US President Donald Trump said Wednesday that a prospective deal with China to recalibrate the trade relationship will be “fair” as the world’s top two economies continue to be locked in a simmering trade war.
“We are going to have a fair deal with China. It’s going to be fair,” Trump said at the White House, claiming the relationship with China “got out of control” under his predecessors.
The comments continue the president’s upbeat streak after saying Tuesday that negotiators would be “very nice” with Beijing.
“I’m not gonna say ‘Oh, I’m gonna play hardball with China, I’m gonna play hardball with you President Xi (Jinping). No, no. We’re going to be very nice, they’re gonna be very nice, and we’ll see what happens. But ultimately, they have to make a deal because otherwise they’re not going to be able to deal in the United States,” he said.
“So, we want them involved, but they have to, and other countries have to make a deal, and if they don’t make a deal, we’ll set the deal,” he added.
Asked by a reporter Wednesday if Washington is in “active” negotiations with Beijing, Trump said, “Actively. Everything’s active. Everybody wants to be a part of what we’re doing.”
“They know that they can’t get away with it any longer, but they’re still going to do fine, and we’re going to have a country that you can be proud of, not a laughing stock all over the world for many years,” he said.
Earlier this month, Trump increased his “reciprocal tariffs” on China from 84% to 125% as Washington and Beijing continued to escalate a tit-for-tat trade war. His “reciprocal” rate comes on top of a 20% tariff he imposed earlier this year related to the trafficking of illicit fentanyl, meaning the true tariff rate on China has now hit 145% for most goods.
But some imports are being hit at an even higher rate due to additional duties, known as Section 301 tariffs, that seek to address unfair trade practices. The penalties range from roughly 7.5% to 100%, meaning some Chinese goods, including electric vehicles and syringes, now face a US tariff of 245%.
Trump said Tuesday the 145% tariff rate on most Chinese goods will be reduced “substantially,” but “it won’t be zero.”