By David Lawder and Andrea ShalalWASHINGTON (Reuters) – The President of the United States, Donald Trump, is scheduled to engage in a conversation with the President of China, Xi Jinping, on Tuesday. This information was disclosed by Peter Navarro, the top trade adviser to President Trump, during a Politico Live event. This comes as newly implemented 10% tariffs on Chinese imports have taken effect, prompting Beijing to announce retaliatory tariffs. Navarro, when asked about how U.S. consumers and companies should interpret the China tariffs, responded to Politico by saying, “Let’s wait and see what unfolds during today’s call.”
On Tuesday, China retaliated by imposing targeted tariffs on U.S. imports and issuing warnings to several companies, including Google, regarding potential sanctions. This measured response was in reaction to Trump’s broad 10% tariffs in addition to prior tariffs already in place. When questioned about the possibility of the Trump-Xi call resulting in a reprieve for Beijing similar to the one-month delay granted for the imposition of 25% tariffs on Canadian and Mexican goods, Navarro conveyed that the decision ultimately lies with the President. Referring to Trump, Navarro stated, “I do not speculate ahead of the President.”
White House press secretary Karoline Leavitt did not provide any updates on the Trump-Xi call but mentioned that it would occur “shortly.” In relation to Trump’s promise during his campaign to impose tariffs of 60% on Chinese goods, Navarro mentioned that Jamieson Greer, the nominee for U.S. Trade Representative, would “readjust” the existing Section 301 tariffs on Chinese imports that were imposed by Trump in his first term.
The review, as mandated by a trade memorandum issued on Trump’s inauguration day, would evaluate whether China had adhered to the terms of the “Phase 1” trade agreement aimed at ending the tariff conflict between the world’s two largest economies from 2018 to 2019. It would also scrutinize China’s practices concerning intellectual property and whether the country was devaluing its currency against the dollar for a trade advantage.
Navarro asserted that the process would be conducted methodically and with the best interest of the American people in mind. He emphasized that decisions would be based on concrete data, such as the number of Americans affected by fentanyl-related overdoses, immigration patterns, and trade imbalances. Navarro highlighted that the primary objective of the initial wave of tariffs was to secure the U.S. border and combat the influx of fentanyl, noting positive responses from Mexico and Canada.
Mexico was granted a 30-day extension for the tariffs after promising increased efforts in addressing the issue, while Canadian Prime Minister Justin Trudeau came to realize that the situation was more about a drug crisis than a trade conflict.
