WASHINGTON (Reuters) – U.S. President Donald Trump characterized his recent conversation with Chinese President Xi Jinping as amicable, expressing optimism about the potential for a trade agreement with China.
WHY IT MATTERS
The leaders of the two largest global economies discussed various critical topics, including TikTok, trade relations, and the situation in Taiwan, during a phone call prior to Trump’s inauguration on Monday.
Since assuming office, Trump has mentioned implementing a 10% punitive tariff on Chinese imports, citing concerns over fentanyl trafficking from China to the U.S. through Mexico and Canada. Nevertheless, he refrained from immediately enacting tariffs, contrary to his campaign promises. Additionally, Trump has indicated the possibility of tariffs against other regions, including the European Union, Mexico, and Canada.
KEY QUOTES
“It went fine. It was a good, friendly conversation,” Trump shared regarding his dialogue with Xi during an interview with Fox News that aired Thursday evening.
When asked about the likelihood of reaching a fair trade agreement with China, he asserted, “I can do that.” Trump expressed a preference to avoid tariffs, labeling them as a “tremendous power.” He added, “But we have one very big power over China, and that’s tariffs, and they don’t want them. I’d rather not have to use it, but it’s a tremendous power over China.”
BACKGROUND
The U.S. and China are currently facing a multitude of diplomatic and economic challenges, including escalating technological and military competition, intense trade conflicts, and concerns from Washington regarding the ownership of TikTok, a popular social media platform owned by the Chinese company ByteDance.
