Former U.S. President Donald Trump has indicated that a fresh trade agreement with China could be possible, suggesting he is open to de-escalating tensions between Washington and Beijing.
“It’s possible, it’s possible,” Trump said to reporters aboard Air Force One on February 19 when asked whether he would consider negotiating a new deal with China.
However, he did not provide details on what such an agreement might entail, and any potential deal would likely face significant challenges—some of which stem from his own policies.
Trump has intensified pressure on China by imposing an additional 10% tariff on all Chinese imports, citing unfair trade practices and Beijing’s failure to curb the flow of fentanyl into the U.S. Despite this, he spoke positively about Chinese President Xi Jinping but did not confirm whether they would hold direct discussions.
“There’s a little bit of competitiveness, but I would say my relationship with President Xi is a great one,” Trump stated.
Following his comments, the Chinese yuan gained 0.2% in offshore trading after three consecutive days of losses, while the onshore yuan rose by 0.1%.
In January 2020, Trump brokered what was described as an initial trade agreement with China. Under the deal, Beijing committed to addressing intellectual property theft, increasing purchases of American goods by $200 billion over the following year, and reducing some trade barriers for U.S. exports.
However, just weeks later, the relationship was disrupted by the global spread of the coronavirus, which Trump attributed to China.
“They had about $50 billion worth of our product, and we were making them buy it. The problem is that Biden didn’t push them to stick to the deal,” Trump said, referring to his successor, Joe Biden.
Source: Bloomberg
