Wilbur Ross lowers expectations of trade deal coming from G-20 talks between Trump, Xi

Discussion in 'Wall St. News' started by SteveM, Jun 17, 2019.

  1. SteveM


    • Speaking to CNBC’s Phil LeBeau at the Paris Airshow Monday, Commerce Secretary Wilbur Ross said enforcement would be the most important element of any potential deal between the world’s two largest economies.
    • Ross played down the prospect of an agreement being reached at the G-20 meeting in Osaka on June 28-29, where Trump and Chinese President Xi Jinping are expected to be in attendance.

    President Donald Trump is ready to proceed with tariffs on the remaining $300 billion in Chinese goods in the absence of a trade deal, according to U.S. Commerce Secretary Wilbur Ross.

    Speaking to CNBC’s Phil LeBeau at the Paris Airshow Monday, Ross said enforcement would be the most important element of any potential deal between the world’s two largest economies.

    “We will eventually make a deal, but if we don’t, the president is perfectly happy with continuing the tariff movements that we’ve already announced, as well as imposing the new ones that he has temporarily suspended,” Ross said.

    Trump unexpectedly accused China of reneging on a deal early last month and announced that tariffs on $200 billion worth of Chinese goods would increase to 25% from 10% on May 10. Beijing retaliated, raising levies on $60 billion worth of U.S. products. Releasing a much-anticipated white paper in early June, China said the global trade problems were started by the United States and claimed Washington had been unreliable during talks.

    Ross played down the prospect of an agreement being reached at the G-20 meeting in Osaka on June 28-29, where Trump and Chinese President Xi Jinping are expected to be in attendance.

    He said the G-20 was not a place “where you’re going to negotiate a 2,500 page agreement,” adding that “there may be an agreement on the path forward, but that’s about as far as we can expect it to go.”

    Ross also indicated that Washington was prepared to deploy tariffs on auto imports in order to pressure foreign carmarkers into manufacturing on U.S. soil.

    “The U.S. market is the healthiest auto market in the world right now. The Chinese market has been crumbling, European market is stumbling as well,” he said.

    “In the American market, the big cars are what sell best in the States, and those are the highest profit margin cars, so there is a big logic, independently of what actions we are taking on trade, for more capital investment by foreign makers in the U.S. We are just accelerating that with the potential tariffs.”

    Ross added that the U.S. president was “giving very serious thought” to putting tariffs an all auto imports, including those from the European Union.

  2. Trump wants a big trade concession agreement with China... in time for the 2020 election. Doubt he'll get it. #1, China has the advantage and does not want to give it up, and #2, Xi has "all day". He's not under any date deadline and can wait things out. Trump needs a deal so he can claim such and save face.... but it won't be on items China regards as important to them, and it won't be significant in $$ concessions.

    When history looks back on this it's likely to say, "Bush and Obama gave away the farm, and China isn't giving it back".
  3. zdreg


    It's time to move on. Trump should be more concerned about the productivity of American workers. He may talk about America never becoming socialist but he has to take concrete steps to make the country more capitalist. Young Americans don't have a clue about free markets and capitalism. With his unfriendly demeanor and rough edge don't be surprised if we end up with the next president being a left wing extremist.
    Overnight likes this.
  4. No history book will ever say a disparaging word of Obama.
    By the time your grandkids are in grammar school he will be universally hailed as the greatest POTUS ever.
    Overnight and smallfil like this.
  5. smallfil


    If China wanted a deal, they can come to the table and sign it anytime. Problem is they want tariffs on US products and they have done so, way, way before this trade war. They have sought trade advantages and corrupt RINO and Democrat liberal politicians gave it to them! Now, that is over! For all the talk of China winning the trade war on liberal media, more and more evidence of the Chinese economy starting to experience the adverse effects of the trade war and there is $300 billion more in Chinese products the US can slap that 25% tariffs. Here is one more effect of the trade war. This is more severe as it involves food and everyone has to eat!

  6. zdreg


    Trump will be remembered as opening the door to socialism and economic decay in the US.
  7. Likely true. America's genius Founders will all but be forgotten.

  8. vanzandt


    3D chess:

    China's Xi to Meet North Korea's Kim in Pyongyang Ahead of G-20
    Bloomberg News
    June 17, 2019, 7:27 AM EDT Updated on June 17, 2019, 8:20 AM EDT
    • Xi to visit Pyongyang June 20-21, state news agencies report
    • Talks take place ahead of G-20 summit next week in Japan

    Chinese President Xi Jinping will travel to North Korea on Thursday for talks with Kim Jong Un, state media in Beijing and Pyongyang reported.

    The state visit will take place on June 20-21, China’s official Xinhua News Agency and the Korean Central News Agency reported Monday, without elaborating.

    This will be Xi’s first visit as Chinese leader to North Korea and the first by China’s top official in about 14 years to the impoverished state that depends on Beijing for economic support. It comes ahead of next week’s Group of 20 summit in Japan that’s expected to be attended by Xi and U.S. President Donald Trump as well as Russian leader Vladimir Putin.

    “This trip to North Korea is part of China’s strengthening of neighboring diplomacy against the backdrop of a China-U.S. trade war,” said Wang Sheng, professor of international politics of Jilin University. “The move is also intended to make it clear to the United States that China’s role cannot be overlooked, whether it is in Northeast Asia or a multinational occasion as the G-20.”

    The visit comes after a Feb. 28 meeting between Kim and Trump collapsed in Hanoi, in a fight over the U.S.-backed sanctions that are pressuring North Korea’s economy. Beijing is North Korea’s biggest backer, and Xi’s visit continues a pattern of close coordination between the neighbors during negotiations with the U.S. over Pyongyang’s nuclear program.

    Kim last month oversaw a live-fire military exercise that potentially included North Korea’s first ballistic missile launch since 2017, while stopping just short of challenging Trump’s bottom line by continuing a moratorium on intercontinental ballistic missile firings and underground nuclear tests.

    Nuclear Weapons
    Even so, despite Trump’s frequent praise of Kim -- declaring last week that the dictator had sent him a “beautiful letter” -- there’s no evidence a year after their first meeting that North Korea has made a strategic decision to give up its nuclear weapons program, according to people familiar with the talks.

    Xi’s visit may contribute to the early reopening of denuclearization talks, South Korea’s presidential spokeswoman Ko Min-jung said Monday.

    Trump and his aides contend that sanctions continue to bite, even if enforcement may have loosened, particularly along the border with China. And the president believes that as long as North Korea isn’t testing long-range, nuclear-capable missiles, the threat is vastly reduced.

    Kim visited China three times in 2018, including in June, a week after his first summit with Trump. In January this year, just a month before his second summit with Trump, Kim and his wife Ri Sol Ju went to Beijing. That trip laid the ground for his subsequent meeting with the U.S. president.

    Russian Foreign Minister Sergei Lavrov and his South Korean counterpart Kang Kyung-wha held talks in Moscow Monday and discussed the situation on the Korean Peninsula.

    — With assistance by Dandan Li, and Jihye Lee
  9. Forgotten will be the best case.
    They will be known as murderers and rapists if the Libs get their way
  10. DaveV


    Actually they were murderers and rapists. But, at the time, their acts were either legal or unenforced.
    #10     Jun 17, 2019