Trade war: Trump says China wants to restart negotiations

Photo: Nicholas Kamm/AFP/Getty Images

President Trump said on the sidelines of the G7 summit in Biarritz, France, Monday that China has contacted his administration to request for trade talks to resume.

Why it matters: It's a remarkable turnaround, considering how much the long-running trade war has escalated in recent days. Trump made the comments just after global stock markets reeled and China’s yuan currency fell to a fresh 11-year low over the situation, Reuters notes.

Catch up quick: Trump said Friday he would raise tariffs against China, hours after the Chinese government announced it would levy retaliatory duties on earlier U.S. action.

  • White House press secretary Stephanie Grisham clarified Sunday that when Trump told reporters that he "might as well" have "second thoughts" about escalating the trade war, he meant he "regrets not raising the tariffs higher."
  • Trump told reporters that he had "no plans right now" to follow through on his emergency declaration threat to force U.S. companies to leave China but added, "If I want, I could declare a national emergency.
  • China declared just 2 days ago it would continue fighting the trade war "until the end."

What they're saying: Reuters reported earlier Monday that China's economy czar, Vice Premier Liu He, said at a tech conference in southwest Chongqing that the Chinese government was "willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war."

"We believe that the escalation of the trade war is not beneficial for China, the United States, nor to the interests of the people of the world."
— Liu He comments, translated by Reuters

Editor's note: This article has been updated with new details throughout.

Go deeper:

What's next

U.S. and China agree to restart trade talks in D.C.

Photo: Wang Zhao/AFP/Getty Images

China’s Commerce Ministry said in a statement Thursday that its trade representatives will fly to Washington, D.C., in early October to resume stalled trade talks with the United States, the Washington Post reports.

Why it matters: Per Axios' Neal Rothschild, President Trump's trade war has led to bigger trade deficits with China, even though it was intended to improve the trade balance. It's dented consumer sentiment, and the International Monetary Fund has said the prolonged trade tensions were weighing down the global economy.

Trump trade war: 15% tariffs on Chinese imports take effect

The Trump administration's trade war with China entered a new phase on Sunday morning as new 15% tariffs on about $110 billion of Chinese imports took effect, Bloomberg reports.

Why it matters: Per the New York Times, the move changes the rules of trade in ways that have no recent historic precedent. "This is the first time U.S. consumers will see the costs quite directly, right as we head into the busiest shopping time of the year," Western Washington University economics professor Edward Alden told the Washington Post. China has introduced retaliatory taxes, the first phase of which came into effect Sunday.

Trump delays tariff increases on Chinese goods ahead of trade talks

Photo: Thomas Peter-Pool/Getty Images

President Trump announced on Twitter Wednesday he would delay the increase on existing tariffs on $250 billion worth of Chinese goods ahead of the U.S. resuming trade talks with China.

Why it matters: There's evidence that the U.S.-China trade war has hurt both of the world's 2 leading economies. It's dented consumer sentiment and a survey of members of the American Chamber of Commerce in Shanghai released Wednesday found 51% said U.S. and Chinese tariffs had a negative effect on revenue.

Go deeperArrowSep 11, 2019 - Politics