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US president expresses confidence about possible deal with Beijing, while Xi Jinping issues warning about consequences of trade war. China increases tariffs to 125% on US goods
The trade war between the United States and China continues unabated, with new developments that are fueling the confrontation between the two economic powers. U.S. President Donald Trump, aboard Air Force One bound for Florida, reiterated his optimistic view about the possibility of reaching an agreement with Beijing to end the tariff battle. In fact, Trump told reporters that he was “optimistic,” as the White House had already confirmed, stressing that “I believe we will get to something positive.” He also recalled his good relationship with Chinese President Xi Jinping, suggesting that dialogue could lead to a mutually beneficial solution.
In addition to China, Trump explained that the U.S. is negotiating with “many countries” on tariffs, highlighting that the U.S. is in a “very good position.” The president also expressed confidence about the future of the dollar, saying that the U.S. currency will “always remain the reserve currency.” Trump then made a point about the bond market, reassuring that the “market is doing well” and that any problems have been “resolved very quickly.” For Trump, the goal remains to ensure a strong economic position for the country.
However, Beijing’s response was not long in coming, with China announcing an increase in tariffs on U.S. goods from 84 percent to 125 percent, in a further escalation of the trade war. The countermeasure will go into effect today, after the White House set a 145% tariff on all Chinese imports, up from the 125% originally indicated. Beijing’s move follows recent statements by President Xi Jinping, who was keen to make it clear that China “is not afraid” of the tariff war, recalling that “there are no winners in trade wars” and that attempting to “go against the world” will inevitably lead to “self-isolation.”
Xi also stressed China’s position of self-reliance, calling the country’s development based on “hard work” rather than “handouts” from others. The Chinese president firmly stated that China will remain “confident, focused” and will continue to manage its own affairs regardless of developments in the international situation. In addition, Xi called on the European Union to join China in countering Trump’s trade “bullying,” arguing that both should “safeguard economic globalization and resist any unilateral coercion.”
Tensions are mounting as China prepares for further measures should the United States increase its tariffs further. China’s Ministry of Commerce has said that the current level of tariffs is now unsustainable for the Chinese market and that, should Washington persist with its tariffs, Beijing will respond with further countermeasures. According to China, the United States is responsible for the global economic “turmoil” caused by its aggressive trade policy, which it has accused of violating international rules and threatening the global economic balance.
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