Trump says tariffs will stay on until China complies with a deal

The Associated Press

The Associated Press

President Donald Trump says if the USA gets a trade deal with China, tariffs could stay in place for some time to ensure Beijing "lives by the deal".

Trump and Netanyahu have enjoyed a close relationship and Trump has been applauded in Israel for recognizing Jerusalem as their capital and moving the U.S. Embassy there.

Trump also said the trade talks were "coming along nicely".

United States stocks have fallen after President Donald Trump said his administration was considering leaving tariffs on China for a "substantial period".

Top American trade negotiators are due to travel to Beijing next week for a fresh round of talks, and officials have said they were in the final stages of negotiations on resolving the eight-month trade war with China.

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Trump initially said he expected to seal any final bargain at a summit with Chinese President Xi Jinping later this month but that expectation has faded as momentum in the talks has slowed.

President Trump will host Israeli Prime Minister Benjamin Netanyahu at the White House during his visit to Washington next week, a trip that comes just weeks ahead of the embattled leader's bid for reelection next month. His negotiators have demanded that China agree to an enforcement mechanism to ensure that Beijing follows through on any reform pledges in any deal.

Washington and Beijing are battling over the final shape of an agreement, with American officials demanding profound changes to Chinese industrial policy. China has hit back with tariffs on about $110 billion worth of USA goods, including soybeans and other commodities.

The president's comments dim hopes that round-the-clock trade negotiations between the world's two biggest economies could lead to them removing the roughly US$360 billion in tariffs they have imposed on each other's imports.

Later on Wednesday, during a speech in Lima, Ohio, Trump emphasized again that he wanted the United States to reach a "great" trade deal with China. "If it's not a great deal, you never catch up", Trump said in remarks at a military tank manufacturing plant.

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