Trump says new China trade deal is ‘possible’ despite tensions

WASHINGTON – US President Donald Trump has said it is possible to reach a fresh trade deal with China, signalling he is open to heading off a brewing trade fight between Washington and Beijing.

“It’s possible, it’s possible,” Mr Trump told reporters on Air Force One on Feb 19, when asked if he will make a new agreement with China. 

Mr Trump did not describe the parameters of a potential deal, and any agreement would face significant obstacles – some of the President’s own making.

Mr Trump has ratcheted up pressure on China with

an additional 10 per cent tariff on all imports

from the country, punishment for what he said are unfair Chinese trade practices and failure to stop the flow of fentanyl into the US.

The President, nonetheless, heaped praise on Chinese President Xi Jinping, but once again did not say if or when they will speak directly. 

“There’s a little bit of competitiveness, but the relationship I have with President Xi is, I would say, a great one,” Mr Trump said. 

The Chinese renminbi climbed on Mr Trump’s comments, gaining 0.2 per cent in the offshore market after three straight sessions of drops. The onshore renminbi rose 0.1 per cent.

Mr Trump brokered what was billed as an initial trade deal with China in January 2020, under which Beijing promised to crack down on theft of US trade secrets and technology, pledged to purchase an additional US$200 billion (S$267.8 billion) in American products by the following year, and lower some trade barriers for US exports.

But the relationship was derailed just weeks later when the coronavirus pandemic swept the globe, which Mr Trump blamed on China. 

“They had about US$50 billion worth of our product, and we were making them buy it. The problem is that Biden didn’t push them to adhere to it,” Mr Trump said, referring to his predecessor Joe Biden. BLOOMBERG