In remarks delivered from the White House, President Donald Trump indicated a shift in strategy regarding trade relations with China. He stated unequivocally that the United States would not engage in confrontational negotiations – commonly referred to as “hard ball” – and dismissed the prospect of escalating tariffs.
Speaking on Tuesday (Wednesday AEST), the president emphasized that any future tariffs on Chinese imports would be significantly reduced, moving far below the current level of 145 percent. “We’re not going to play hardball with China,” he declared. “I’m not going to mention Covid. I’m not going to say: ‘Oh, I’m going to play hardball with China. I’m going to play hardball with you, President Xi.'”
Trump asserted a preference for a collaborative approach, stating, “We’re going to be very nice. They’re going to be very nice, and we’ll see what happens.” However, he underscored the necessity of reaching an agreement, asserting that China must participate in trade negotiations to maintain access to the American market. He added, “Ultimately, they have to make a deal, because otherwise they’re not going to be able to deal in the United States, and we want them involved.”
Addressing the specific tariffs he had previously imposed, Trump acknowledged their current high value – labeling 145 percent as “very high” – but affirmed that these figures would decrease substantially. “It won’t be anywhere near that high,” he explained, adding, “It’ll come down substantially, but it won’t be zero; Used to be zero.”
Looking ahead, the president expressed optimism regarding a successful resolution with China, predicting a mutually beneficial relationship. “I think we’re going to live together very happily and ideally work together, so I think it’s going to work out very well,” he said.
Separately, President Trump reiterated his stance on the Federal Reserve, stating he desires Jerome Powell, the current chair, to actively pursue lower interest rates. He acknowledged recent criticism of Powell but firmly denied any intention of removing him from office: “I don’t want to talk about that, because I have no intention of firing him.” He further suggested a preference for Powell’s approach to monetary policy, citing the current economic climate as conducive to rate reductions.
These comments follow recent attacks by Trump on the Federal Reserve and suggestions of his authority to dismiss the independent chair. The administration’s tariff policies have been a subject of considerable debate, culminating in a warning from the International Monetary Fund (IMF) that such measures pose a substantial risk to global economic stability, with significant consequences for the United States.
