Donald Trump: U.S. in a 'little squabble' with China

Markets calm amid hopes for US-China talks

Trump says deal with China will happen ‘when the time is right, US needs to 'make up' ground first

Among the 3,805 categories of Chinese imports that would be newly subject to a 25 percent tariff are cellphones, computers, and other consumer electronics, the trade representative said, adding that pharmaceuticals, certain medical products, rare-earth and "critical" minerals would be exempt from the new duties. "My respect and friendship with President Xi is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn't make any sense".

"But he's for China and I'm for the USA".

On Friday, Trump had issued orders for the tariff increase, asserting that China "broke the deal" by reneging on earlier commitments made during negotiations.

Trump insisted the tariffs the U.S. has placed on Chinese goods don't hurt American consumers, saying there is "no reason for the U.S. Consumer to pay the Tariffs". Wall Street responded with a 600+ point drop to start the week. And our government is very happy because we're taking in tens of billions of dollars.

Earlier on Monday, Trump had said China should not retaliate because "things could only get worse", however, just hours later China unveiled its new round of tariffs in a tit-for-tat move against the United States which had imposed $200 billion worth of Chinese goods in the midst of the trade war last week. There can be some retaliation, but it can't be very very substantial by comparison.

"Our farmers will be very happy", said Trump. "We had a deal, 95 percent was there".

Trump's reality with regard to China, which he explained to reporters at the White House Tuesday, might be more believable if China were the only nation with which Trump was tangling.

Trump has touted his relationship with Xi, and said Monday he will meet with the Chinese premier during the G20 summit in Osaka, Japan at the end of June.

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