U.S. President Donald Trump said on Tuesday he is not in a hurry to talk to his Chinese counterpart Xi Jinping to ease the escalating trade war, triggered by his 10% tariffs on all Chinese imports.
China imposed targeted tariffs on U.S. imports on Tuesday and put several companies, including Google, on notice for possible sanctions, in a measured response to Trump’s tariffs.
“That’s fine,” Trump said at the White House when asked about China’s retaliatory duties.
Potential Delay
A conversation between Xi and Trump is seen as key to a potential easing or delay of tariffs, as conversations with Mexican and Canadian leaders did on Monday.
White House spokeswoman Karoline Leavitt told reporters that a Trump-Xi call still needed to be scheduled.
“President Xi did reach out to President Trump to speak about this, maybe to begin a negotiation. So we’ll see how that call goes,” Leavitt told Fox Business Network earlier on Tuesday.
China’s Limited Reply
Beijing’s limited reply to Trump’s imposition of a 10% tariff on all Chinese imports underscored the attempt by Chinese policymakers to engage Trump in talks to avert an outright trade war between the world’s two largest economies.
Liu Pengyu, spokesperson for the Chinese embassy in Washington, said China hoped Washington would work with Beijing to ensure stable, healthy and sustainable ties between the two countries.
Investment, Supply Chains At Risk
The International Monetary Fund, which last month warned that a spike in protectionist policies could hit investment and disrupt supply chains, said it was “in the interests of all to find constructive ways to resolve disagreements and enable trade.”
Capital Economics, a UK-based research firm, estimated that China’s additional tariffs would apply to about $20 billion of annual imports, compared with the $450 billion worth of Chinese goods subject to the Trump tariff that took effect at 12:01 a.m. ET on Tuesday (0501 GMT).
“The measures are fairly modest, at least relative to U.S. moves, and have been calibrated to send a message to the U.S.,” Julian Evans-Pritchard, the firm’s head of China Economics, said in a note.
Trump on Monday suspended his threat of 25% tariffs on Mexico and Canada, agreeing to a 30-day pause in return for concessions on border and crime enforcement.
Europe Next?
Trump suggested on Sunday that the European Union would be his next target for tariffs, but did not say when.
Ursula von der Leyen, head of the EU’s executive European Commission, said Brussels would be ready for tough negotiations but underlined the need to lay foundations for a stronger partnership with the EU’s largest trade and investment partner.
“We will be open and pragmatic in how to achieve that. But we will make it equally clear that we will always protect our own interests – however, and whenever that is needed,” she said in a speech.
The European Commission and the new U.S. administration have been in contact at a technical level but von der Leyen and Trump have not spoken directly yet, a Commission spokesperson said.
China’s new measures, announced as the Trump tariffs took effect, include a 15% levy on U.S. coal and LNG and 10% for crude oil, farm equipment and a small number of trucks as well as big-engine sedans shipped to China from the United States.
‘Anti-Monopoly Investigation’
China said it was starting an anti-monopoly investigation into Alphabet’s Google. It put PVH Corp the holding company for brands including Calvin Klein, and U.S. biotechnology company Illumina on a list for potential sanctions.
PVH said in a statement it was surprised and “deeply disappointed” by China’s decision, adding it maintains strict compliance with all relevant laws, regulations and standards.
“Illumina has a long-standing presence in China … Wherever Illumina operates, we comply with all laws and regulations,” an Illumina spokesperson said in an email.
Google declined to comment on the investigation.
(With inputs from Reuters)
