Trump hints at not imposing new round of tariffs on China
19 November, 2018, 00:37 | Author: Essie Rivera
"China would like to make a deal".
The rising deficit with China is probably a short-term phenomenon, and seems unlikely to persist if Trump follows through with his threat to extend tariffs to all Chinese imports and raise rates from the current 10% to 25% should the two nations fail to reach a deal before the end of the year.
Trump already has imposed steep tariffs on $250 billion of Chinese goods, and has threatened to hit another $267bn, which would be all United States imports from the world's number two economy. Since July, China and the USA have imposed tariffs on half the annual imports from each other, followed by heated rhetoric and sabre rattling in the South China Sea.
Some analysts and officials have raised the possibility that the two presidents could agree to a ceasefire of sorts at the G-20.
The U.S. tariff rate on $200 billion in Chinese goods is set to increase to 25 percent from 10 percent on January 1. USA vice president Mike Pence, filling in for Trump at the APEC meeting, gave no quarter.
However, Ross said those talks would serve as a framework to resolving the dispute.
However, the chasm between the two sides on issues such as Chinese industrial policy and intellectual property theft remained vast and any post-G20 negotiations were likely to be hard, he said.
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Hawks in the administration and some in the US business community also remain concerned that Xi may draw the USA president into a protracted negotiation.
Maybe President Trump had found Navarro's ravings useful at an earlier stage of his negotiating strategy, but not now.
Gao gave no details of the talks or of which officials were conducting them. One source briefed on the offer said it was just a "rehash" of previous offers China had made.
Given that this is an unprecedented event of the face-to-face meeting between the two Presidents in the midst of the series of tariffs exchanges, the outcome could be anybody's guess.
Others, such as economic adviser Larry Kudlow, want to see reforms but have pressed for a deal to avoid further disruption to trade between the world's two largest economies.
But expectations for the two countries to break the impasse rose after the November 1 telephone discussion during which Xi and Trump had "a long and very good conversation" about trade, according to a Trump tweet.
"So China's never been put in this position, and I don't want to put them in a bad position".
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