President Trump says he will not drop the new tariffs he imposed on China to jump-start trade negotiations.
China’s Commerce Ministry said late last week that if the Trump administration is serious about trade talks, it will cancel the 145% tariff slapped on Chinese imports.
Asked whether he would meet the request, Mr. Trump said “no” in an interview recorded Friday with NBC News’ “Meet the Press.”
“Why would I do that?” Mr. Trump said.
Mr. Trump said China has been “getting killed” by the tariffs, suggesting Beijing will be forced to negotiate a more U.S.-friendly trade deal.
“They want to do business very much,” he said. “Their economy is really doing badly. Their economy is collapsing.”
The markets celebrated last week after the Chinese Commerce Ministry signaled it would be willing to cut a trade deal with the United States. It urged the Trump administration to put a hold on the tariffs to “demonstrate sincerity.”
Treasury Secretary Scott Bessent has said the tariff impasse between the world’s largest economies is unsustainable. He is confident Mr. Trump has the upper hand in the trade war because Beijing relies heavily on shipping cheap goods to the United States.
Indeed, China’s export-heavy economy is suffering. In April, Chinese factories experienced their most significant slowdown in more than a year.
U.S. retailers also face challenges,
“Many [businesses] front-loaded cargo in advance of the tariffs taking effect, but they have not been able to bring in everything all at once,” said Jonathan Gold, vice president of supply chains and customs policy at the National Retail Federation. “Retailers also slowed or paused holiday orders, especially from China because they cannot afford to pay the massive 145% tariff. This is especially true for Main Street retailers concerned about their future.”
“We continue to call on the administration to quickly negotiate trade deals and lift the harmful tariffs from American businesses and consumers,” Mr. Gold said.
Wall Street investors cheered the possibility of a thaw between the U.S. and China, with stocks trading higher Friday. The three major U.S. indexes rose about 1.5%.
They were also buoyed by a stronger-than-expected employment report, which said U.S. employers added 177,000 jobs in April, and the unemployment rate remained unchanged at 4.2%.
The employment increase was slightly below the revised total of 185,000 in March but beat forecasts of closer to 130,000.
Economists had braced for a low number due to uncertainty around Mr. Trump’s tariff plan, and declining consumer sentiment and gross domestic product to start the year.
However, the Bureau of Labor Statistics reported employment increases in health care, transportation and warehousing, financial activities and social assistance.
