The President of the United States, Donald Trump, has sent a warning to China about making a trade war deal before the elections in 2020.
“I think there’ll be a deal maybe soon, maybe before the election, or one day after the election. And if it’s after the election, it’ll be a deal like you’ve never seen, it’ll be the greatest deal ever and China knows that,” said Trump.
“If it’s after the election, it’ll be the toughest deal anybody’s ever had to make from the standpoint of China, and they know that. China knows that. China would love to have Sleepy Joe (Biden) and Elizabeth ‘Pocahontas’ Warren,” Trump adds.
The U.S. presidential election is slated at the start of November next year.
A Chinese delegation led by its vice-minister for finance, Liao Min, will be going to Washington this week to present China’s agenda for the trade deal talks scheduled in October. The talks will be between US Treasury Secretary Steven Mnuchin, US trade representative Robert Lighthizer, and Chinese Vice-Premier Liu He.
While the talks were confirmed last Tuesday, China’s official media outlets like the Global Times, the People’s Daily, and Xinhua News Agency, were mum about the scheduled talks. There was also no word from social media accounts affiliated with Beijing regarding the news about negotiations.
Earlier this month, both the U.S. and China exchanged gestures of goodwill. This was before confirmation was made of the October trade deal talks between the two parties. With the upcoming talks, this would give two of the largest economies in the world the chance to reach an agreement over the trade war that they have been involved in for the past 14 months.
Since the trade war between the United States and China started, it has affected not only affected their markets but also those from around the world. The economic growth of these two countries has been affected as well. There have been fears of an upcoming global recession.
As part of the conciliatory gestures between the two countries, China will lift the tariffs on U.S. soybeans, pork, and other farm goods.
China’s removal of tariffs on these products comes after President Trump’s decision to postpone imposing the October 1 planned tariff hike on Chinese imports to October 15.
The goodwill gesture by China has been lauded by U.S. farm groups. China is the world’s top soybean buyer and largest pork consumer. The groups are awaiting more information and clarity from China about what exact tariffs would be lifted.
“The importance of this market to U.S. pork producers is clear. U.S. pork exports could single-handedly make a huge dent in the trade imbalance with China,” said National Pork Producers Council President and North Carolina hog farmer David Herring.
The U.S. Department of Agriculture has also confirmed that China bought a total of 720,000 tonnes of soybeans last week.
China’s decision to lift the tariffs on soybeans from the U.S. would help its pig farmers. Soy is one of the animal feeds being used by Chinese pig farmers. The decrease in prices would help them most especially after dealing with the soaring pork prices caused by the African swine fever epidemic.
“China has a huge market, and the prospects for importing high-quality U.S. farm produce are broad. China hopes the United States will be true to its word, make progress on its commitments and create favorable conditions for bilateral agricultural cooperation,” said the Xinhua Daily.
The US Treasury Secretary Steven Mnuchin has referred to Trump’s decision to delay the tariffs as a “goodwill gesture to the Chinese.”