Published: Mon, June 10, 2019
Worldwide | By Isabel Fisher

Trump believes China will make trade deal, but tariffs ready

Trump believes China will make trade deal, but tariffs ready

President Donald Trump threatened to raise tariffs on China again if President Xi Jinping doesn't meet with him at the upcoming Group of 20 summit in Japan. When asked if a fresh round of USA tariffs would go into effect if the Chinese leader was not at the meeting, Trump said, "Yes".

In a wide-ranging interview with CNBC, Trump also said disputes over Chinese tech giant Huawei Technologies could be addressed as part of any United States trade deal with China.

China's foreign ministry said on Monday that China is open to more trade talks with Washington but has nothing to announce about a possible meeting.

The escalating trade war between the world's two largest economies has unnerved financial markets with worries that it could further disrupt global manufacturing and supply chains and push an already slowing global economy into recession. Trump appeared to have called in response to the U.S. Chamber of Commerce, which had criticized Trump for using the threat of tariffs to force Mexico to do more to halt the flow of migrants across the U.S. southern border. You'd have auto plants going up all over the country, and there would be no tariff.

"The head of the Fed in China is President Xi", Trump told CNBC television in a telephone interview Monday.

"With Mexico, what's going to happen is all the companies would immediately move into the United States".

"I guess he's not so brilliant", Trump said.

Trump has said the Fed should not have raised interest rates last year and has pushed them to cut interest rates this year, among other things. "Because now they respect us, they didn't even respect us", Trump said. Now "they'll never catch us". He attacked Facebook and hinted that it and other US technology companies could face antitrust scrutiny from the Justice Department.

With the Mexico standoff temporarily resolved, much of the focus will now shift back to Trump's approach with China.

The US Trade Representative office has launched the process to impose the huge new duties, with a hearing scheduled for June 17 - but Trump has said he has yet to decide whether he will ultimately impose the levies. But the USA delegation left without any significant breakthrough on China.

When asked whether US actions against Huawei could set the USA back on 5G, Trump said "No". But the fact that Chinese leaders won't even confirm a meeting between Xi and Trump in a few weeks reflects a level of mistrust between both sides.

President Donald Trump said Monday the United States central bank has been "very, very destructive" to the economy by raising interest rates too quickly.

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