The trade war between the United States and China has escalated as both countries have imposed tariffs exceeding 100%, effectively severing their trade relationship. The standoff has raised concerns about whether the situation can be resolved in the short term. US Treasury Secretary Benson stated in Congress on Tuesday (May 6) that the two countries have not yet initiated trade negotiations. President Trump also mentioned that China wants to negotiate and meet, and the US will meet with them at the appropriate time.
Secretary Benson stated during a hearing at the House Appropriations Committee on Tuesday, “We have not had trade negotiations with China.”
He mentioned that many other trading partners have offered very favorable conditions to the United States, “I expect we can significantly reduce the tariffs we face, as well as non-tariff barriers, currency manipulation, and subsidies, including subsidies for labor and capital investment.”
The US is currently in trade negotiations with many countries separately. Benson said the Trump administration may announce trade agreements with some other countries “as early as this week.” However, he did not disclose which countries have reached agreements.
During a meeting with Canadian Prime Minister Kane at the Oval Office in the White House on Tuesday, President Trump responded to questions from reporters seeking his opinion on Secretary Benson’s statement that trade negotiations with China have not yet started.
“They (China) want to meet, they are unable to do business with the United States now. Those ships are turning around in the Pacific,” Trump said. “Those ships are very large. It takes about 10 miles to turn around.”
Trump accused his predecessor of causing the United States to lose $1 trillion in trade with China.
“If we don’t trade (with China), we haven’t lost anything. We saved a trillion dollars. This is not a small amount. But they want to negotiate, want to meet. We will meet with them at the right time,” he said.
When asked by reporters, Trump said he has not met with any Chinese officials yet, but he claimed that Beijing’s economy is suffering “huge losses” due to not trading with the United States.
President Trump talked about the US-China tariff issue on Air Force One on Sunday (May 4). He emphasized that he wants to reach a fair agreement with China and condemned the Chinese Communist Party for extorting the US.
Currently, the US imposes a 145% tariff on Chinese goods, and China retaliates with a 125% tariff on American goods. Neither the US nor China has shown willingness to reduce tariffs first. Secretary Benson stated that easing trade tensions depends on China, as the goods China sells to the US are five times the amount of goods the US sells to China.