President Trump talked more about the tariffs with China and about aid for producers hit hard by the ongoing trade war with China.
Speaking at the White House, President Trump said the following: “This is a very positive step. I love the position we’re in. There can be some retaliation, but it can’t be very substantial by comparison, and out of the billions of dollars we’re taking in, a small portion of that will be going to our farmers because China will be retaliating probably to a certain extent against our farmers. We’re gonna take our highest year, the biggest purchase that China has ever made with our farmers, which is about $15 billion, and do something reciprocal to our farmers so our farmers can do well. They’ll be planting and they’ll be able to sell for less and they’ll make the same kind of money until such time as it’s all straightened out, so our farmers will be very happy, our manufacturers will be very happy, and our government is very happy because we’re taking in tens of billions of dollars. I think it’s working out very well.”
The President spoke after China answered the U.S. tariff increase today, with tariff increases of its own. China is raising tariffs on $60 billion of U.S. goods. The Chinese Finance Ministry says the penalty duties of 5% to 25% will be on hundreds of U.S. products including batteries, spinach, and coffee. They will take effect on June 1st.
It follows the U.S. increasing duties Friday on $200 billion worth of Chinese imports from 10% to 25%.
The two sides say trade talks will continue. National Economic Council Director Larry Kudlow says Chinese officials have invited U.S. officials to Beijing for further talks. China’s chief trade czar says the negotiations have not broken down. He says they have only suffered a small setback. He says officials are still cautiously optimistic for the future.
The President says he’ll meet with Chinese leader Xi at the G20 summit next month.