In the midst of rising tensions generated by the ongoing trade standoff between the United States and China, President Donald Trump called Chinese President Xi Jinping a "smart man," despite the conflict creating waves in global markets. The two trade powers are caught up in a standoff after Trump launched a series of tariffs against Chinese products, which in turn compelled Beijing to retaliate.
Talking to the media at the White House, Trump said, "I think President Xi is a man who knows exactly what needs to be done. He's a very smart man. He loves his country. I know that for a fact. I know him very well."
Optimistic that the conflict will be resolved, he went on, "And I think he's going to want to make a deal. I think that's going to happen. We'll get a phone call at some point, and everything will be ready." Trump went on, "It is going to be a great thing for us, the world and for the humanity."
Since taking office in January, President Trump has instituted a torrent of tariffs on multiple countries in an effort to address what he characterizes as discriminatory trade practices and a persistent imbalance of trade in the U.S. favor.
In a step that is likely to further escalate the US-China trade tensions, Trump said on Wednesday to raise tariffs sharply on Chinese imports to 125 percent. Trump justified the action by invoking what he referred to as a "lack of respect" by China.
Based upon the tremendous disrespect China has shown to the World's Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately," he posted on Truth Social. "Sometime soon, hopefully in the near future, China will understand that the days of taking advantage of the US and other nations, is no longer possible or acceptable.
He went on, "China would like to make a deal. They don't quite know how to go about it.President Xi Jinping is a man who is a very proud individual. They don't quite know how to go about it but will work something out."
Meanwhile, earlier during the same day, an earlier round of US tariffs had come into effect and raised duties on Chinese goods to 104 percent.
China responded by promising to retaliate, saying it would increase tariffs on U.S. imports from 34 percent to 84 percent beginning Thursday. Beijing also filed a formal complaint with the World Trade Organization (WTO), charging Washington with employing "bullying" tactics.
China has so far matched every one of the U.S. tariff increases with its own retaliatory actions, although it has not yet responded to the latest hike to 125 percent.
Temporary Tariff Relief for Other Countries
In doubling down on China, President Trump also unveiled a temporary relief for other countries affected by his trade policies. On Wednesday, he announced a 90-day delay in tariffs for several countries.
"I thought that people were jumping a little bit out of line, they were getting yippy, you know," he said, employing a sports metaphor for losing one's nerve.
Trump explained that he had been following closely the volatility of the U.S. bond market, which he characterized as "very tricky," and added, "I saw last night where people were getting a little queasy."
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