President Donald Trump said Monday that his administration reached an agreement with China to temporarily lower tariffs while the two sides negotiate a final agreement, which the president says will open the Chinese market for U.S. firms.
“The biggest thing that we’re discussing is the opening up China, and they’ve agreed to do that, but it’s going to take a while to paper it, you know, that’s not the easiest thing to paper,” Trump said, noting that it will take time to finalize a formal version of the agreement.
“I think it would be fantastic for our businesses if we could go in and compete and compete with China,” Trump said. “It would be a lot of jobs for China, it would be I think at a time when they can frankly use the jobs, and that’s what we’re talking about.”
He went on to explain that his administration’s push for more market access in China for U.S. businesses is a means of resetting the balance of trade between the two countries, including through the removal of non-tariff barriers to trade.
US, CHINA ANNOUNCE REDUCED TARIFFS FOR 90 DAYS AFTER TRADE TALKS
“We opened up our country to China, they have very few restrictions, and they didn’t open their country to us. Never made sense to me. It’s not fair. And they’ve agreed to open China – fully open China. And I think it’s going to be fantastic for China, I think it’s going to be fantastic for us, and I think it’s going to be great for unification and peace.”
“China also will suspend and remove all of its non-monetary barriers. They’ve agreed to do that… they’re very numerous,” he added.
TRUMP USING POWER OF AMERICAN ECONOMY TO OPEN CHINA TO US EXPORTERS: LUTNICK
The president said that the “reciprocal” tariffs that were unveiled at the White House in so-called Liberation Day festivities on April 2, will be dropped from 125% to 10%, lowering the overall tariff on Chinese imports from 145% to 30% for a 90-day period, while China reduces its tariffs from 125% to 10%.
“Yesterday, we achieved a total reset with China. After productive talks in Geneva, both sides now agreed to reduce the tariffs imposed after April 2nd to 10% for 90 days as negotiators continue on the largest structural issues,” Trump said.
“That doesn’t include the tariffs that are already on that are our tariffs, and it doesn’t include tariffs on cars, steel, aluminum, things such as that, or tariffs that may be imposed on pharmaceuticals because we want to bring the pharmaceutical businesses back to the United States,” he said.
TRUMP SAYS TARIFFS ARE INCENTIVIZING US INVESTMENT, HURTING CHINA
Trump went on to characterize the trade negotiations as being “very friendly” and touted the relationship with China, saying a deal will help boost the country’s economy.
“The relationship is very good. We’re not looking to hurt China; China is being hurt very badly. They were closing up factories, they were having a lot of unrest, and they were very happy to be able to do something with us,” Trump said.
The president also referenced China’s failure to comply with the “phase one” trade deal he reached with the Chinese government during his first term in office.
Treasury Secretary Scott Bessent said late last month in an appearance on FOX Business Network’s “Kudlow” that the U.S. will “have to take into account that they didn’t adhere to the phase one deal.”
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