In a positive move, US President Donald Trump said he will be “very nice” towards China in upcoming trade talks. Speaking in Washington, Trump assured that tariffs on Chinese goods would not be as high as 145%, as previously imposed during the peak of the trade tensions.
Trump mentioned that China would have no option but to make a deal with the United States. He also made it clear that he would not use a tough approach while negotiating with Chinese President Xi Jinping. Trump said, “We’re going to be very nice, and they’re going to be very nice, and we’ll see what happens.”
He further added that although the tariffs will come down substantially from 145%, they would not return to zero. “It used to be zero, and we were just destroyed. Now, it won’t be zero, but it will be much lower,” Trump explained.
Trump had imposed 10% tariffs initially on nearly all imports but increased it to 145% when China retaliated. Now, with this more moderate tone, markets are hoping for potential improvement in US-China trade.
Trump also emphasized that he has a good personal relationship with President Xi and was optimistic that a deal would be made. “If we don’t make a deal, we’ll set the deal. We’ll just set the number,” Trump stated, emphasizing that he believes that China would like to be included in a US-led trade situation.
In contrast, China has indicated that it desires some measures to be taken by the US federal government prior to resumed negotiations.
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Source: Moneycontrol.
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