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Trump Rules Out Complete Rollback of China Tariffs as Talks Continue Trump Rules Out Complete Rollback of China Tariffs as Talks Continue
(about 1 hour later)
WASHINGTON — President Trump on Friday said he had not yet agreed to roll back any of the tariffs he had imposed on China and that, if a deal is reached, he would not eliminate all of the levies he’s placed on $360 billion worth of goods. WASHINGTON — President Trump on Friday ruled out rolling back all the tariffs he has imposed on China and indicated that he has not yet decided which levies, if any, he might eliminate as part of an initial trade agreement.
His comments came after a day of White House infighting as the administration debates how many concessions to make in order to reach a trade pact that would help resolve a yearlong fight between the world’s largest economies. The comments came amid conflicting signals this week from the White House and China over the fate of Mr. Trump’s tariffs. The United States has already imposed levies on $360 billion worth of Chinese goods and another round is scheduled for December. China has been pushing to have some portion of tariffs rolled back as part of a “Phase 1” trade agreement and on Thursday, government officials confirmed that the Trump administration would eliminate some tariffs if a deal was reached.
Officials from the United States and China have agreed that, if an initial deal is reached, it would eliminate some of the tariffs that the two countries have placed on each others’ goods. What portion of the tariffs will be canceled and when remained a source of debate within the administration and on Friday, Mr. Trump signaled he was unwilling to do away with them entirely.
American officials have discussed rolling back levies on more than $100 billion of Chinese food, clothing, lawn mowers and other products that were imposed on Sept. 1, according to people briefed on the discussions. That would still leave tariffs on at least $250 billion of Chinese imports in place, as well as the potential for another round of tariffs in December.
The Chinese government indicated Thursday that both sides had committed to removing some tariffs as part of any deal. But not everyone inside the White House is on board with that plan. Some of Mr. Trump’s more hawkish advisers have urged him to avoid removing any levies as part of a “Phase 1” trade deal unless China commits to significant concessions that have so far proved elusive.
On Friday, Mr. Trump signaled that, while China wants all the tariffs removed, he was unwilling to do away with them entirely.
“They’d like to have a roll back — I have not agreed to anything,” Mr. Trump told reporters before departing the White House.“They’d like to have a roll back — I have not agreed to anything,” Mr. Trump told reporters before departing the White House.
”China would like to get somewhat of a rollback, not a complete rollback, because they know I won’t do it,” he said.”China would like to get somewhat of a rollback, not a complete rollback, because they know I won’t do it,” he said.
Stocks, which started the day lower, dipped more after the president’s comments. But the S&P 500 was down a scant 0.1 percent. It was the latest in a series of muted sessions, in which small gains have nonetheless pushed the market to record highs. Stocks, which started the day lower, dipped more after the president’s comments. But the S&P 500 was down a scant 0.1 percent. It was the latest in a series of muted sessions, in which small gains have nonetheless pushed the market to new record highs.
Analysts have speculated that America’s tariffs could be phased out over time as China meets certain benchmarks, opens its markets to foreign firms, purchases billions of dollars of agricultural product from the United States and demonstrates that it is following through on commitments to respect American intellectual property. Analysts have expected that America’s tariffs could be phased out over time as China meets certain benchmarks and demonstrates that it is keeping its commitments to respect American intellectual property, open its markets to foreign firms and purchase billions of dollars of agricultural product from the United States.
White House advisers are considering different strategies for rolling off existing tariffs, according to people briefed on their plans. One option is to roll more tariffs off initially, but set up a mechanism to have them snap back into place if China doesn’t keep its commitments to respect American intellectual property, open its markets to foreign firms and purchase billions of dollars of agricultural product from the United States. Another strategy would involve rolling off fewer tariffs up front and more after time as China meets certain commitments. American officials have discussed rolling back levies on more than $100 billion of Chinese food, clothing, lawn mowers and other products that were imposed on Sept. 1, according to people briefed on the discussions. That would still leave tariffs on more than $250 billion of Chinese imports in place, as well as the potential for another round of tariffs in December.
The Chinese government indicated Thursday that both sides had committed to removing some tariffs as part of any deal. But Mr. Trump’s advisers are once again at odds over whether to remove the tariffs, which have been used to punish China for years of unfair and to get Beijing to accede to America’s trade terms. As the trade war drags on, those tariffs are beginning to take a toll on the American economy.
Mr. Trump’s more moderate advisers have warned him that the tariffs, which are inflicting pain on farmers and manufacturers, could hurt him politically as he heads into re-election. But his more hawkish advisers are pressing him to keep the levies in place until China agrees to make more significant changes to its economic practices, such as ending state subsidies to Chinese companies.Mr. Trump’s more moderate advisers have warned him that the tariffs, which are inflicting pain on farmers and manufacturers, could hurt him politically as he heads into re-election. But his more hawkish advisers are pressing him to keep the levies in place until China agrees to make more significant changes to its economic practices, such as ending state subsidies to Chinese companies.
American officials on Thursday said that China’s announcement that the two sides had reached an agreement to roll back tariffs if a phase 1 deal is reached were correct. And Larry Kudlow, the chairman of the White House’s National Economic Council, told Bloomberg News that “if there’s a Phase 1 trade deal, there are going to be tariff agreements and concessions.” Larry Kudlow, the chairman of the White House’s National Economic Council, told Bloomberg News on Thursday that “if there’s a Phase 1 trade deal, there are going to be tariff agreements and concessions.”
Later in the day, Peter Navarro, one of Mr. Trump’s trade advisers, said that it was too soon to say that tariffs would be rolled back and that the president had not made a decision. In a further sign of internal dissension, Mr. Navarro sent an email to members of the media on Friday in which he lamented that initial reports about a tariff rollback were triggered by “propagandists within the Chinese government.”Later in the day, Peter Navarro, one of Mr. Trump’s trade advisers, said that it was too soon to say that tariffs would be rolled back and that the president had not made a decision. In a further sign of internal dissension, Mr. Navarro sent an email to members of the media on Friday in which he lamented that initial reports about a tariff rollback were triggered by “propagandists within the Chinese government.”
“This claim was simply false,” Mr. Navarro said. “There was no such agreement.”“This claim was simply false,” Mr. Navarro said. “There was no such agreement.”
China has made clear it will not agree to a trade deal without some lifting of tariffs. But any easing of levies would open Mr. Trump to criticism from his political opponents, particularly if the United States does not receive major concessions in return. Right now, the trade deal under discussion would require Beijing to buy more farm goods, open certain markets and do more to protect American technology and intellectual property. But it would not resolve some of the bigger concerns about China’s economic practices, including its ongoing subsidization of industries, which allows Chinese companies to grow quickly and sell their products more cheaply.China has made clear it will not agree to a trade deal without some lifting of tariffs. But any easing of levies would open Mr. Trump to criticism from his political opponents, particularly if the United States does not receive major concessions in return. Right now, the trade deal under discussion would require Beijing to buy more farm goods, open certain markets and do more to protect American technology and intellectual property. But it would not resolve some of the bigger concerns about China’s economic practices, including its ongoing subsidization of industries, which allows Chinese companies to grow quickly and sell their products more cheaply.
On Friday, Senator Chuck Schumer, the Democratic minority leader from New York and a longtime China critic, urged the president to keep the pressure on China.On Friday, Senator Chuck Schumer, the Democratic minority leader from New York and a longtime China critic, urged the president to keep the pressure on China.
“President Trump shouldn’t be giving in to China unless we get something big in return,” Mr. Schumer said on Twitter.“President Trump shouldn’t be giving in to China unless we get something big in return,” Mr. Schumer said on Twitter.
It is still unclear when and where a deal might be inked.It is still unclear when and where a deal might be inked.
White House officials had been targeting the Asia-Pacific Economic Cooperation summit scheduled for later this month in Chile as a venue where Mr. Trump and President Xi Jinping of China could meet and close the deal. That plan was derailed last week when the Chilean government canceled the summit amid political unrest in the country. White House officials had been targeting the Asia-Pacific Economic Cooperation summit in Chile later this month as a venue where Mr. Trump and his counterpart, Xi Jinping, could meet and close the deal. That plan was derailed last week when the Chilean government canceled the summit amid political unrest in the country.
Mr. Trump said that if a signing ceremony with Mr. Xi takes place, he would like it to be held in the United States. He suggested that Iowa or somewhere in “farm country” would be preferable.Mr. Trump said that if a signing ceremony with Mr. Xi takes place, he would like it to be held in the United States. He suggested that Iowa or somewhere in “farm country” would be preferable.
“It will be in our country,” Mr. Trump said.“It will be in our country,” Mr. Trump said.
Still, the president said that an agreement was not a sure thing and insisted, as he had before, that China was more interested in a deal than he was. Still, the president said that the agreement was not a sure thing and insisted as he has before that China wanted to make a deal more than he did.
“I never like to talk about things before we have them,” Mr. Trump said.“I never like to talk about things before we have them,” Mr. Trump said.
— Ana Swanson contributed reporting from Washington and Matt Phillips from New York. — Matt Phillips contributed reporting from New York.