Trump Claims Xi Jinping ‘Called’ Him About Tariffs As China Denies Negotiations With US
US President Donald Trump and China's Xi discussed tariffs in an attempt to resolve the ongoing trade war.
US President Donald Trump said on Friday that he spoke with China's Xi about tariffs, reports Barron's, quoting an interview with the American leader published by TIME Magazine. Both the countries are locked in an escalating tit-for-tat trade battle triggered by Trump's new levies on Chinese goods.
China has denied that it is conducting trade negotiations with the United States, but Trump said he expects the two countries to reach an agreement in the next few weeks.
"There's a number at which they will feel comfortable," Trump told the magazine during an interview that took place on Tuesday. "But you can't let them make a trillion dollars on us."
The tariff blitz that Trump says is retaliation for the unfair trade practices has rattled the markets and has raised fears of a global recession.
China has exempted US imports from its 125% tariffs and is asking firms to identify the critical goods they need levy-free, reports Reuters. Beijing's exemptions—which business groups hope will extend to dozens of industries—pushed the U.S. dollar up slightly and lifted equity markets in Hong Kong and Japan.
“As a quid-pro-quo move, it could provide a potential way to de-escalate tensions," said Alfredo Montufar-Helu, a senior adviser to the Conference Board's China Center, a think tank.
China has still not communicated publicly on the exemptions.
According to a Friday statement, the Communist Party's elite decision-making body focused on efforts to maintain stability at home by supporting firms and workers most affected by tariffs. According to Reuters, the readout, which followed the Politburo's regular monthly meeting, showed that Beijing was also ready to hunker down and fight a trade war of attrition if needed to outlast Washington in enduring the pain from the breakdown of their relationship.
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