Trump Predicts 'Fantastic Deal' With China
President Donald Trump predicted he'll make a "fantastic deal" with China, and, when asked by the TV interviewer how he could be so confident, said, "I know what I'm doing. It's business." He said during his "tremendous" four-hour meeting with Chinese President Xi Jinping in Argentina, "everything was agreed on. Now if we get it down on paper, that'll be another story, but I think we will." He said the meeting was so tremendous because he's levied 25 percent tariffs on $50 billion in Chinese imports and is willing to levy tariffs on all Chinese imports to get the concessions he wants. "That would be devastating for China. They have now agreed to go buy soybeans, tremendous amounts of soybeans. You see that already happening," he said.
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He said the $11 billion in tariffs the U.S. is collecting is not causing inflation to rise, and that studies show Chinese producers are not able to pass on most of the cost to American buyers. He said the U.S. stock market has faltered because of trade concerns, but that this is the time to confront China, because the stock market and economy have been so strong. "The economy will get incredible when I make the deals with China, with Canada, with Mexico, when they all kick in," Trump predicted.
He said the progress happening during the 90-day tariff ceasefire is clear. "They just lowered the tariff on their cars from 40 percent to 15 percent," he said. China has not publicly announced the reduction, but it is expected. "It's not acceptable. Fifteen is still too high. But it's still a big move."
Trump touched on a variety of trade issues in the Fox TV interview on Dec. 13. He said that General Motors has displeased him by announcing plant closures in Michigan and Ohio, and said incredulously, "and they're going down to Mexico to make new cars?" He said the revisions to NAFTA will show that to be a mistake. "The new deal, the USMCA that I made, really makes it very uncomfortable for people to go out of the country, and it will be very uncomfortable for them."