Authored by David Lawder and Andrea ShalalWASHINGTON (Reuters) – The conversation between U.S. President Donald Trump and Chinese President Xi Jinping set for Tuesday has ignited suspense in the markets, according to top trade adviser Peter Navarro who spoke at a Politico Live event. This comes as new 10% tariffs on Chinese imports have been implemented, prompting retaliatory tariffs from Beijing.Asked about how U.S. consumers and companies should interpret the China tariffs, Navarro responded to Politico by saying, “Let’s see what happens with the call today.”China retaliated by imposing targeted tariffs on U.S. imports on Tuesday and issuing warnings to several companies, including Google, for potential sanctions, in response to Trump’s broad 10% duties on top of existing tariffs.When asked whether the Trump-Xi call might result in a similar delay for Beijing as seen with the one-month postponement of 25% tariffs on Canadian and Mexican goods, Navarro replied, “It’s up to the boss. I never get ahead of the boss,” in reference to Trump.White House press secretary Karoline Leavitt did not provide any updates on the impending Trump-Xi call, but mentioned that it would take place “soon.”Regarding Trump’s promise during his campaign to impose 60% tariffs on Chinese goods, Navarro stated that U.S. Trade Representative nominee Jamieson Greer would “reassess” the existing Section 301 tariffs on Chinese imports that were implemented during Trump’s first term.The review, initiated by Trump’s trade memo on inauguration day, will evaluate whether China has adhered to the terms of the “Phase 1″ trade agreement aimed at concluding the 2018-2019 tariff dispute between the two largest economies globally. It will also delve into China’s intellectual property practices and assess if it is manipulating its currency to gain a trade advantage against the dollar.”This process will be conducted in a calculated manner, ensuring benefits for the American people,” Navarro affirmed. “We won’t engage in speculative headlines about the President’s actions. We trust Trump to make the decisions.”Navarro played down the impact of tariffs and trade policy uncertainties on U.S. consumers and businesses, asserting that decisions will be based on precise data concerning issues like fentanyl-related overdoses, immigration, and trade imbalances.He stressed that the primary focus of the initial tariffs is to secure the U.S. border and combat the fentanyl trade, noting immediate responses from Mexico and Canada. Mexico was granted a 30-day extension for tariffs after promising enhanced efforts, while Canadian Prime Minister Justin Trudeau recognized the importance of addressing the drug issue rather than framing it as a trade conflict.(Reporting by David Lawder and Andrea Shalal; editing by Deepa Babington)
