WASHINGTON – U.S. President Donald Trump indicated on Monday that a new trade deal with China is possible, suggesting he is open to easing tensions between Washington and Beijing. “It’s possible, it’s possible,” Trump told reporters on Air Force One when asked about the prospect of a fresh agreement.
While Trump did not outline specifics, any potential deal faces challenges, including his recent imposition of an additional 10% tariff on all Chinese imports. The tariffs were introduced in response to what Trump called unfair trade practices and China’s failure to curb fentanyl exports to the U.S.
Despite the tensions, Trump spoke positively about Chinese President Xi Jinping, stating, “There’s a little bit of competitiveness, but the relationship I have with President Xi is, I would say, a great one.”
Trump’s remarks led to a slight recovery in the Chinese renminbi, which rose 0.2% in the offshore market. The onshore renminbi also saw a 0.1% increase.
The U.S.-China trade relationship has been strained since the initial trade deal in January 2020, which included Chinese commitments to purchase an additional $200 billion in American products and crack down on intellectual property theft. The deal faltered amid the COVID-19 pandemic, which Trump blamed on China.
Trump criticized his predecessor, Joe Biden, for not enforcing the terms of the initial agreement, stating, “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 adhere to it.”