U.S. Trade Deficit With China Hits All-Time High Despite Tariffs

U.S. Trade Deficit With China Hits All-Time High Despite Tariffs

Earlier this year, the Trump administration imposed tariffs on $250 billion worth of Chinese goods, prompting Beijing to retaliate.

Hong Kong and Shanghai led another rally across Asian markets on Friday after Donald Trump's tweet hailing positive talks with Chinese President Xi Jinping was seized on by dealers hoping for a breakthrough in their trade row.

"Just had a long and very good conversation with President Xi Jinping of China", Trump tweeted Thursday morning. But National Economic Council director Larry Kudlow told CNBC on Friday that the Cabinet hasn't even been asked to draw up a trade plan with China, contradicting Trump's claim that he had made the request.

Yesterday, Trump and Xi spoke by telephone in what both sides described as an positive call.

"This is pre-election hype created to make the markets happy; there is no imminent deal with China", Greg Valliere, the chief global strategist at Horizon Investments, told Business Insider.

"I think we will make a deal with China and I think it will be a very fair deal for everybody", Trump said while speaking to reporters from the White House.

On Thursday, the USA accused a Chinese state-owned company of conspiring to steal trade secrets of US chipmaker Micron Technology Inc.as part of a Justice Department crackdown against China in cases of suspected economic espionage.

Just after the upbeat readouts of the Trump-Xi call, the Justice Department announced the latest in a list of actions against what the Trump administration calls China's cheating through intellectual property theft, unfair corporate subsidies and rules hampering United States corporations in China.

More news: Turkish-US Patrols of Syria's Manbij May Start 'Today or Tomorrow'

The Chinese president was also quoted as saying that he was willing to meet Trump in Argentina during the G-20 summit.

China has repeatedly questioned the U.S.'s sincerity in trade talks, wary of agreeing to something only to have Trump change his mind.

Trump said the American economy is doing well and he has been receiving congratulatory message from across the world.

The last round of trade talks with China ended in August with no concrete steps toward reaching a deal.

"Look, there's no massive movement to deal with trade", Kudlow said.

It was "hard to know what Trump wants most from China" because of a fragmented administration that had yet to strike a balance among the priorities of various vested interest groups, he said.

Trump's posture toward China has been closely watched by investors, who are looking for the possibility of tensions cooling.

On Thursday Chinese Premier Li Keqiang also told a group of visiting USA politicians that China and the United States could overcome their differences and get relations back on track if they worked together in a spirit of mutual respect.

Related Articles