On Sunday, president-elect Donald Trump spoke on the phone with Chinese President Xi Jinping. So far, it’s looking like the meeting didn’t go so well…
During his campaign, Donald Trump threatened to impose a 45% import tariff on all Chinese commodities. According to Fox News, analysts believe that the Chinese have already fired off a warning shot in response. In a not-so-veiled threat, Chinese media have suggested that Beijing could hinder American imports if the U.S. imposed higher tariffs. The consequences of this would be disastrous, as evidenced by an editorial published in the Global Times:
“Large orders for Boeing planes would switch to Europe, U.S. auto sales in China would face setbacks, Apple phones would essentially be crowded out, and U.S. soybeans and corn would be eradicated from China.”
Although it’s still too early to tell, this could very well spell the beginning of a trade war. And the worst part about trade wars is that both economies suffer. There are no winners, only losers.
On the bright side, both parties are being cordial with one another. President Xi Jinping congratulated Trump on his recent victory. He further expressed that cooperating with one another was the “only choice” for positive relations between China and U.S.
Trump reportedly thanked President Xi Jinping for congratulating him on the big win. Trump’s office even released a statement on Monday, claiming that:
“During the call, the leaders established a clear sense of mutual respect for one another and President-elect Trump stated that he believes the two leaders will have one of the strongest relationships for both countries moving forward.”
And even though the Global Times is wary of Trump’s previous threats, the news site does believe he will eventually come around.
“Trump, coming from a business background, is very astute. We do not believe he will treat China-U.S. trade so childishly,” the publication wrote.