President Trump Warns Xi, Get the Trade Deal Done or Suffer the Pain
$SPY, $SOY, $UNG
Tuesday, President Donald Trump held out the possibility of an extension of the 90-day trade truce with China warning he would revert to tariffs if the 2 sides do not resolve their differences.
President Trump said his team of trade advisers led by Trade Representative Robert Lighthizer will determine whether a “REAL deal” with China was possible.
“If it is, we will get it done,” President Trump Tweeted. “But if not remember, I am a Tariff Man.”
The threat of an escalating trade dispute between the world’s two largest economies has loomed large over financial markets and the global economy for much of the year and investors greeted the ceasefire agreed by Trump and Chinese President Xi Jinping over the weekend with relief.
The equity markets pulled back after Monday’s rally on Tuesday, retracing and testing the S&P 500’s (SPY) 200-Day MA consolidating the rally that begun on 23 November.
This President addressed a Key concerns by indicating he would not be opposed to extending the 90-day truce.
“The negotiations with China have already started. Unless extended, they will end 90 days from the date of our wonderful and very warm dinner with President Xi in Argentina,” President Trump Tweeted.
Presidents Trump and Xi said they would hold off on imposing additional tariffs for 90 days starting on 1 December, while they sought to resolve their trade disputes that have seen the flow of hundreds of billions of dollars worth of goods disrupted by tariffs.
President Trump has said China is supposed to start buying agricultural products immediately and cut its 40% tariffs on US automobile imports.
White House economic adviser Larry Kudlow said Tuesday that a reduction in Chinese tariffs on US cars and agricultural (SOY) and energy (LNG) commodities would be a “litmus test” for whether US-China trade talks were on track.
Washington also expects China to promptly address structural issues including intellectual property theft and forced technology transfers, US officials have said.
White House National Security Adviser John Bolton told the WS-J’s CEO Council meeting on Tuesday that Chinese theft of US intellectual property was among the administration’s Top concerns.
He said the United States should look into a rule that would bar imports of Chinese products that used stolen US intellectual property.
President Trump has long accused China of unfair trade practices that hurt Americans and the US economy.
“When people or countries come in to raid the great wealth of our Nation, I want them to pay for the privilege of doing so. It will always be the best way to max out our economic power,” he said Tuesday.
His appointment of Mr. Lighthizer to lead the talks instead of Treasury Secretary Steven Mnuchin puts 1 of the administration’s toughest China critics in charge. President Trump said Tuesday that Mr. Lighthizer would work closely with Messrs Mnuchin, Kudlow and Peter Navarro.
Thus, reminding President Xi, get this done of face The Tariff Man!