Donald Trump Says A Trade Deal With China Could Be A Possibility

During remarks made aboard Air Force One on May 4, US President Donald Trump reiterated his intent to pursue a fair trade agreement with China. Addressing reporters while en route, Trump clarified that while he had no scheduled conversation with Chinese President Xi Jinping this week, dialogue between American and Chinese officials remained ongoing on a range of trade-related topics.

Asked whether any formal trade announcements were on the horizon, Trump responded that it was a possibility, saying it could "very well be," though he provided no specifics. He noted that the US was concurrently in talks with several countries on trade deals, with China being one of the key nations involved, reported Reuters.

Tariff Strategy and Tough Stance on China

Since the imposition of new trade measures on April 2, the Trump administration has  actively engaged in negotiations with multiple trading partners. The US government introduced a 10 per cent tariff on imports from most countries and raised tariff rates for several others, although these increases were temporarily suspended for a 90-day period. Additional tariffs included 25 per cent levies on automobiles, steel, and aluminum, alongside separate 25 per cent tariffs on Canada and Mexico, and a steep 145 per cent tariff on China.

Trump hinted that not all discussions would lead to agreements, implying that in cases where negotiations stalled, the US might proceed with “setting a certain tariff” on those nations within two to three weeks.

He did not confirm whether this referred to the reciprocal tariffs unveiled on April 2, which are expected to take effect on July 8, after the 90-day suspension ends.

The president also repeated a familiar criticism of China’s trade practices, stating, “China had been ripping us for many years.” He went on to argue that former President Richard Nixon’s decision to initiate diplomatic ties with China was “the worst thing” Nixon had done.

Also Read :Manufacturing Index Falls Across Global Economies, Tariff Uncertainties Impact Output

Signs of Optimism Amid Trade Tensions

Despite his stern rhetoric, Trump appeared more optimistic during an interview with NBC News, recorded on Friday and aired Sunday. In the conversation, he acknowledged his administration’s hardline stance, saying, “We’ve gone cold turkey. That means we’re not losing a trillion dollars ... because we’re not doing business with them right now.”

He also suggested that China was showing increased interest in resolving trade disputes. “They want to make a deal. They want to make a deal very badly,” Trump said, before emphasising the US position, “We’ll see how that all turns out, but it’s got to be a fair deal.”

business