The tension between the world’s two largest economies looks unlikely to de-escalate anytime soon as U.S. President Donald Trump appears to view continuing tension with China as good for him politically.
For more on this and other news around the world, let’s turn to our Hong Yoo…
Tell us Trump’s latest moves on trade with China.
Well, Mark, the Trump administration is preparing a new list of 300 billion dollars worth of Chinese imports that would be hit with tariffs of up to 25 percent.
But Trump says trade talks with China have not collapsed and called the escalating U.S.-China tariff war “a little squabble”.
President Trump made the remarks to reporters at the White House on Tuesday.
“We have a very good dialogue. We have a dialogue going. It will always continue. But we made a deal with China. It was a deal that was a very good deal. That had to be a good deal, otherwise we’re not making it, because we’ve been down so low in trade, and other presidents should have done this a long time ago.”
He showed confidence in getting a good deal for the U.S. as he tweeted “China will be pumping money into their system and probably reducing interest rates, as always, in order to make up for the business they are, and will be, losing.”
Although negotiations toward resolving the U.S.-China trade war stalled last week, Trump and his Chinese counterpart Xi Jinping, could resume the talks when they meet at a G20 summit in Japan in late June.
Some economists expect Washington and Beijing will eventually reach a trade agreement as their economies are deeply intertwined in ways that make the intensifying trade war unsustainable.
But some worry the damage to their relationship may be hard to undo.