Washington: US President Donald Trump on Tuesday sought the Federal Reserve’s help to win the trade war against China, saying if America’s central bank lowers interest rates, the “game” would be over.
The trade war between the world’s two largest economies escalated on Monday with China slapping tariffs on USD 60 billion worth of US imports in a retaliation to Trump’s move to raise tariffs on USD 200 billion worth of Chinese goods.
In a Twitter storm against China after the collapse of the trade talks, which were in the final stages, Trump assured his countrymen that there would be no loss to farmers, a concern raised by several Senators.
He said America is winning this battle against the Asian giant.
“China will be pumping money into their system and probably reducing interest rates as always in order to make up for the business they are, and will be, losing. If the Federal Reserve ever did a ‘match’, it would be game over, we win! In any event, China wants a deal!” Trump said in a series of tweets on Tuesday.
Trump tended to dismiss concerns that American farmers would be majorly hit as a result of the retaliatory decision of China to impose tariff of US products, which are mainly agricultural products.
“Our great patriot farmers will be one of the biggest beneficiaries of what is happening now. Hopefully China will do us the honour of continuing to buy our great farm product, the best, but if not your country will be making up the difference based on a very high China buy…
“This money will come from the massive tariffs being paid to the United States for allowing China, and others, to do business with us. The farmers have been ‘forgotten’ for many years. Their time is now!” said the US President.
Trump said that as a result of his policies and the import tariffs he has imposed on Chinese products, billions of dollars and moving jobs back to the USA where they belong.
“Other countries are already negotiating with us because they don’t want this to happen to them. They must be a part of USA action. This should have been done by our leaders many years ago. Enjoy!” he tweeted.
Trump said the US is ready to make a deal, but for China.
“We can make a deal with China tomorrow, before their companies start leaving so as not to lose USA business, but the last time we were close they wanted to renegotiate the deal. No way!” he said.
The US is in a much better position now than any deal it could have made.
China, he said, buys much less from the US than Washington does from Beijing by almost USD 500 billion.
“So we are in a fantastic position. Make your product at home in the USA and there is no tariff. You can also buy from a non-tariffed country instead of China,” he said, adding that many companies are leaving China.
As a result they will be more competitive for USA buyers.
“We are now a much bigger economy than China, and have substantially increased in size since the great 2016 election. We are the ‘piggy bank’ that everyone wants to raid and take advantage of. NO MORE,” he tweeted.
Trump said that he will make a trade deal with China when the time is right.
“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.
“We have to be allowed to make up some of the tremendous ground we have lost to China on trade since the ridiculous one sided formation of the WTO. It will all happen and much faster than people think!” Trump added.