- In a press conference on Monday, President Donald Trump reiterated that a new 100% tariff on Chinese imports could take effect on November 1 if no trade deal is reached.
- The president suggested Boeing aircraft parts could be used as leverage in future trade negotiations.
- Trump said he expects to meet Chinese President Xi Jinping during his South Korea visit to finalize a “fair and great” trade deal.
President Donald Trump on Monday warned that China would be in “big trouble” if it stopped doing business with the U.S. ahead of his upcoming visit to South Korea to meet Chinese President Xi Jinping.
“If they don’t want to do business with us, I think China’s in big trouble,” Trump told reporters following a bilateral meeting with Australian Prime Minister Anthony Albanese. “If they don’t, they’re going to be paying us 157% in tariff.”
“We’ll see what happens. I’ve said if we don’t make a deal, I’m putting on an addition 100% [tariff] on November 1.”
– U.S. President Donald J. Trump
Using Boeing As A Negotiating Tactic
The President said China had “threatened [the U.S.] with rare earths,” but stated that tariffs were more powerful negotiating tools. “I could also threaten them with many other things,” he said. “They can’t get parts for their airplanes. We build their airplanes. We do a great job.”
Trump added that most of China’s commercial fleet relied on Boeing (BA) components. “They’re largely Boeing’s, and we could stop the parts. We did stop the parts,” he said, claiming that prior restrictions had grounded hundreds of aircraft.
Boeing’s stock gained around 1.3% in midday trade on Monday. On Stocktwits, retail sentiment around the stock trended in ‘bearish’ territory.
The Soybean Story
Trump reiterated that restoring U.S. agricultural exports, particularly soybeans, remained a key trade priority. “They stopped buying our soybeans because they thought that was punishment,” he said. “I made a great trade deal with China, a $50 billion trade deal. Then when Biden came in, he didn’t know what he was doing.”
The President said he expects to negotiate a “fantastic” new deal that benefits both sides, describing it as “great for both countries, and great for the entire world.” His comments come after he listed rare earths, fentanyl, and soybeans as the America’s top three issues with China on Sunday.
On Monday, Trump added that discussing China’s territorial ambitions regarding Taiwan may also be on the agenda when he meets with Jinping in South Korea.
Trump Meeting Xi Jinping
Trump confirmed plans for a regional tour that includes visits to Malaysia, Japan, and South Korea, where he is expected to meet President Xi. “I think when we finish our meetings in South Korea, China and I will have a really fair and really great trade deal together,” he said.
The President added that’s he’s been invited to visit Jinping in China as well, which he expects will happen early next year.
Meanwhile, U.S. equities were in the green during midday trade on Monday. The SPDR S&P 500 ETF (SPY) was up 1.09%, the SPDR Dow Jones Industrial Average ETF (DIA) rose 1.05%, and the Nasdaq-100 tracking Invesco QQQ Trust (QQQ) rose 1.40% higher. Retail sentiment around QQQ on Stocktwits dipped lower within ‘extremely bearish’ territory amid ‘high’ levels of chatter over the past day.
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