Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Trump Suggests Second Thoughts About Trade War

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/25/2019 | 06:33am EDT

By Rebecca Ballhaus

BIARRITZ, France -- President Trump for the first time showed a glimmer of regret about escalating the U.S. trade war with China, after meeting with world leaders at the Group of Seven summit here who have largely decried his trade practices.

Asked during a breakfast with U.K. Prime Minister Boris Johnson whether he had any second thoughts about ramping up the trade war with the announcement of increased tariffs last week in response to new levies from Beijing, Mr. Trump told reporters: "Yeah, sure. Why not?" Pressed further, he added: "Might as well. I have second thoughts about everything."

While the comments stopped short of any serious retreat from the trade war, which economic experts say is slowing global growth and contributing to concerns about a possible recession, they marked the first time the president has struck a tone of ambivalence on his tariff regime, which have been his preferred way of conducting foreign policy over the past three years.

In the first two days of the G-7 summit, other leaders in attendance have called for an end to the trade war, saying it is damaging the global economy and weakening alliances. European Council President Donald Tusk, speaking at the summit on Saturday, said ending trade wars was "urgent and essential."

"Trade wars will lead to recession, while trade deals will boost the economy, not to mention the fact that trade wars among G-7 members will lead to eroding the already weakened trust among us," he said.

Mr. Trump, as he left Washington for France on Friday, threatened to tax French wine if President Emmanuel Macron moved forward with a tax on U.S. tech companies. In the past, he has repeatedly threatened to place tariffs on European cars.

Despite Mr. Trump's apparent contrition about rising tensions with China, he also again criticized Beijing's trade practices as "outrageous" and asserted his right to declare a national emergency on the matter, which the White House believes would give the president the authority to direct companies not to do business with China. On Friday, Mr. Trump in a series of tweets said he was ordering companies doing business with China to explore relocating -- a directive he currently lacks the authority to give.

Asked Sunday if he planned to declare a national emergency on China, Mr. Trump told reporters: "I have the right to," but didn't say whether he would pursue that course of action.

"When they steal and take our intellectual property...in many ways that's an emergency," he said, but added: "I have no plans right now." Mr. Trump said the U.S. was "getting along very well with China right now."

Mr. Trump also suggested tensions with China were helping the U.S. reach a trade deal with Japan, the announcement of which he said was imminent. On Sunday morning, he asked U.S. Trade Representative Robert Lighthizer whether he wanted to comment on the possibility of a deal with Japan. "Presumably, something will be announced after you meet with the prime minister," Mr. Lighthizer responded. "That's all I'm going to say." In his meeting with Japan's Shinzo Abe on Sunday, Mr. Trump said only: "We're discussing trade."

The president's decision to raise tariffs on China last week sent stocks and government bonds tumbling amid new concerns about global growth and the potential for a recession. Mr. Trump, asked whether he was concerned about the market on Sunday, said: "The market is doing great. Our country is doing great."

Mr. Trump disputed that other members of the G-7, which includes France, Germany, the U.K., Japan, Italy and Canada, were pressuring him to end the trade war. "I think they respect the trade war," Mr. Trump said, the morning after he met with the rest of the G-7 leaders at an opening dinner here. "Nobody has told me that, and nobody would tell me that."

Minutes later, Mr. Johnson said just that. "Just to register the faint, sheeplike note of our view on the trade war, we're in favor of trade peace on the whole, and dialing it down if we can," he told the president. "We don't like tariffs on the whole."

Other leaders at the summit have also been critical of the president's penchant for tariffs, including German Chancellor Angela Merkel, Canadian Prime Minister Justin Trudeau and Mr. Macron, who moments after Mr. Trump's arrival in Biarritz on Sunday intercepted him for an impromptu lunch. There, Mr. Macron sought to explain his position on contentious issues including global trade tensions.

Mr. Trump is set to hold bilateral meetings with Mr. Trudeau later Sunday and with Ms. Merkel on Monday.

The G-7 leaders found some areas of consensus on Sunday. During their dinner Saturday evening, they agreed on two main goals regarding Iran: Prevent Tehran from getting nuclear arms and find a path for dialogue, according to a close aide to Mr. Macron. Leaders decided it would be up to Mr. Macron, as G-7 president, to pass on the message to Iran, the aide said.

Mr. Trump, asked Sunday if he had signed off on a statement to Iran to be presented by Mr. Macron, Mr. Trump said he hadn't discussed it. He said he supported both Mr. Macron and Mr. Abe's outreach to Iran, but said: "We will do our own outreach, but I can't stop people from talking. If they want to talk, they can talk." The president has threatened to escalate sanctions on Iran and has tangled with Mr. Macron over how to navigate the issue.

Mr. Trump, asked Sunday whether he was on board with that approach, said he hadn't discussed it. The president has threatened to escalate sanctions on Iran and has tangled with Mr. Macron over how to navigate the issue.

U.S. officials said the G-7 leaders agreed the president's "maximum pressure" campaign on Iran was effective and should continue.

Earlier Sunday, the president lashed out against reports of tension between the U.S. and other G-7 members. "Before I arrived in France, the Fake and Disgusting News was saying that relations with the 6 others countries in the G-7 are very tense, and that the two days of meetings will be a disaster," he wrote. "Well, we are having very good meetings, the Leaders are getting along very well, and our Country, economically, is doing great - the talk of the world!"

Yet hours after Mr. Trump arrived in Biarritz, U.S. officials began privately criticizing Mr. Macron for his handling of the meeting, accusing his government of ignoring Washington's input ahead of the event and of focusing its agenda on "niche" issues, such as climate change and development in Africa, to appeal to the French president's political base.

Climate change was a major focus of last year's G-7, too, and other world leaders said the issue was a priority ahead of this year's summit, particularly as fires raging in the Amazon have prompted concerns about damage to the region's ecosystem and the global environment.

--Noemie Bisserbe contributed to this article.

Write to Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Economy & Forex"
05:18aHopes for trade breakthrough fade as China cancels U.S. farm visits
RE
05:12aNATIONAL PORK BOARD : Clearing the Way for New Opportunities
PU
04:52aCENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China to see bumper harvest of grains
PU
04:37aMINISTRY OF DEFENCE OF REPUBLIC OF AZERBAIJAN : Azerbaijan Defense Minister meets with the State Secretary of Security Council of Belarus
PU
04:11aSaudi Aramco has emerged from attacks 'stronger than ever' - CEO
RE
03:12aWHAT'S NEWS : Business & Finance -- WSJ
DJ
03:12aWHAT'S NEWS : World-Wide
DJ
01:37aNATIONAL PORK BOARD : In the House…
PU
12:37aDEPARTMENT OF AGRICULTURE OF REPUBLIC OF P : DA to impose general safeguards duty on rice imports
PU
09/20CENTRAL PEOPLE GOVERNMENT OF PEOPLE RE : China sees stable growth in natural gas production
PU
Latest news "Economy & Forex"