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Trump says still talking to China on trade but not going to make a deal for now

Economy Aug 09, 2019 06:45PM ET
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© Reuters. U.S. President Trump speaks about shootings in El Paso and Dayton at the White House in Washington

By Roberta Rampton

WASHINGTON (Reuters) - U.S. President Donald Trump on Friday said he was not ready to make a deal with China and even called a September round of trade talks into question, reviving concerns on financial markets that the bilateral dispute is unlikely to end anytime soon.

Trump also sowed confusion by saying that the United States would not do business with Chinese telecoms giant Huawei Technologies, only to have a White House official later clarify that he was referring to a ban on U.S. government purchases of Huawei equipment, not requests for sales by U.S. companies, which are still being assessed.

"We're talking with China. We're not ready to make a deal - but we'll see what happens," Trump told reporters at the White House before departing for fundraisers on Long Island, New York.

"China wants to do something, but I'm not ready to do anything yet. Twenty-five years of abuse - I'm not ready so fast, so we'll see how that works out," he said.

Ties between the world's two largest economies have deteriorated dramatically since Trump announced on Aug. 1 that he would impose a 10% tariff on a final $300 billion worth of Chinese imports on Sept. 1, prompting China to halt purchases of U.S. agricultural products.

The United States also this week declared China a currency manipulator after it allowed the yuan to slip below 7 to the dollar.

U.S. stocks fell on Friday, capping a week of trading that saw big swings and high volume. All three indexes were down more than 1% in early trading and rebounded later in the session.

The Dow Jones Industrial Average (DJI) fell 90.75 points, or 0.34%, to 26,287.44, and the S&P 500 (SPX) lost 19.44 points, or 0.66%, to 2,918.65.

"It has been a very volatile week," said Elwin de Groot, Rabobank's head of macro strategy. "Until recently, the markets' view was that this trade war will be resolved, but clearly now the thinking is that maybe this is not the case and it could be accelerating from here."

The International Monetary Fund on Friday said China's yuan valuation was largely in line with economic fundamentals, but an IMF official said the fund was encouraging China to pursue a more flexible exchange rate with less intervention.

Trump stood by his administration's currency accusation, saying that the fact that China was subsequently able to stem the yuan's slide was proof of manipulation and was offsetting U.S. tariffs on Chinese imports.

HUAWEI WAIVER PROCESS CONTINUES

Trump's early comments on Huawei initially dashed hopes that the U.S. Commerce Department would soon approve some licenses for American companies to resume some sales to Huawei.

"We are not going to do business with Huawei," Trump said, adding that it did not mean that would not change if a trade deal was done. "I really made the decision it's much simpler not to do any business with Huawei."

But the Commerce Department said on Friday it was still reviewing requests for special licenses for some sales to Huawei. Commerce Secretary Wilbur Ross last month had said decisions on some licenses were expected soon.

Commerce put the telecom equipment maker on a national security blacklist in May, effectively banning sales of U.S. technology, software and services to the firm.

Trump offered to ease some of the restrictions during a meeting with Chinese President Xi Jinping in Japan in late June in exchange for greater Chinese purchases of U.S. agricultural commodities while the two countries resumed trade talks.

But a two-day meeting in Shanghai at the end of July failed to yield any significant purchases by China nor progress on U.S. demands for changes to intellectual property, technology transfer and subsidy policies, prompting Trump to announce his next round of tariffs.

Trump suggested on Friday that planned in-person negotiations with China in Washington in September could be scrapped.

"We'll see whether or not we keep our meeting in September," he told reporters.

White House trade adviser Peter Navarro said preparations for the talks were still going on, however.

"We continue to plan to have the Chinese negotiators come here," Navarro told CNBC.

Trump says still talking to China on trade but not going to make a deal for now
 

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Comments (10)
HAI TRAN
HAI TRAN Aug 11, 2019 7:17AM ET
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it's easy for you to sit here in a free country and comment. Look at the south china morning post and you'll see what china is doing to other small countries in Asia.
bomz bomzov
bomz bomzov Aug 11, 2019 7:17AM ET
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you are from hong kong?
Grady Tennandez
Grady Tennandez Aug 10, 2019 2:19AM ET
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Trump is so stupud president
Jason Chang
Jason Chang Aug 09, 2019 10:44PM ET
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Yes. Just last week dozens died of shooting, harry up bring that to hongkong, let them enjoy the great "freedom"
Jason Zou
Jason Zou Aug 09, 2019 9:08PM ET
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The art of the no deal, just all fuss.
Lloyd McCord
Lloyd McCord Aug 09, 2019 7:48PM ET
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Trump might be sowing confusion at Reuters, but Americans know exactly what's happening and why. It's hilarious that Xi actually thought all the previous progress on a deal was not going to binding, but rather just a "promise" to do better in the future. It's like negotiating with 5 year olds.
Bill Chan
Bill Chan Aug 09, 2019 7:48PM ET
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if you're businessman, would you prefer deal with DT ot XJP?
Bill Chan
Bill Chan Aug 09, 2019 7:48PM ET
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it will not secure if you choose DT
Tamir Berler
Tamir Berler Aug 09, 2019 2:28PM ET
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We are watching the greatest deal in the history of mankind unfold in front of our eyes. There is a reason they are waving US flags in hong kong today. THANK YOU PRESIDENT TRUMP
Brendan Short
Brendan Short Aug 09, 2019 2:28PM ET
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Keep telling yourself that if it makes you feel better. The reality is Trump has no idea what he is doing. He's only filled for chapter 11 SIX TIMES for his "businesses". So much winning.
Lloyd McCord
Lloyd McCord Aug 09, 2019 2:28PM ET
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Brendan Short  . How many skyscrapers have 'your' name on 'em Brendan?
Arghadheep Bagchi
Arghadheep Bagchi Aug 09, 2019 2:28PM ET
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Brendan Short lol..indeed
Chris Cummins
Chris Cummins Aug 09, 2019 2:28PM ET
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Is that how you judge success? You do realize he does not own most of those buildings right? Most are service contracts with them using the Trump name. So he can market himself, that does not say anything about leadership. Think for yourself and lay off the Twitter feed.
Al Vlaj
alvlaj Aug 09, 2019 2:28PM ET
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I heard his book was originally titled “The Art Of Inheriting All My Wealth and Convincing Lemmings I Am Man Of The People”. But there’s a lot of big words there, so he went with “Deal” instead.
Steven Chen
Gamer_LG Aug 09, 2019 11:06AM ET
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3 years of trade war is easy to win
John Hamlett
John Hamlett Aug 09, 2019 10:58AM ET
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If Xi only knew how to write "beautiful letters" this would already be done with.
Steven Chen
Gamer_LG Aug 09, 2019 10:58AM ET
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lol.+1
David David
David9 Aug 09, 2019 10:58AM ET
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You mistaken ... it should be if Trump knew how to write beautiful letters or tweet, President Xi might go easy on him.
Karin KH
Karin KH Aug 09, 2019 10:58AM ET
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U make a big mistake, Trump wants only $$$$$, but Xi hate corrupted ppl & believes greedy ppl took $$$$$ but break promises... hahaha
Lloyd McCord
Lloyd McCord Aug 09, 2019 10:58AM ET
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Karin KH  . Xi's whole family are filthy rich kleptocrats. He's fleecing China blind while imprisoning his critics and competition. Keep drinking the CCTV kool-aid.
David David
David9 Aug 09, 2019 10:40AM ET
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I told you guys ... China has checkmate Trump. He got no where to hide. The farmers don't want subsidies, they want China business but looks like China don't want them anymore. The farmers are ruin and they will not vote for Trump.
joe murray
joe murray Aug 09, 2019 10:40AM ET
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Really. China is in disray. What r u talking about.
David David
David9 Aug 09, 2019 10:40AM ET
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China is in disarray where? What news are you reading? Fox News? You need to read some alternative news to get the facts checked.
Karin KH
Karin KH Aug 09, 2019 10:40AM ET
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pls guys...go to China to see Urselves...we live in America like 3rd world country...very sad!
Brad Dover
Brad Dover Aug 09, 2019 10:17AM ET
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Brexit has already thrown the UK in a recession. . . trump will do the same here
 
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