WASHINGTON – US President Donald Trump said he plans to be “very nice” to China in any trade talks and that tariffs will drop if the two countries can reach a deal, a sign that he may be backing down from his tough stance on Beijing amid market volatility.
“It will come down substantially, but it won’t be zero,” he said on April 22 in Washington, following earlier comments from Treasury Secretary Scott Bessent that the stand-off was unsustainable.
Mr Trump added that “we’re going to be very nice, and they’re going to be very nice, and we will see what happens”.
He also said he did not see the need to say he would “play hardball” with Chinese leader Xi Jinping, and that during discussions he would not raise Covid-19 – an issue that is very politically sensitive in Beijing.
The White House recently launched a website that suggested the virus came from a lab in China, irking the nation’s diplomats.
Mr Trump’s comments come as US stocks and Treasuries have been battered since he rolled out sweeping tariffs on April 2, later announcing a 90-day reprieve for most nations.
The 145 per cent duties that Mr Trump has placed on Chinese shipments in 2025 remain in place, though he has made exceptions for computers and popular consumer electronics.
Asked about Mr Trump’s comments, Chinese Foreign Ministry spokesman Guo Jiakun said at a regular media briefing on April 23 that if the US really wants to solve the problem through dialogue and negotiation, it should stop its threats and blackmail, and start a dialogue with China on the basis of equality, respect and reciprocity.
Mr Guo added that while the US says that it wants to reach an agreement with China, it is also constantly exerting extreme pressure, which is not the right or feasible way.
“China has long pointed out that there is no winner in the tariff war and trade war, and there is no way out of protectionism. Decoupling and breaking the chain, (the US) will only isolate itself. Regarding the tariff war launched by the United States, China’s attitude is very clear – we are not willing to fight, but we are also not afraid of fighting.”
He added that China’s door is open if the US wants to talk; but if the US wants to fight, China will accompany it to the end.
Media outlet Cailian called Mr Trump’s comments a sign that he “is already softening the stance on his signature tariff policies”.
Mr Trump “chickening out” was among the top trending topics on China’s Weibo social media website on April 23.
“Trump is panicking due to the markets plummeting and still very high US Treasury yields,” said Ms Alicia Garcia Herrero, chief Asia-Pacific economist at Natixis. “He needs a deal and quick. China does not need to offer anything big in such circumstances.”
Chinese stocks traded in Hong Kong rose on optimism that tensions with the US may soften.
The Hang Seng China Enterprises Index was up 2.1 per cent as at 11.56am in the financial hub, while the offshore renminbi strengthened to 7.2994 versus the US dollar.
Beijing had indicated earlier in April that it wants to see a number of steps from the Trump administration before agreeing to any discussions, especially reining in disparaging remarks by members of his Cabinet.
Beijing had earlier expressed displeasure with comments Vice-President J.D. Vance made about “Chinese peasants”, with one diplomat calling them “ignorant and disrespectful”.
On April 22, Mr Bessent told a closed-door investor summit that the world’s two largest economies will have to find ways to de-escalate, which would come in the near future. He also said that it was not the US’ goal to decouple from China, according to people who attended the session.
Still, the Treasury chief said a comprehensive deal could take two to three years.
He also reiterated his view that China has stifled its consumer economy and favoured manufacturing at the US’ expense, saying that any agreement would require a rebalancing of trade that allowed the US to increase manufacturing.
Negotiations with China over such a deal have not started yet, he said.
In recent days, Beijing has sent People’s Bank of China governor Pan Gongsheng, deputy governor Xuan Changneng and Finance Minister Lan Fo’an to Washington, which this week will host meetings of the World Bank Group and the International Monetary Fund.
That could create an opening for top Chinese and American officials to exchange views and open the door to trade talks.
Also, one key member to the Chinese team that will negotiate with the Trump administration was likely put in place last week, when Mr Li Chenggang was appointed vice-commerce minister and trade envoy.
Mr Henry Wang Huiyao, founder of the Centre for China and Globalisation research group in Beijing, said Mr Li’s appointment showed that “China is ready to talk”.
He added that Mr Trump’s latest comments signalled a “more reasonable” tone. “I’m sure this would get a response from China, so hopefully we will have a stabilising, cooling period, and we can continue our relationship as normal as possible with President Trump.” BLOOMBERG
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