Trump Signals Breakthrough: Confident of Striking Major Trade Deal with China

Image Source: Business Today

President Donald Trump renewed optimism regarding a trade deal with China, saying that talks are moving ahead despite official denials in Beijing. The moves come amidst a backdrop of rising tariffs, with Trump hinting at eventual rollbacks as he continues to play hardball in hopes of eliciting concessions.

Major Developments:

Tariff Rollback Indicators: Trump said on April 23 that China's 145% tariffs would "come down considerably," but not to zero, and Treasury Secretary Scott Bessent described existing rates as "unsustainable." These comments came after Trump's April 18 declaration that China is "prepared to sit down for negotiations" and that a "great deal" is possible.

Disputed Claims: China's Commerce Ministry maintains that no official talks are taking place and calls for the U.S. to eliminate unilateral tariffs. But Trump denied this on April 25, saying talks were held "this morning" and that China has "reached out multiple times.".

Mutual Tariff Threats: The U.S. imposed a 104% tariff on Chinese products after Beijing retaliated against Trump's April 2 tariffs. Trump threatened an extra 50% charge if China fails to roll back its measures, while China pledged to "fight to the end".

Negotiation Posturing: The White House asserted Trump would be "incredibly gracious" if China sets up negotiations but asserted he will always put U.S. interests first. Beijing, in the meantime, calls out the U.S. as "blackmailing" and demands mutual respect.

What's Next: The U.S. has given a 90-day timeframe for trade partners around the world-except China-to negotiate agreements, putting pressure on Beijing. Observers comment that Trump's mercurial style, oscillating between tariff threats and deal-making fulminations, leaves scope for sudden policy turns.

Sources: Al Jazeera, CNBC, CNN, Bloomberg, China Briefing, Times of India, PTC News.