United States President Donald Trump announced that he plans to keep tariffs on China in place till he is sure that Beijing will comply with any trade deal. This announcement has refuted expectations that the two of the world’s largest economies will agree to roll back duties as a part of their truce in their trade war.
Trump told reporters that the U.S. is not considering removing the tariffs at the moment. He plans to leave them in place for a long period of time till the United States is sure about the deal with China and that China sticks to the deal. While talking to reporters at the White House on Wednesday, Trump also mentioned that China has had trouble sticking to deals in the past.
The president’s comments have dimmed the hopes about the ongoing round-the-clock negotiations between the United States, and China which could result in removing the $360 billion in tariffs both the countries have placed on each other’s imports. Beijing has been pushing the Trump administration to stop the tariffs as part of the final deal.
U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin plan to visit China on March 28 according to a Ministry of Commerce spokesperson on Thursday. The Chinese Vice Premier Liu will be traveling to the United States in April. The spokesperson did not have anything further to say when asked about Trump’s comments about the tariffs being in place even after a deal is in place.
U.S. officials are worried that Beijing is putting aside a few of the American demands during the trade talks negotiations. Chinese officials have changed their stance after saying yes to the changes in the intellectual property policies and still not receiving any assurances from the U.S. administration that the U.S. imposed tariffs on their exports will be lifted.
Despite the comments he made about the tariffs, Donald Trump has said that the deal seems to be coming along well. He also added the top U.S. negotiators who will be leaving for China for further talks on an agreement this weekend.
According to Shane Oliver, the head of the investment strategy at AMP Capital Investors Ltd., Trump is trying not to give away his leverage. He doesn’t want to risk rising unemployment rates and a bear market in shares to ruin his chances for re-election next year. Oliver still believes that a deal remains highly likely as it is in the interest of both countries.