US President Suggests Fresh Agreement Could Be Reached Despite Existing Trade Frictions
US President Donald Trump has expressed optimism that a new trade agreement with China could be reached, despite the ongoing tensions between Washington and Beijing. On February 19, while aboard Air Force One, President Trump confirmed that a fresh trade deal was “possible,” but refrained from providing specific details about the potential terms. He acknowledged that any such deal would face substantial challenges, some of which he has played a role in creating.
Trump has taken a firm stance on trade with China, imposing an additional 10 per cent tariff on all Chinese imports. The US leader has justified these tariffs by accusing China of unfair trade practices and its failure to address the illegal flow of fentanyl into the United States.
Despite the tense trade relationship, President Trump spoke highly of Chinese President Xi Jinping, calling their relationship “great,” although he did not specify when or if the two leaders would hold direct talks.
Trump’s comments were met with a slight rise in the value of the Chinese renminbi, which gained 0.2 per cent in offshore markets following the President’s remarks.
In January 2020, Trump announced an initial trade deal with China, which included commitments from Beijing to crack down on intellectual property theft, purchase an additional US$200 billion in American goods, and reduce certain trade barriers. However, the deal’s progress was quickly derailed by the global outbreak of the coronavirus, which Trump has repeatedly blamed on China.
Reflecting on the situation, Trump remarked that under his administration, China had committed to purchasing US products, but added that his successor, Joe Biden, has failed to ensure China’s adherence to the agreement.
