Friday , October 22 2021

Secretary of Commerce Wilbur Ross foresees trade agreement between Trump and China


Trade Secretary Wilbur Ross of CNBC predicted Tuesday that the US and China will eventually successfully negotiate a trade deal.

"Eventually, that will end in negotiation," Ross said in an interview with Squawk Box. "Even the shooting wars end in negotiations."

With questions circulating about whether President Donald Trump and Chinese leader Xi Jinping would meet at the G20 meeting later this month, the US president told CNBC on Monday he would place additional tariffs on Chinese products if Xi did not show up .

"The deal with China will work, you know why? Because of the tariffs," Trump said in a "Squawk Box" call with CNBC's Joe Kernen. "At the moment, China is being totally decimated by the companies that are leaving China, going to other countries, including ours, because they do not want to pay the tariffs."

Ross, who spoke in favor of President Trump's pricing strategy, warned that trade agreements are not at the top. Any conversation between Trump and Xi would lay the groundwork for a possible deal.

In May, Trump raised the $ 200 billion tariffs on Chinese goods and threatened to put other rates at $ 300 billion, effectively the rest of China's imports into the United States.

An agreement with China would have to fix all the violations the US claims, otherwise making a deal would not make any sense, Ross said, before joining the White House, he made a fortune in the investment world by running W.L. Ross & Co., and purchase of stakes in troubled assets.

"We'll either collect more and more tariffs on more and more products or make deals with them," Ross said, warning investors not to be "very happy" when Trump threatens tariffs.

After the president warned Mexico on May 30 that he would put a 5% tariff on Mexican products if he did not take steps to prevent undocumented immigrants from entering the US, Ross said that "people were getting hysterical" and markets "a little nervous." The day after the announcement of proposed rates, the Dow Jones Industrial Average plunged more than 350 points.

"Judge this administration for the results," Ross said. "Do not judge by interim phrases." On Friday, the president canceled Mexico's tariffs, saying that the United States and Mexico agreed to comply with previous concessions they had made on immigration.

In Monday's CNBC interview, Trump said the deal came in just two days because Mexican leaders knew the alternative would have been worse.

"We have everything we wanted and we will be a great partner for Mexico now, because now they respect us," argued Trump. "They did not even respect us, they could not believe how stupid we were with everything that's going on, when someone comes from Mexico and walks straight to our country and we're powerless to do anything."

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