China turns pessimistic on trade war settlement. The pessimism rises following a statement made by US President Donald Trump.
On Monday, a government source told CNBC that Beijing grows doubting about Washington’s intent to roll back the existent tariffs. In addition, confusion in China rises as Trump administration projects wavering statements pertaining to the tariffs.
Earlier this month, China stated that both countries had reached an agreement on the tariff eradication. As both countries learned about each other’s concerns, tariff eradication is a necessity to succeed Phase One deal signing.
Now that Trump has a change of mind, China has no option but to cautiously observe US’ policies and the overall situation in details. The observation, in particular, examines political situation in the US.
In addition, Chinese officials intend to wait for Trump to show his true color as his decision might constantly alter even in the near months. As for the US, the White House has yet to announce an official statement regarding the issue.
Also Read: Trump to Raise Tariffs if US-China Produces No Deal
US-China Haven’t Agreed on Tariff Rollback Yet, Trump Said
Despite China stating that both countries, in early November, agreed to eradicate tariffs, Trump announced that both Washington and Beijing have no agreement in tariff eradication last week, at least for now.
The Trump administration’s statement shocks Beijing and the entire world. Even worse, the controversial utterance diminishes the hope that has slowly grown since US-China partial trade deal was first made public.
However, the incertitude also occurs in the White House itself. Reportedly, contradictory beliefs emerge among its officials.
On one hand, the White House Press Secretary Stephanie Grisham opined that the trade deal could lift some tariffs to defuse the escalating tensions. Accordingly, her statement was in line with what Trump expressed last month.
White House trade adviser Peter Navarro, on the other hand, hinted that the administration does not stipulate rollback. That, however, does not negate the possibility that both countries will eliminate the tariffs.
Larry Kudlow, an economic adviser to President Donald Trump, argues that a trade deal require tariff agreement and concessions. That said, it is highly possible for both countries to erase the tariffs.