Trump Optimistic About Trade Deal with China

By Kanishka Singh

WASHINGTON (Reuters) – U.S. President Donald Trump described his recent conversation with Chinese President Xi Jinping as friendly and expressed optimism about reaching a trade deal with China.

Why It’s Important

The leaders of the world’s two largest economies discussed critical topics such as TikTok, trade, and Taiwan during a phone call prior to Trump taking office on Monday.

Since assuming office, Trump has indicated plans for a 10% punitive tariff on Chinese imports, citing concerns over fentanyl shipments from China to the U.S. through Mexico and Canada. However, he has not immediately implemented such tariffs, as was promised during his election campaign. Trump has also threatened tariffs against the European Union, Mexico, and Canada.

Key Quotes

> “It went fine. It was a good, friendly conversation,” Trump remarked about his call with Xi during an interview with Fox News on Thursday evening.

> “I can do that,” he responded when asked if he could strike a fair trade deal with China.

Trump expressed a preference not to impose tariffs on China, yet acknowledged their significance, stating, “But we have one very big power over China, and that’s tariffs, and they don’t want them, and I’d rather not have to use it, but it’s a tremendous power over China.”

Context

U.S.-China relations are strained by various diplomatic and economic disagreements, including growing technological and military competition, contentious trade issues, and concerns surrounding the ownership of TikTok, owned by the Chinese company ByteDance.