Trump predicts China will concede on trade - Reuters

 Reuters is reporting on the current state of the tariff showdown between the US and China following Trump's tweets late on the weekend.

Key quotes (source: Reuters)

"U.S. President Donald Trump predicted on Sunday that China would take down its trade barriers, expressing optimism despite escalating trade tensions between the world’s two largest economies that have roiled global markets in the past week. The two countries have threatened each other with tens of billions of dollars’ worth of tariffs in recent days and Chinese officials have said this is not the time for negotiations. But Trump administration officials have stressed that the tariffs are not yet in place and the dispute could be resolved through talks."

"In a Twitter post on Sunday, Trump echoed this, saying “China will take down its trade barriers because it is the right thing to do. Taxes will become reciprocal and a deal will be made on intellectual property.” He referred to his personal relationship with Chinese President Xi Jinping and said the two men would always be friends, adding, “Great future for both countries!” There has been no indication that Trump and Xi have had any conversations since the trade conflict erupted last week and no formal trade talks between the United States and China have been scheduled yet."

"China’s Commerce Ministry spokesman, Gao Feng, said on Friday that Trump’s threat of another package of tariffs was “extremely mistaken” and unjustified, adding no negotiations were likely in the current circumstances. China’s state media has sharply criticized the United States, saying its trade protectionism actions will end in defeat. “If the U.S. says that it will pay any price, it must be firmly attacked,” China’s official Xinhua news agency said on Saturday. On Sunday, the state People’s Daily newspaper sought to tap into concern among some U.S. business leaders over the impact of Washington’s planned tariffs. “We call on the international business community including the United States industrial and commercial circles to take prompt and effective measures and urge the U.S. government to correct its errors,” it said."

Trump’s chief economic adviser, National Economic Council Director Larry Kudlow, has repeatedly sought in recent days to soothe concerns about a trade war, stressing that no tariffs have yet been implemented. He reiterated that in an interview on CNN’s State of the Union show on Sunday, saying, “This process might turn out to be very benign ... Maybe China will want to come round and talk in earnest - so far it hasn’t, I hope it does.” He added that Trump and Xi have a “very close relationship” and that the United States and China would continue to discuss trade issues."