After shocking markets with new trade measures against China that go into effect on November 1, US President Donald Trump issued a new statement today to ease tensions.
“I think we will have a strong trade agreement with China,” Trump said, adding, “I will meet with President Xi in South Korea and we will also discuss the Taiwan issue.”
President Trump also said that China has paid the United States a lot of money through tariffs and that “China has treated the United States with respect.”
President Trump also asserted that economic pressure is working, saying, “China will come to the table on tariffs.” “China will also be at the table when it comes to rare earths,” he added.
“If China doesn’t trade with us, they’re going to have big problems,” Trump said, adding, “I want them to start buying soybeans from China again.”
President Trump also said, “We are far ahead of China in the field of artificial intelligence, and we are also advanced militarily,” and “We are catching up with China in the field of shipbuilding.” President Trump added, “We can threaten China on other issues, like aviation.”
“I really like the relationship I have with Mr. Xi. I’ve been invited to go to China, and I’m planning on visiting China early next year,” Trump said, adding that diplomatic channels are open.
The Trump administration announced that the historic first round of tariffs implemented last month brought in about $200 billion in revenue. President Trump said some of the proceeds would go toward military pay, agricultural subsidies and social assistance.
But experts say the White House has very limited authority over how those revenues are spent. Under U.S. law, federal revenue is transferred to the Treasury Department, and Congress decides how to spend it.
The Trump administration has traditionally exercised executive authority over the use of funds authorized by Congress, but there are legal obstacles to free use of tariff revenue.
*This is not investment advice.
