Brief Summary
This video discusses the complexities of the potential trade deal between the U.S. and China, highlighting President Trump's frustrations and strategies. It also touches on the implications of increased tariffs on steel and aluminum for U.S. allies and businesses.
- President Trump expresses frustration with China, making a trade deal difficult.
- The U.S. is keen for a call between Trump and President Xi, but China has not confirmed.
- Increased tariffs on steel and aluminum are pressuring allies and raising concerns for businesses.
Trump's Frustration with China
President Trump has expressed his frustration with China, stating that making a deal with them is "very tough and extremely hard." This comes after accusing Beijing of violating a previous agreement to roll back tariffs and trade restrictions. Despite the White House suggesting a potential call between Trump and President Xi, Beijing has not confirmed whether such a call has been arranged. The U.S. had previously imposed tariffs of up to 145% on Chinese goods, leading to retaliatory levies from Beijing on American goods.
U.S. Desire for Communication with China
The Trump administration is eager for President Trump and President Xi to speak, but China has not yet agreed to a call. Trump enjoys direct diplomacy and wants to show a win for his trade policy to the American people, particularly regarding the return of critical minerals from China to the U.S. Complimenting Xi is part of Trump's strategy to persuade the Chinese leader to agree to the call. Pressure is mounting on Trump to demonstrate progress in trade negotiations.
Impact of Increased Tariffs on Allies and Businesses
The doubling of tariffs on steel and aluminum is part of a pressure campaign, affecting U.S. allies and their respective industries. This move puts pressure on these countries to offer more concessions to the U.S. government in exchange for trade deals. The increased tariffs also raise concerns for businesses due to higher manufacturing costs, potentially worsening the U.S. economy despite Trump's intentions. Economists suggest that while the steel and aluminum industries may benefit in the short term, businesses relying on these metals will likely raise prices, negatively affecting more people in the long run.
