Trump “If China doesn't negotiate, the US will decide…Possibility of tariff reduction is open”

Tariff negotiations and interest rate pressures, President Donald Trump of the United States clarifying his stance on leading the overall economy, including cryptocurrency regulations (Source: Reuters)

President Donald Trump of the United States suggested that the U.S. holds the initiative in trade negotiations with China and that if negotiations are successful, the currently imposed high tariffs may be significantly reduced. However, he drew a line stating there would be no complete exemption as in the past.

On the 22nd (local time), President Trump met with reporters after the inauguration ceremony of Paul Atkins, Chairman of the SEC, held at the White House, and emphasized, “If China does not come to the negotiations, the U.S. will set the terms and figures of the deal,” asserting that the U.S. decision will be the standard. He added, “We are doing well with China and maintaining good relations with almost every country.”

Regarding the 145% tariff currently applied to Chinese products, President Trump evaluated it as a “very high number,” explaining that it is a result of accumulated issues like Fentanyl. He further mentioned, “If an agreement is reached, this tariff rate will be significantly lowered but will not reach 0%,” also mentioning that the past duty-free system harmed the U.S. economy.

When asked whether he plans to mention the COVID-19 issue in negotiations with China, he bluntly said, “I will not mention it.”

Regarding interest rate policy, President Trump expressed dissatisfaction with Federal Reserve Chairman Jerome Powell's reluctance to lower interest rates. He said, “I do not intend to dismiss Powell, but I wish he would move more quickly on lowering rates.” Previously, President Trump had publicly criticized Chairman Powell by calling him “Mr. Too Late” for delaying rate decisions.

Nevertheless, he pacified market anxiety by stating, “Although it's a transitional situation, the U.S. economy is doing well.”

At the event, President Trump also mentioned Chairman Atkins of the SEC. He called Atkins “the most suitable person” at a time when the cryptocurrency industry needs clear regulations and identified him as the right person to establish a regulatory framework for digital assets. Chairman Atkins also emphasized in his inaugural remarks that “laying a regulatory foundation based on consistent principles is the top priority.”

President Trump's remarks are interpreted as a message suggesting that the U.S. is setting the direction of negotiations anew amid concerns that U.S.-China trade negotiations are at a stalemate.