Kudlow plays up prospect ‘deal can be made’ between Trump and Xi

Andrew Cummings
November 28, 2018

Ahead of the G20 meeting in Argentina, which begins on Friday, the United States president used a newspaper interview to warn China that he expects to move ahead on the imposition of higher import tariffs on Chinese goods.

The US president also said that it is "highly unlikely" that Washington would delay a scheduled January tariff increase unless another trade deal is agreed upon.

Trump told the Journal that he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent and repeated his threat to slap tariffs on all remaining imports from China.

Given that a massive amount of electronic equipment is manufactured in China, these proposed new tariffs would likely have a major impact on the video game industry.

The Trump administration reached an agreement with Canada and Mexico in October to revamp the North American Free Trade Agreement (NAFTA) following fraught negotiations. And things have been moving very slowly between the two countries'.

"Maybe. Depends on what the rate is", Trump said, referring to the possibility of tariffs on mobile phones and laptops.

"We want a world ideally of zero tariffs, zero non-tariff barriers and zero subsidies", he said. "If we don't make a deal, then I'm going to put the$267 billion additional (tariffs) on".

What's the endgame in the US-China trade war? Washington is however open to reaching a deal with Beijing, with White House economic adviser Larry Kudlow saying the US President is expecting this to take place over a dinner on Saturday. 'I am conservatively optimistic that can be done, ' he added.

Economists at the Dutch lender Rabobank said the world economy could suffer badly over the next decade if the US-China trade war escalates further, with as much as 2% of GDP growth lost by 2030.

At a regular news briefing in Beijing on Tuesday, Chinese foreign ministry spokesman Geng Shuang reiterated China's hope that both sides could work towards a "positive outcome" from the meeting between the two leaders, citing a "consensus" they reached during a November 1 telephone call.

Trump's advice to all businesses that manufacture is to "build factories in the United States and to make the product here".

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