“We’re going to win either way. We either win by getting a deal or we win by not getting a deal,” Trump said during a visit to a business roundtable in Burnsville, Minnesota, Reuters reported.
The world’s two biggest economies are nine months into a trade war that has cost billions of dollars, roiled financial markets and upended supply chains.
Trump’s administration has slapped tariffs on $250 billion worth of imports of Chinese goods to press demands for an end to policies that Washington says hurt US companies competing with Chinese firms. China responded with its own tit-for-tat tariffs on US goods.
Trump’s Treasury secretary, Steven Mnuchin, said earlier on Monday that trade negotiators are making a lot of progress. He told Fox Business Network there is more work to do, however, including enforcement.
Chinese mulling on tariffs shift
China is considering a US request to shift some tariffs on key agricultural goods to other products so the Trump administration can sell any eventual trade deal as a win for farmers ahead of the 2020 election, people familiar with the situation said, Bloomberg reported.
The step would involve China moving retaliatory duties it imposed starting last July on $50 billion worth of US goods to non-agricultural imports, said the people, who asked not to be identified because the discussions were private. The shift is because the US doesn’t intend to lift its own duties on $50 billion of Chinese imports even if an agreement to resolve the trade war between the two nations is reached, one the people said.
Another person said China would consider shifting the tariffs to make it easier to meet a proposal to buy an additional $30 billion a year more of US agricultural goods on top of pre-trade war levels as part of a final deal. Last July, China had levied punitive tariffs on American goods including soy, corn, wheat, cotton, rice, beef, pork and poultry in response to US duties.
A spokesperson for the US Trade Representative didn’t immediately respond to a request for comment. China’s Commerce Ministry didn’t respond to faxed questions.
The bartering shows that both sides are taking political considerations into account as negotiations drag on to end the trade war, which has rattled financial markets for months. An outcome that completely removes punitive tariffs looks increasingly unlikely as Trump looks to hone his campaign message and continues to threaten the European Union, India and other countries with trade actions.
The people didn’t specify which other goods would receive higher tariffs instead of agricultural products. Other top imports included aircraft engines and parts, semiconductors, passenger cars and chemicals.
China also may take action on non-tariff barriers that have affected agricultural goods.
Over the weekend, Treasury Secretary Steven Mnuchin said the US and China were “hopefully getting very close to the final round” and discussing whether to hold more in-person trade talks. He also said the US is open to facing “repercussions” if it doesn’t live up to its commitments in a potential trade deal, a sign that the two sides are edging closer to an accord.
Under the proposed agreement, China would commit by 2025 to buy more US commodities, including soybeans and energy products, and allow 100 percent foreign ownership for US companies operating in China as a binding pledge that can trigger retaliation from the US if left unfulfilled, people familiar with the situation said earlier this month.