Trump announces September trade talks while China warn retaliation

In a speech on Thursday, US President Donald Trump said that September trade talks with China are ‘still on’, putting to rest the speculations of talk being cancelled. Trump told reporters in New Jersey, that top negotiators of US-China trade deal are having ‘productive talks’, hinting of a possibility of another round of talks in September. The team of delegates from both the nations are scheduled to meet for a face-to-face trade negotiation in Washington in two weeks time.

Trump said, “September, the meeting is still on as I understand it, but I think more importantly than September, we’re talking by phone, and we’re having very productive talks.”

He added, “We’re talking and they’re offering things that are very good…I never said China was gonna be easy, but it’s not tough and they wanna make a deal. We just spoke to ’em yesterday, they wanna make a deal, they wanna make a deal. They have to make a deal.”

Trump also warned that the US still holds “the ultimate form of retaliation.”

Trump also mentioned that he would be holding a telephonic meeting with Chinese Premier Xi Jinping ‘very soon’. Though he did not reveal the exact day or time of the same.

China is open to holding trade talks with US but also warned of adopting retaliatory measures if US puts into action its additional tariffs levied on Chinese imports worth $300 billion.

But China’s foreign ministry spokesperson used a softer tone while put out the message that China hopes to “meet the U.S. halfway” to resolve trade concerns.

Earlier this week, the United States Trade Representative announced that new tariffs, which were originally set to come in effect from September 1, would be delayed for certain products until December 15. Besides, some products were taken off the tariff list citing ‘health, safety and national security and other factors’.

Talking about the US economy which is also bearing the brunt of its own stern tariff punch, Trump said, “The economy is phenomenal. We had a couple of bad days but we are going to have some very good days because we had to take on China.”

With the recession looming over global markets, not only US and China but all the leading economies are hoping for a deal. There a slight upward movement in the market as hopes run high with both the economic powers showing keenness on striking a deal but what makes investors jittery is the scope of retaliation, which could lead to huge capital outflow. With markets turning highly volatile, investors are already moving towards safe havens such as gold.

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