Daily Management Review

A Formal Trade Deal With China Is Quite Likely: Trump


A Formal Trade Deal With China Is Quite Likely: Trump
There was significant progress in the trade talks with China, said United States President Donald Trump and added that a final agreement on a deal "will probably happen". He also said that just because he has called for retaining the import tariffs on Chinese products into the US for some more time, it does not mean that there was any issues in the trade talks.
Trump expected to keep a 25 per cent import tariff on European light trucks, he said during a television interview that was aired on Friday, even as the US is holding separate ongoing negotiations on trade with the European Union. He also added that such tariffs can be avoided by auto companies by just setting up factories in the US.
The agenda of “America First” of the Republican president has seen the Trump administration getting involved in ongoing trade talks with both the European Union and China. While there are rumours of a possible summit between Trump and Chinese President Xi Jinping to seal a final deal on trade, top U.S. trade negotiators would be going to Beijing in the coming days for more negotiations.
"Our deal is coming along very well. We'll see what happens," Trump told Fox Business Network regarding China. "I think the deal will probably happen. I think they need it very badly."
When he was questioned about the remarks that he had made earlier in the week about the keeping in place of US tariffs on Chinese goods for a period of time and whether that indicated some form of issues cropping up in the trade negotiations with China, Trump said, "No, not at all."
Trump also talked about at length about the European auto sector. "We get a 25 percent tariff on that segment - that's our best segment by far. And yes, we will absolutely be able to keep it - not only keep it going, I really think we have tremendous potential," he told the television network in the interview, which was taped on Thursday.
"I'll tell you what the end game is. They'll build their plants in the United States and they have no tariffs," Trump added. Then, asked if he would agree to zero tariffs, he said: "I would do it for certain products, but I wouldn't do it for cars."
The Trump administration had decided to refrain from imposing increased import tariffs on cars made in the EU back in July last year because the US and the EU were attempting to better their economic ties. But according to a comment from the U.S. ambassador to the EU on Thursday, Europe was not up to expectations in the trade negotiations.
In regards to the legal justification about the possibility of imposing high import tariffs on cars because of a threat to national security, the U.S. Commerce Department has presented its report to the White House.
When question about whether autos and auto parts presented any national security risks, Trump said: "well, no."
"What poses a national security risk is our balance sheet. We have to have -- we need a strong balance sheet. Otherwise you don't have national security," Trump added. "We're straightening it out."