U.S. President Donald Trump said on Tuesday he thinks there will be “a great deal” with China on trade, but warned he has billions of dollars’ worth of new tariffs ready to go if a deal isn’t possible.
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“I think that we will make a great deal with China and it has to be great, because they’ve drained our country,” Trump stated.
The U.S. and China are currently locked in a standoff over trade and market access. So far, Washington has imposed tariffs on US$200 billion of Chinese goods and Beijing retaliated with tariffs on US$60 billion of U.S. goods and stopped buying U.S. oil.
The current trade frictions between Washington and Beijing began in late July when the Trump administration imposed tariffs on Chinese goods such as agricultural products, cosmetics, technology, household appliances, textiles, supplies, machinery and vehicle spare parts.
The United States justified those trade barriers on China's trade alleged abuses, especially with regard to technology transfers, intellectual property and innovation. "We have been very clear and detailed regarding the specific changes China should undertake. Unfortunately, China has not changed its behavior – behavior that puts the future of the U.S. economy at risk", said then U.S. Trade Representative, Robert Lighthizer.
In the next G20 meeting to be held in Argentina in December, U.S. president’s meeting with his Chinese counterpart Xi Jinping is expected to ease the economic relations between their nations. If not, the U.S. new economic sanctions could include all imports from the Asian country not yet covered by tariffs.
Meanwhile, another barrier has been put in place. The U..S Commerce Department announced also on Tuesday restrictions on exports to state-backed Chinese company Fujian Jinhua, which makes semiconductors and will not be able to buy components from U.S. companies without a special license.
According to the Department, the ban was put in place because Fujian Jinhua poses a significant risk of becoming involved in activities that are contrary to the national security interests of the United States. “When a foreign company engages in activity contrary to our national security interests, we will take strong action to protect our national security.”, said U.S. Commerce Secretary Wilbur Ross.