You won’t read this in the mainstream press.
But US President Donald Trump has China on the ropes.
Sure, Chinese President Xi Jinping is putting on a brave face, responding with retaliatory tariffs. It’s important for him not to be seen caving in to US demands on amending China’s unfair trade practices.
But as Trump explains, trade talks with China have not collapsed. Trump called the widening US–China tariff war ‘a little squabble’. But at the same time he stuck to his guns by ordering his administration to ready 25% duties on all remaining Chinese imports.
China’s broken the deal, says Trump
According to RAW, Trump told reporters he still has an ‘extraordinary’ relationship with Xi Jinping.
‘We have a dialogue going. It will always continue,’ Trump said.
‘But we made a deal with China … We had a deal that was very close but then they broke it. They really did.
‘We’re having a little squabble with China because we’ve been treated very unfairly for many, many decades.’
This is in reference to complaints about China’s poor intellectual property and subsidy practices, which is causing the US to hold heir defences up, raising costs and disrupting supply chains between the two largest economies and across the globe.
Stocks plummeted on Monday on the back of Trump’s tariff order late last Friday. But these reassuring words from Trump have helped the market regain upward momentum.
Trump has farmers’ backs
Trump has recently tweeted that the US will strike a deal with China ‘when the time is right… It will all happen, and much faster than people think!’
He also insisted this eventual deal, which ‘much be a great deal for the United States or it just doesn’t make sense’ will alleviate the pressure these trade tensions have placed on US farmers.
‘Our great Patriot Farmers will be one of the biggest beneficiaries of what is happening now. Hopefully China will do us the honor of continuing to buy our great farm product, the best, but if not your Country will be making up the difference based on a very high China buy…
‘This money will come from the massive Tariffs being paid to the United States for allowing China, and others, to do business with us. The Farmers have been “forgotten” for many years. Their time is now!’
Trump declared earlier this week that his administrations aims to put around US$15 billion towards the farmers, following a similar US$12 billion farmers’ aid plan last year.
Is this the winning move?
Some members of congress — who were once supportive of Trump’s unwavering resolve against China — now believe the president is simply escalating tariffs with no exit strategy.
In an interview with MSNBC this week, Democratic senator Chris Coons — who is clearly no fan of Trump — said:
‘Let’s be blunt: it’s a tax on the American consumer and the American manufacturer … who’s paying about $1.4 billion a month in new tariffs.’
But Trump is sure his tactics will pay off, as he tweeted:
‘China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing. If the Federal Reserve ever did a “match,” it would be game over, we win! In any event, China wants a deal!’
China’s foreign ministry spokesman Geng Shuang told a daily news briefing that a future deal ‘hinges upon further consultations between the two sides’.
So once again, we’ll have to wait and see what happens.
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