President Donald Trump said he will “probably“ speak to Chinese President Xi Jinping over the phone as top trade officials from the two countries prepare to meet later today for a new round of talks.
The negotiations hit a rough patch after U.S. officials accused China of reneging on a number of commitments it had made in the year-long trade talks.
In response, the U.S. says it will increase tariffs to 25 percent on roughly $200 billion worth of imports, from 10 percent currently, starting on Friday. China has said it would hit back with its own retaliation.Trump reiterated that the tariff increase would be going into effect at 12:01 a.m. Friday and said the administration is “starting the paperwork today” to impose a 25 percent tariff on all remaining imports from China.
“Our alternative is an excellent one,” Trump said at the White House today, in an apparent reference to the tariff increases. “It’s an alternative I’ve talked about for years.”
Trump said it was still possible for the two sides to reach a deal. He said he received a “beautiful” letter from Xi and that talks between Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin and other officials would begin at 5 p.m. today.
“We have two great alternatives,” he said. “Our country is doing fantastically well.”
The Dow Jones Industrial Average, which was down nearly 450 points in morning trading, recovered somewhat by midday. As of 12:30 p.m., it was down about 250 points, or roughly 1 percent. The broader Standard & Poor's index of 500 major stocks was down about 0.
7 percent.Article originally published on POLITICO Magazine