China warned of ‘substantial’ trade war tariff increases by US President Donald Trump if deal is not reached

Jodi Xu Klein

pUS President Donald Trump lambasted China’s trade practices and warned of “substantial” tariff increases in a speech in New York on Tuesday, despite saying that “a significant phase one trade deal could happen soon”./p

pEven though suggesting the deal is to be signed, Trump said “we will only accept the deal if it’s good for the United States and our workers at our great companies”./p

p“I tell it to everybody. If we don’t make a deal, we will substantially raise those tariffs. They’ll be raised very substantially. That’s going to be true for every other country that will mistreat us too. There are a few that haven’t mistreated us,” he said./p

div class="blockquote-quote"I tell it to everybody. If we don’t make a deal, we will substantially raise those tariffs. They’ll be raised very substantially/div

div class="blockquote-author"Donald Trump/div

pHis remarks, at an event hosted by the Economic Club of New York, came as the world looks to see if the two largest economies are able to agree on a phase one deal that would begin to wind down the 17-month-long trade war./p

pChina “is having the worst year in more than half a century, their supply chains are cracking very badly and they are dying to make a deal,” Trump added. “But we are the ones that are deciding whether or not we want to make a deal.”/p

pAn interim agreement is expected to include a US pledge to scrap tariffs scheduled for December 15 on about US$156 billion worth of a href="https://www.scmp.com/economy/china-economy/article/3037399/california-ground-zero-us-china-relations-feels-pinch-trade" target="_self"Chinese imports,/a including mobile phones, laptop computers and toys. In his speech, Trump reiterated that the tariffs are “going to 15 per cent very soon” if a deal is not reached./p

p“Trump’s statements about a prospective trade deal in the near term were more measured” compared with when he announced a “substantial phase one deal” last month, said Anna Ashton, senior director of government relations at the US-China Business Council./p

div class="video-wrapper"

div class="video-wrapper"

iframe allowfullscreen="true" allowscriptaccess="always" class="c1" frameborder="0" width="560" height="315" scrolling="no" src="//www.youtube.com/embed/SVLrr31jyAo?wmode=transparentjqoemcache=UdCOWenablejsapi=1" data-video-source="SCMP" data-nid="3037006" data-youtube-id="SVLrr31jyAo"/iframe/div

/div

pSpeaking at the a href="https://www.scmp.com/news/china/politics/article/3032620/donald-trump-says-good-things-are-happening-china-trade-talks" target="_self"White House on October 11/a after a round of high-level talks, Trump said that US negotiators had reached a deal that would delay the implementation of more tariffs, and that he expected he and his Chinese counterpart, Xi Jinping, might sign the agreement when they met in mid-November at the a href="https://www.scmp.com/news/china/diplomacy/article/3035626/chiles-apec-gathering-cancelled-throwing-donald-trump-and-xi" target="_self"Asia-Pacific Economic Cooperation (Apec)/a summit in Chile./p

pBut even after the summit was cancelled because of domestic unrest in the host country, Ashton said on Tuesday, “the same incentives for the Trump administration to reach a deal remain.”/p

p span class="c1"“Securing agricultural purchases, in particular, almost certainly remains a high priority, since farmers have continued to bear an awful lot of pain as the trade war has dragged on,” she said./span/p

pAshton highlighted the difference between the mixed signals in Tuesday’s speech and a more enthusiastic Twitter post by Trump from October 31, which said: “The new location [to sign the agreement] will be announced soon. President Xi and President Trump will do signing!”/p

div class="blockquote-quote"I will not use the word cheated. I will not say the word cheated. But nobody’s cheated better than China, but I will not say that/div

div class="blockquote-author"Donald Trump/div

pThe US leader’s speech took place as US stock indices were trading at record highs, although global markets whipsawed last week after conflicting messages over whether part of the planned tariffs would be rolled back. And despite stock market gains, US economic growth has slowed to about 2 per cent annually./p

pOn Tuesday, while criticising China’s trade practices, Trump blamed previous US leaders for the situation./p

p“Before my election, Washington politicians stood by and did nothing while China ransacked our companies, stole our intellectual property, subsidised their industries at the expense of ours and dumped their products in a deliberate strategy to close our factories,” he said./p

p“Since China’s entrance into the World Trade Organisation in 2001, no one has manipulated numbers better or taken advantage of the US more. I will not use the word cheated. I will not say the word cheated. But nobody’s cheated better than China, but I will not say that. We’ll say that off the record, OK? … And I don’t blame China, by the way. I blame our leaders.”/p

pAli Wyne, a policy analyst with the RAND Corporation in Washington, said Trump’s remarks were consistent with his tactics throughout the trade conflict./p

div class="video-wrapper"

div class="video-wrapper"

iframe allowfullscreen="true" allowscriptaccess="always" class="c1" frameborder="0" width="560" height="315" scrolling="no" src="//www.youtube.com/embed/HVEApYkj9-M?wmode=transparentjqoemcache=UdCOWenablejsapi=1" data-video-source="SCMP" data-nid="3033021" data-youtube-id="HVEApYkj9-M"/iframe/div

/div

p“The mixed messages are in keeping with the president’s penchant for unpredictability, which, he often contends, enhances his negotiating leverage,” Wyne said./p

pThe Chinese foreign ministry said on Thursday that a href="https://www.scmp.com/economy/china-economy/article/3036746/china-and-us-agree-phased-rollback-extra-trade-war-tariffs" target="_self"China and the US/a had agreed to remove additional tariffs in stages once an interim deal is signed./p

pBoth sides are working to finalise details of the agreement, the foreign ministry said. Officials in the US and China would then decide how many of the duties would be scrapped in the first phase./p

pIn Washington, however, no official word about tariffs has come from the Office of the US Trade Representative or the White House. News outlets including Bloomberg cited anonymous US officials in reporting the rollbacks, but a href="https://www.scmp.com/news/world/united-states-canada/article/3037005/trump-says-he-has-not-agreed-roll-back-tariffs" target="_self"Trump denied/a such an agreement on Friday./p

pAsked by reporters at the White House if he would remove the punitive tariffs, Trump said: “They’d like to have a rollback. I haven’t agreed to anything.”/p

pimg title="US National Security Adviser Robert O’Brien with Chinese Premier Li Keqiang on the sidelines of the Asean Summit in Bangkok. Photo: AP" alt="US National Security Adviser Robert O’Brien with Chinese Premier Li Keqiang on the sidelines of the Asean Summit in Bangkok. Photo: AP" width="660" height="385" data-resolution="2" src="https://cdn.i-scmp.com/sites/default/files/d8/images/methode/2019/11/13/eab310f0-056f-11ea-a68f-66ebddf9f136_1320x770_113951.jpg" class="caption" //p

pAt the White House on Sunday, Trump said that if a deal was reached, it would be signed somewhere in the US, with the location of the signing now a central question following the cancellation of the Apec summit./p

p“First of all, I want to get the deal,” he said. “The meeting place, to me, is going to be very easy.”/p

pUS Commerce Secretary Wilbur Ross, who is not a key member in the US negotiating team, told Bloomberg that Iowa, Alaska, Hawaii and even locations in China were all possibilities./p

pIn talks with Ross and US National Security Adviser Robert O’Brien in Bangkok on Monday, Chinese Premier Li Keqiang said that China and the US must stabilise their relations and resolve their differences on the basis of mutual respect./p

pThe breakthrough in the talks came after China pledged to buy as much as US$50 billion worth of US agricultural products and open up its financial markets further to foreign investors./p

pbMore from South China Morning Post:/b/pullia href="https://www.scmp.com/news/world/united-states-canada/article/3037005/trump-says-he-has-not-agreed-roll-back-tariffs?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"Donald Trump denies agreeing to roll back trade war tariffs on China, despite earlier reports/a/lilia href="https://www.scmp.com/economy/china-economy/article/3036746/china-and-us-agree-phased-rollback-extra-trade-war-tariffs?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"China and US ‘agree to phased rollback’ of extra trade war tariffs/a/lilia href="https://www.scmp.com/news/china/article/3036316/china-pressing-donald-trump-remove-more-tariffs-ahead-phase-one-trade?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"China pressing Donald Trump to remove more tariffs ahead of ‘phase one’ trade deal signing/a/lilia href="https://www.scmp.com/economy/china-economy/article/3036843/china-exports-fall-again-worst-run-three-years-phase-one?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"China’s October exports may offer hint of ‘stabilisation’, but still ‘hard to be optimistic’ amid US trade war/a/lilia href="https://www.scmp.com/economy/china-economy/article/3037399/california-ground-zero-us-china-relations-feels-pinch-trade?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"California, ‘ground zero for US-China relations’, feels the pinch as trade war tariffs hit American port traffic/a/li/ulpThis article a href="https://www.scmp.com/news/china/diplomacy/article/3037458/donald-trump-takes-swipes-china-says-phase-one-trade-deal?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"China warned of ‘substantial’ trade war tariff increases by US President Donald Trump if deal is not reached/a first appeared on a href="https://www.scmp.com/?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"South China Morning Post/a/ppFor the latest news from the a href="https://www.scmp.com/?utm_source=Yahooutm_medium=partnerutm_campaign=contentexchange" target="_blank"South China Morning Post/a download our a href="https://go.onelink.me/3586748601?pid=3rdpartycontentexchange" target="_blank"mobile app/a. Copyright 2019./p