US President Donald Trump says that the world’s two largest economies- America and China will ‘form a great relationship.’ However, he warned that if he wants, he can ruin China by using his ‘Trucks’.
Trump has also commented on China’s Rare Earth policy. He said that if China stops supplying magnets to America, America may have to impose 200% tariff on them.
Trump’s option and America status
Prior to the bilateral meeting with South Korean President Lee Jae Monga (Oval Office), Trump said that the situation in the US is stronger than China in this trade dispute.
He said, ‘We will have a great relationship with China … they have some options. We have amazing options, but I do not want to use them. If I use them, it will ruin China. ‘ However, Trump did not indicate whether his ‘option’ against China is economic or political or any other factor.
Talk with Chinese President Xi Jinping
Trump also said that he has recently interacted with Chinese President Xi Jinping and he can also visit China soon. He said, “We will probably go to China this year or after this year.” Last month, President Xi invited Trump.
Business peace and tariff policy
On August 12, the United States and China extended their trading peace for 90 days to get more time for talks. In his second term, Trump increased the tariff to all Chinese goods to 145% in April. But, later on most imports it increased to 30%.
In response, China maintained 10% tariff on US products. In April, China, in its response, imposed strict restrictions on the export of Rare Earth. This was followed by softening in the attitude of America and Trump.
China advice to increase imports
The US Treasury Secretary (SCOTT BASSENT) said that China’s oil trade along with the restricted countries is also a point of dispute in the talks. He described China’s Iranian and Russian oil imports as the main dispute during talks in Sweden.
Besant said that the US wants China to reduce its dominance as a manufacturing power of the world and increase its role as a global importer.