President Trump has said that he has not agreed to roll back tariffs on goods from China, indicating that the trade war between the world’s two largest economies is still on.
After China and United States officials said on Thursday that both countries had agreed in a “phase one” trade deal to reduce tariffs on each other’s goods, many thought that the trade war was gradually coming to an end. Unfortunately, the United States president says that he has not consented to tariff rollbacks on Chinese goods.
Speaking to reporters at the White House, Mr. Trump said: China wants to get some kind of a rollback, not a complete rollback as they know that I won’t approve of it. I haven’t agreed to anything.” Trump revealed that the tariffs imposed on Chinese goods were generating billions of dollars for the U.S. He also added that China was more interested in making a deal than the U.S. “I’m elated right now. We are raking in billions of dollars,” the president said.
During the week, stocks had surged following optimism that the 16-month trade war between both economies would end soon. But Trump’s comment on Friday about tariff rollbacks has resulted in the fall of the U.S. stock. At the close of business, the dollar reportedly fell against the yen.
President Trump said that if the trade deal with China pulls through, all the signing and documentation will take place in the United States. China’s state-run Global Times newspaper editor, Hu Xijin, has said that Trump’s statement is coming as a surprise to the market. “It’s not a flat denial,” he said in a tweet. “However, one thing is sure, there will be no phase 1 deal if there’s no rollback of tariffs,” he added.
The tariffs imposed on Chinese goods is president Trump’s major weapon in the ongoing trade war between the U.S. and China. Trump’s administration hopes to bring about some major changes in the trade and industrial policies of China. Sometime in May, both countries were close to reaching a deal, but Beijing backed away from it, causing Trump to increase tariff rates.