Last week, in retaliation to the tariff hike on American imports to China, Trump ordered American companies to stop buying goods from China and look for new dealers. This just showed how fast the trade tensions are growing between the United States and China. This morning, however, Trump announced that Chinese officials reached out to him in a bid to start negotiations again.
China Reaches Out To Trump to Resume Negotiations
In Franch, where the G-7 meeting is currently taking place, Trump told reporters that China has called him twice regarding restarting negotiations. However, he did not tell reporters if he spoke directly with the President of China or not. In his words; “We’ve received two calls. Very good and productive calls. They are ready for business.”
He subsequently said that he respects China for reaching out to him to resolve the trade war and he believes they are not ready to make a deal. In his words; “I respect China greatly for trying to make a deal to ease up the tensions caused by the trade war. I respect President Xi.”
The news about China reaching out to Trump came just in time. Last week, when China announced that it was increasing tariffs on American goods worth $75 billion, the American stock market took a hit. Almost every major asset was trading downward. In response to this move, Trump said that he would raise tariffs on Chinese goods worth $250 billion by 5%. Keep in mind that there was an existing 25% tariff on these goods. He also said that the new 10% tariff on goods worth $300 billion would now be increased to 15%.
Hopefully, the two countries will be able to reach a mutually beneficial agreement before the first week of September when some of these tariffs will become effective. Trump said that he would give more details about what happened during his press conference later today.