Trump to speak with China’s President Xi after raising tariffs: White House
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US President Donald Trump looks on as he signs an executive order in the Oval Office at the White House.
PHOTO: REUTERS
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WASHINGTON - US President Donald Trump will speak with Chinese President Xi Jinping as soon as this week, his spokesperson said, setting up a major diplomatic exchange as the world’s two largest economies seek a deal that could avert a broader trade war.
Mr Trump on Feb 1 ordered sweeping tariffs on goods from Mexico, Canada and China, as part of demands they stanch the flow of illegal fentanyl, a leading cause of drug overdoses in the United States.
Mr Trump backed away from his threat to impose steep tariffs on Mexico and Canada on Feb 3, but US tariffs on China were still due to take effect within hours.
The call will be the first known talks between Mr Trump and Mr Xi since the American president took office on Jan 20. They previously spoke before Mr Trump’s inauguration.
“It’ll happen in the next couple of days,” White House press secretary Karoline Leavitt said of the latest call.
On Feb 3, the Republican president threatened to ramp up tariffs on China. He imposed a 10 per cent duty on all their goods on Feb 1 that are set to take effect on Feb 4.
Those tariffs stopped short of Mr Trump’s campaign promises for steeper tariffs of 60 per cent on Chinese goods. On Feb 3, he described the initial tranche as an “opening salvo”.
The US has said China is the primary source of the precursor chemicals synthesized into fentanyl by drug cartels in Mexico. China says it has taken significant steps to crack down on the chemicals and touted measures to cut down on the illicit drug trade.
“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” said Mr Trump. “China will be dealt with,” he added.
China, which has long called tariffs counterproductive, offered relatively muted criticism of the tariffs
The country’s government appeared poised to seek a deal with Mr Trump that could delay or stop tariffs, according to a person familiar with the matter.
The US dollar hit a record high against the Chinese yuan traded offshore and was hovering near those levels on Feb 3. REUTERS
