President Trump said Thursday that he had no fear that Chinese economic retaliation in the ongoing trade war would lead to a recession in the U.S. He argued that China was unlikely to retaliate in the first place and it would do more damage to itself if it did.
“No, the longer the trade war goes on the weaker China gets and the stronger we get,” Trump told reporters. “I have a feeling it is going to go fairly short.”
Trump noted that talks were currently happening between the two nations, and further ones were expected in two weeks. He was noncommittal about whether they would lead to lead to a deal, stating that he was still not pleased with what was on offer from China.
“I’ll be honest: I’m not there yet,” Trump said.
The prospects for the talks have been further shaken by unrest in Hong Kong. China has accused the U.S. of having a hand in the protests. Trump on Thursday urged Chinese President Xi Jinping to meet with protesters. “If he sat down with their representatives I have no doubt he would solve that problem,” he said.
Beijing said earlier Thursday that if the U.S. followed through with 10% tariffs on $300 billion worth of Chinese goods set to go into effect on Sept. 1, then it would take countermeasures.
On the same day, China’s foreign ministry spokesman Hua Chunying called on the U.S. to “meet China halfway” in their next trade talks, which are set to begin at the end of the month. “On the basis of equality and mutual respect, we will find mutually acceptable solutions through dialogue and consultation,” he said.
