Trump undermines his own
trade success with China
On Monday, President Trump praised his “extraordinary”
meeting with Chinese leader Xi Jinping over the weekend, saying that
relations with China had taken a “BIG leap forward” despite the ongoing
trade war between the two nations.
The men held a working dinner
Saturday in Buenos Aires, where they were attending the G-20 summit, and
hammered out what seemed like a straightforward agreement. The United
States delayed raising some tariffs on Chinese goods for 90 days, allowing
the two sides more time for trade talks. In return, the Chinese agreed to
purchase more American goods, thus lowering the U.S.-China trade deficit
that Trump abhors.
It seemed that many people shared
Trump’s optimism: American stock markets rallied on Monday, with investors
heartened by the idea of a 90-day truce in the economic battle between
Washington and Beijing.
But the optimism was short-lived. By
the next day, confusion was mounting about what Trump and Xi actually
agreed to during their working dinner on Saturday in Buenos Aires. And it
wasn’t just the markets that seemed baffled, but also the very people who
participated in the dinner and negotiated the agreement.
“After the talks ended Saturday
evening, it took the White House three hours to release a two-page
statement on the outcome,” wrote my colleague David J. Lynch for Today’s
WorldView. “The delay gave China’s state-run media a head start in shaping
the global understanding of what had transpired.”
Bloomberg News compared
the statements released by both sides after the meeting and found two
“parallel and rarely overlapping” messages. “The U.S. listed what China had
agreed to in exchange for a 90-day pause in raising tariffs on Chinese
goods, while Beijing focused on the broad reduction in trade tensions,
without going into specifics,” Peter Martin wrote.
As The Post’s Anna Fifield
reported from Beijing, Chinese state media made no mention of various
aspects of the deal that were touted by the Trump administration, from the
90-day time frame or a reduction in tariffs on imported U.S. cars. Instead,
Chinese news outlets and officials suggested there had been only
incremental progress made — more a cautious step than a big leap forward.
“I only want to stress that the two
leaders reached important consensus and the teams on the two parts will
follow through on the consensus,” Chinese Foreign Ministry spokesman Geng
Shuang told reporters.
It soon became apparent that there
was skepticism within Trump’s own Cabinet. Trump bragged
specifically about China agreeing to lift its 40 percent tariff on U.S.
auto imports, but White House National Economic Council Director Larry
Kudlow told reporters in a call on Monday that
“we don’t yet have a specific agreement on that.”
White House trade adviser Peter
Navarro also offered no confirmation of any tariff-reduction agreement when
he spoke to NPR, saying
only that auto tariffs “certainly came up” in discussions.
By Tuesday, even Trump was
contradicting Trump. In a series of tweets, he abruptly
reversed his optimistic assessment of the meeting with Xi, reminding the
world that he was a “Tariff Man” and demanding that foreign countries pay
for “the privilege” of raiding America’s wealth.
This dismay was clearly enough to
spook investors and analysts. By midafternoon, the Dow Jones industrial
average had plunged more than 600 points.
Despite Trump’s pessimistic tone on
Tuesday, his meeting with Xi does appear to have had some positive results.
Bloomberg’s John Authers identified a stronger Chinese
yuan — the currency rose following the meeting — as a development
that’s in both Washington’s and Beijing’s interests.
Still, Trump’s
negotiating style has once again been laid bare. He has over-promised and
under-delivered, rushed to offer judgment on things that are in the early
stages of negotiation and ping-ponged from friendly messages to threats —
all within barely 48 hours. One former official
said the president’s antics had puzzled and angered his Chinese
counterparts.
“You don’t do this with the
Chinese. You don’t triumphantly proclaim all their concessions in public.
It’s just madness,” the former official told The Post.
It’s becoming a familiar pattern —
not just in trade negotiations, but also in still-unresolved matters
of national security like North Korea. “Do we have another Singapore
summit, where the North Korean delegation went home with a very different
set of perspectives?” was the question that Paul Haenle of the
Carnegie-Tsinghua Center in Beijing put it to The Post.
And in the case of China, the
effects are immediate. “Investors are losing patience with the confusion,”
wrote Lynch, the Post’s global economic correspondent. “It’s not a pretty
picture, and it won’t change any time soon.”
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