Tariffs on China: Trump Expresses Reluctance, Signals Potential Trade War Aversion
In a recent television interview, US President Donald Trump expressed hesitation to impose tariffs on China, hinting at a possible avoidance of a trade war between the global economic superpowers.
Trump's Stance on Tariffs
"We have significant leverage over China with tariffs, and they are not keen on them," said Trump in an interview with Fox News. "I prefer not to resort to them, but they represent a potent weapon against China."
Despite threatening to implement 10% tariffs on China upon taking office, Trump has now softened his stance, proposing alternative solutions for addressing the fentanyl issue.
Impact on Chinese Currency
Trump's comments have positively impacted the Chinese yuan in both onshore and offshore markets. The offshore yuan climbed 0.3% against the US dollar, while the onshore yuan gained 0.2%.
Trump's Relationship with China
In the same interview, Trump expressed admiration for China and its leader, Xi Jinping. He described Xi as "like a friend" and characterized their recent phone call as "productive."
Trump acknowledged China's ambitious nature and Xi's personal drive. He emphasized his positive relationship with Xi prior to the COVID-19 pandemic.