Donald Trump declared during a press conference at the White House that high prices on goods from China “will drop considerably, but it will not be zero.”
Trump’s comments responded to previous comments by the Treasury Secretary Scott Bessent, who said that the high prices were not durable and that he expects a “de -escalation” in the business war on Trump Secretary.
Trump has placed 145% import taxes on China, which was coupled with 125% prices on American products. Trump has placed prices on several dozen countries, which means that the stock market stumbles and interest rates are increasing on American debt while investors are concerned about slower economic growth and higher inflationary pressures.
The details of Bessent’s remarks were confirmed by two people familiar with the remarks that insisted on anonymity to discuss it.
“I say that China will be an SLOG in terms of negotiations,” said Bessent, according to a transcription obtained by the Associated Press. “None of the parties think that the status quo is sustainable.”
The S&P 500 stock market index increased by 2.5% after Bloomberg News initially announced Bessent’s remarks.
Trump recognized the increase in the stock market in the comments of journalists after the performance of evidence of Paul Atkins ceremony as president of the Securities and Exchange Commission on Tuesday.
However, Trump avoided confirming if he too thought that the situation with China was not durable, as Bessent in camera said.
“We are doing well with China,” said Trump.
Despite his high prices, Trump said he would be “very nice” for China and would not play hardball with Chinese President Xi Jinping.
“We will live together very happily and ideally work together,” said Trump.
The American president said that the final rate rate with China would decrease “substantially” of the current 145%.
“It will not be so high, will not be so high,” said Trump.
The Trump administration met for interviews with counterparts from Japan, India, South Korea, European Union, Canada and Mexico, among other nations.
But Trump has not shown no public indication that he plans to withdraw his reference rate at 10%, even if he insisted that he was looking for other nations to reduce their own import taxes and remove non-tariff obstacles which, according to the administration, have embarrassed the exports of the United States.
China warned other countries on Monday to conclude trade agreements with the United States that may have a negative impact on China.
“China firmly opposes any party, reaching an agreement at the expense of the interest of China,” the Chinese Ministry of Commerce said in a statement.
The White House press secretary Karoline Leavitt said that the Trump administration had received 18 proposals from other countries for trade agreements with the United States, adding: “All those involved want to see a trade agreement.”
The uncertainty about the prices on the financial markets has also been amplified by Trump calling for the federal reserve to reduce his reference interest rate, the president saying that he could dismiss the president of the Fed Jerome Powell if he wanted.
Trump later said that he wanted Powell “early” in the drop in rates and that he did not intend to dismiss the Fed chair, despite the fact that he previously suggested that he would do it.
