Trump says Xi ‘extremely hard' to make deal with as steel levies double

Qatar Tribune

2 days ago

Agencies
U.S. President Donald Trump said Wednesday it was 'extremely hard' to make a deal with Chinese counterpart Xi Jinping – amid reports they might talk later this week – and as he continued to ramp up his global trade war by doubling tariffs on steel and aluminum imports.
The comments and higher levies came as the Organisation for Economic Co-operation and Development (OECD) ministers gathered to discuss the outlook for the world economy in light of the U.S. hardball approach to trade that has rattled world markets.
Trump's sweeping tariffs on allies and adversaries have strained ties with trading partners and sparked a flurry of negotiations to avoid the duties.
The White House has suggested the president will speak to Xi this week, raising hopes they can soothe tensions and speed up a trade deal between the world's two biggest economies.
However, in the early hours of Wednesday, Trump appeared to dampen hopes for a quick deal.
'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' he posted on his Truth Social platform.
China was the main target of Trump's April 2 tariff blitz, hit with levies of 145% on its goods and triggering tit-for-tat tariffs of 125% on U.S. goods.
Both sides agreed to temporarily de-escalate in May, after the U.S. president delayed most sweeping measures on other countries until July 9.
His latest remarks came hours after his tolls on aluminum and steel were doubled from 25% to 50%, raising tensions with various partners, while exempting Britain from the higher levy.
U.S. Trade Representative Jamieson Greer held talks with EU trade commissioner Maros Sefcovic on the sidelines of the OECD meeting, a 38-nation grouping of mostly developed countries.
With the 27-nation EU facing the threat of 50% tariffs on its goods taking effect next month, Sefcovic said he had 'a productive and constructive discussion' with Greer.
'We're advancing in the right direction at pace – and staying in close contact to maintain the momentum,' Sefcovic wrote on the X social media platform.
The EU had warned last month that doubling the metal tariffs would undermine efforts to find a negotiated solution.
The OECD cut its forecast for global economic growth on Tuesday, blaming Trump's tariff blitz for the downgrade.
'We need to come up with negotiated solutions as quickly as possible, because time is running out,' German Economy Minister Katherina Reiche warned.French Trade Minister Laurent Saint-Martin said: 'We have to keep our cool and always show that the introduction of these tariffs is in no one's interest.' Canada, the largest supplier of metals to the United States, has called Trump's tariffs 'illegal and unjustified.'
After talks between U.K. Trade Secretary Jonathan Reynolds and Greer on Tuesday, London said imports from the U.K. would remain at 25% for now. Both sides needed to work out duties and quotas in line with the terms of a recently signed trade pact.
'We're pleased that as a result of our agreement with the U.S., U.K. steel will not be subject to these additional tariffs,' a British government spokesperson said.
The Group of Seven advanced economies – Britain, Canada, France, Germany, Italy, Japan and the United States – was due to hold separate trade talks on Wednesday.
Mexico will request an exemption from the higher tariff, Economy Minister Marcelo Ebrard said, arguing that it was unfair because the United States exports more steel to its southern neighbor than it imports.
'It makes no sense to put a tariff on a product in which you have a surplus,' Ebrard said.
Mexico is highly vulnerable to Trump's trade wars because 80% of its exports go to the United States, its main partner.
While some of Trump's most sweeping levies face legal challenges, they have been allowed to remain in place for now as an appeals process takes place.
White House press secretary Karoline Leavitt confirmed Tuesday that the Trump administration sent letters to governments pushing for offers by Wednesday as the July 9 deadline approached.