Mr. Trump: The US can reach a new trade agreement with China

On February 19, on Air Force, when asked about the possibility of reaching a new trade agreement with China, US President Donald Trump confirmed “this is feasible”. However, he did not give more details about the new agreement. This is also forecasted to have many major barriers.

Analysts believe that a dialogue between Mr. Trump and Chinese President Xi Jinping will be necessary to loosen or postpone the import tax. On the plane, the US president also mentioned Xi. He praised the Chinese leader, but did not mention the possibility or when both could talk directly. “There is a bit of competition, but the relationship between me and President Xi is great,” he said.

The yuan price in the international market increased by 0.2% after Mr. Trump’s comments. This currency has lost 3 consecutive sessions. The yuan price in Shanghai also increased by 0.1%.

Earlier this month, the US president increased pressure on China when it imposed an additional 10% tax on all imported goods from the country. He said that Beijing had unfair commercial activities and did not make enough efforts to prevent Fentanyl smuggling into the United States.

In response, China also immediately imposed import taxes on US goods from February 10, at 10-15%. A series of important metals such as Tungsten, Tellurium, Ruthenium, Molybdenum were squeezed for export “to protect national security”. Google was investigated against exclusive and Beijing also brought two other US companies on the black list.

This is not the first time the US – China tensions. During the first term, Mr. Trump launched a 2 -year trade war with China, imposing 25% tax with about 300 billion USD of the country’s goods. Beijing also retaliated with the same policy, and stopped buying many American agricultural products. This causes global supply chain disturbance, and causes damage to the world economy.

To end the trade war, by 2020, China and the US signed a trade agreement in phase 1. Accordingly, Beijing approved to buy an additional US $ 200 billion of US goods each year and reduce trade barriers for Washington. However, this plan was delayed by pandemic. The bilateral relations have also worsened since then when Mr. Trump wanted China to compensate for damage for Covid-19.

“They only buy about 50 billion USD of our goods. The problem is that the Biden government does not urge them to comply with the commitment,” Mr. Trump said.