“A little squabble”: Trump downplays trade war with China

“A little squabble”: Trump downplays trade war with China

United States President Donald Trump has downplayed the US-China trade war following Beijing’s counter-tariff hike announcement, which saw over $US1 trillion wiped off stock values around the world yesterday.

“We’re having a little squabble with China because we’ve been treated very, very unfairly for many decades,” Mr Trump told reporters at the White House on Tuesday (local time).

“I think it’s going to turn out extremely well, we’re in a strong position.”

He described his relationship with Chinese President Xi Jinping as “extraordinary” and insisted that trade talks between the world’s two largest economies have not collapsed, despite his decision to impose further tariffs on all remaining Chinese imports worth $US300 billion ($432 billion).

“We have a very good dialogue going. It will always continue,” Mr Trump said, adding that Chinese officials “want to make a deal” but that the US will welcome the additional revenue from tariffs in the meantime.

“You want to know something? We always win,” he said.

Global equities tumbled yesterday after China announced it would slap tariffs of 5%-25% on $US60 billion worth of US goods, including frozen vegetables and liquefied natural gas.

Global markets rebounded overnight following Mr Trump’s comments, paving the way for Australian equities to regain some of Tuesday’s sharp losses.

The AUD is nearly at its lowest level against the Greenback in three years, holding steady at 69.4 US cents.

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