinese firms in the U.S.
4. Outlook and Challenges: Fundamental disagreements on tech policy, Taiwan, and human rights limit progress, and a stalemate is likely. U.S. political dynamics could harden positions, while China may seek short-term stability.

As geopolitical tensions remain fluid, it's essential to consult sources like the U.S. Trade Representative (USTR) or China’s Ministry of Commerce for real-time updates on trade talks between China and the U.S.

1. Despite the steepest contraction in factory activity in China in 16 months, President Trump hinted at a potential lowering of tariffs on Chinese imports, acknowledging that business with China is crucial.
2. In a recent chat with NBC's "Meet the Press with Kristen Welker", Trump expressed his willingness to extend the deadline given to Chinese company ByteDance to sell the U.S. operation of TikTok, which has been under threat due to national security concerns.
3. Trump suggested that the tariffs, currently at a staggering 145% and 125% on Chinese and American goods respectively, would inevitably decrease, aiming to do business with China without initiating their removal.
4. A spokesperson for China's Commerce Ministry has emphasized that Trump needs to "cancel" his unilateral tariff hikes before trade talks can begin, as China assesses proposals for trade discussions originating from the U.S.
5. Although China and the U.S. maintain cautious pragmatism in their trade relationship, with no major breakthroughs as of January 2024, Trump stated that his administration is meeting with "almost" every country, and some trade deals "could very well be" announced this week.

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