Trump Wants to Raise Tariffs on China Even More If Xi Doesn’t Meet With Him at G20


JUNE 10, 2019

FILE PHOTO: U.S. and Chinese flags are seen in front of a U.S. dollar banknote featuring American founding father Benjamin Franklin and a China’s yuan banknote featuring late Chinese chairman Mao Zedong in this illustration picture taken May 20, 2019. REUTERS/Jason Lee/Illustration/File Photo

WASHINGTON, D.C. – 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.

Trump was asked in an interview with CNBC on Monday whether tariffs on about $300 billion in Chinese goods would be enacted immediately if there’s no meeting at the summit later this month.

“Yes, it would,” he answered. “I think he will go and I think we’re scheduled to have a meeting. I think he’ll go, and I have a great relationship with him. He’s actually an incredible guy, he’s a great man. He’s very strong, very smart, but he’s for China and I’m for the United States.”

Trade talks with China hit an impasse last month after the president accused Beijing of reneging on provisions of a tentative agreement. The two countries have since escalated their trade war.

“China is going to make a deal because they’re going to have to make a deal,” Trump said Monday.

Huawei, trade

Trump again suggested that an eventual trade deal could involve Huawei Technologies Co. The Trump administration is campaigning to block the company from emerging 5G telecommunications networks around the world and has moved to cut off Huawei from U.S. suppliers, citing national security concerns.

“I do see it as a threat,” he said Monday. “At the same time it could be very well that we do something with respect to Huawei as part of our trade negotiation with China. China very much wants to make a deal. They want to make a deal much more than I do, but we’ll see what happens.”

When asked whether U.S. actions against Huawei could set the U.S. back on 5G, Trump said “No.”

The U.S. is “actually going to be leading very shortly. You know, we’re leading in everything.” he said. Of China, he said: “As great as they are — and they are great — they don’t have near the capability of our geniuses in Silicon Valley that walk around in undershirts and they’re worth $2 billion.”

But by consistently linking the company to trade talks, Trump has suggested his aim is to stunt China’s growth as an economic rival to the U.S.

“Huawei is very powerful, very strong,” he said in the interview. He said that he wants China to do well, but that “I don’t want them to do as well as us.”

Trump’s reversal on a threat to impose new tariffs on Mexico over migration from Central America lifted the mood at the G20 finance ministers’ meeting in Fukuoka, Japan, over the weekend. But the U.S. delegation left without any significant breakthrough on China. Trump is scheduled to meet both Xi and Russian President Vladimir Putin at the G20 leaders’ summit in Osaka.

Of the tentative meeting with Xi, Trump said: “We’re expected to meet and if we do that’s fine, and if we don’t — look, from our standpoint the best deal we can have is 25% on $600 billion.”

Trump added: “If we don’t have a deal and don’t make a deal, we’ll be raising the tariffs, putting tariffs on more than — we only tax 35% to 40% of what they said then they had another 60% that’ll be taxed.”

Mexico secret

Trump meanwhile again hinted that part of the deal he struck with Mexico is not yet public.

He has claimed that the country agreed to purchase large amounts of U.S. agricultural products as part of the agreement, but Mexican officials say there is no such provision. Trump said on CNBC that the U.S. purposely isn’t discussing one of the aspects of the agreement yet, claiming that it is another “very powerful tool” for the U.S.

He tweeted earlier on Monday that “we have fully signed and documented another very important part of the Immigration and Security deal with Mexico, one that the U.S. has been asking about getting for many years. It will be revealed in the not too distant future and will need a vote by Mexico’s Legislative body!”

Courtesy/Source: Fortune