President Trump expresses confidence the trade dispute with China will be mutually beneficial.
"President Xi and I will always be friends, no matter what happens with our dispute on trade", Trump said in a tweet in which he also predicted that the us would prevail and reach agreements with China on trade issues. Trump's tariff targets many Chinese industries, especially robotics and information technology. "A deal will be made on [trade]". "Great future for both countries!" the president tweeted.
Meanwhile, the China Chamber of International Commerce said that since the U.S. tariff announcement its members had reported greater problems with honouring trade contracts and sharp rises in default risks.
Officials tried to downplay the threat of a trade war, but sent a mixed message on when tariffs against China would be implemented..
Larry Kudlow, the new director of the National Economic Council, said the tariff threats are part of a negotiating tactic created to pressure China to end unfair trade practices.
"China's achievements in innovation were made not through stealing or plundering, but based on the down-to-earth efforts of the Chinese people", said Zhang Zhicheng, head of the department of IPR protection and coordination affairs under SIPO.
"I don't think there's any trade war in sight", Mr. Kudlow said on "Fox News Sunday".
Trump escalated the dispute late Thursday by instructing the U.S. Trade Representative's office to consider tariffs on an additional $100 billion in Chinese imports, raising to $150 billion the amount of Chinese goods under consideration.
"Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers", Trump said at the time, calling Beijing's reaction "unfair".
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Sen. Lindsey Graham, R-S.C., acknowledged that USA industries may take a short-term hit in the trade dispute, saying, "There is no way for us to address China without absorbing some pain here". "We're moving forward in a measured way", he said on NBC's "Meet the Press". "What we want from China is very clear".
Still, White House adviser Peter Navarro, known as a hardliner on trade, said the threat of tariffs is not merely a bargaining chip.
China, which already proposed duties on $50 billion in U.S. products including aircraft to soybeans, has threatened to respond proportionately and "counterattack with great strength" if Trump makes good on the latest tariff proposal.
On Sunday, the state People's Daily newspaper sought to tap into concern among some USA business leaders over the impact of Washington's planned tariffs.
"Xi is up against a wily adversary", says Tim Clissold, a foreign investment adviser and veteran of hundreds of Chinese business negotiations.
Trump said he and Xi would resolve their trade differences eventually and "will always be friends."
Asked on CBS's "Face the Nation" about Trump's Sunday tweets and whether China has given any sign of concessions, Treasury Secretary Steven Mnuchin said "it would be inappropriate for me to comment on what our back-channel discussions are".
For Trump, the dispute runs the risk of blunting the economic benefits of his tax overhaul, which is at the center of congressional Republicans' case for voters to keep them in power in the 2018 elections. They would receive a 25% duty increase, mirroring Trump's 25% tariff hike for steel. Global financial markets have fallen sharply as the world's two biggest economies square off.