US President Donald Trump has suggested that his administration is open to the idea of a trade détente with China, purporting to reporters yesterday that both countries were engaged in direct talks “every day” on the issue of trade.
Trump claimed that the US was seeking a “fair deal with China,” pointing out that “everything’s active” when pressed on whether or not his government had held discussions with Beijing.
Beijing did not confirm any ongoing negotiations. Yesterday, China’s Ministry of Foreign Affairs laid out the terms for the conduct of trade negotiations with the US, pointing out that they would only take place once the US “ends its threats and coercion” and “conducts dialogue with China on the basis of equality, respect and mutual benefits.”
Trump did not provide a specific timetable on when he intends to implement tariff cuts on Chinese goods, noting that the reduction “depends on” Beijing. He said however that new duty rates with countries such as China could be announced within the next two to three weeks, based on the results of trade negotiations.
Last week, the US leader mentioned that he was confident that a US-Sino trade agreement could be struck “over the next three to four weeks.”
At a press conference on Tuesday, the president also struck a conciliatory tone, telling reporters that he does not intend to play “hardball” with Beijing, and expects both sides to “be very nice” to each other.
During the same presser, the US president acknowledged that Washington’s 145 percent tariffs against Chinese products are “very high” and claimed that they would eventually be cut “substantially,” although he added that “it won’t be zero.”
[See more: Did the US just blink in the trade war? Bessent hints at easing China trade tensions]
The comments came as US Treasury Secretary Scott Bessent admitted to investors at a closed-door meeting that Washington’s tariffs against China were not sustainable.
Analysts have interpreted Trump’s comments as a sign of American weakness.
Chen Zhiwu, a chair professor of finance at the University of Hong Kong, told the South China Morning Post: “The more he talks like this, the more it shows how anxious the US side is. Trump and his team are under pressure, but China isn’t showing any signs of impatience.”
Chen added: “From China’s side, I think they’ll just take a look and wait for a bit. The more Trump shows his anxiety, the more it tells China there’s no need to panic or rush. In fact, it may make them feel even less pressure to accelerate anything,” Chen said.
Introduced on 2 April, Trump’s sweeping tariffs covers 185 countries and locations. The US leader has currently placed a 90 day pause for both affected parties, with the exception of China, which remains the main target of Washington’s geopolitical and trade maneuvering.
As a result of the tariffs, the International Monetary Fund (IMF) has cut its original 3.3 percent growth forecast for the world economy to 2.8 percent.
