WASHINGTON DC: US President Donald Trump said on Monday that China will make a deal with the United States “because they’re going to have to.” China has lost trillions of dollars since he was elected president, added Trump.
In a telephone interview broadcast on CNBC Trump said that additional tariffs on Chinese goods will go into effect immediately if China’s President Xi Jinping does not attend the upcoming G20 meeting.
Trump defended his threats to slap tariffs on Mexico and China, which he said put the US “at a tremendous competitive advantage.”
“The China deal is going to work out. You know why? Because of tariffs … Right now, China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don’t want to pay the tariffs.”
China is “going to make a deal because they’re going to have to make a deal,” Trump said.
The president criticized the US Federal Reserve for raising interest rates too quickly and giving the Chinese an upper hand in trade negotiations.
“They devalue their currency, they have for years: It’s put them at a tremendous competitive advantage. And we don’t have that advantage because we have a Fed that doesn’t lower interest rates,” Trump told CNBC. “We should be entitled to have a fair playing field, but even without a fair playing field — because our Fed is very, very disruptive to us — even without a fair playing field we are winning.”
The US president added: “Don’t forget: the head of the Fed in China is President Xi … he can do whatever he wants.”
When asked if he viewed Chinese telecom giant Huawei as a national security threat or leverage in trade negotiations with China, Trump said it could be both.
“I do see it as a threat,” he said about Huawei. “At the same time, it could be very well that we do something with respect to Huawei as part of our trade negotiations with China.”