Berliner Boersenzeitung - Trump says deal with Xi 'extremely hard' as steel tariffs double

Trump's latest trade moves came as OECD ministers gathered in Paris to discuss the outlook for the world economy in light of a US hardball approach 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, early 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.

Asked about the remarks during a regular press briefing, Chinese foreign ministry spokesman Lin Jian said: "The Chinese side's principles and stance on developing Sino-US relations are consistent."

China was the main target of Trump's April tariff blitz, hit with levies of 145 percent on its goods and triggering tit-for-tat tariffs of 125 percent on US goods.

Both sides agreed to temporarily de-escalate in May, after Trump 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 percent to 50 percent, raising temperatures with various partners while exempting Britain from the higher levy.

US Trade Representative Jamieson Greer held talks with EU trade commissioner Maros Sefcovic on the sidelines of the meeting of the Organisation for Economic Cooperation and Development (OECD), a 38-nation grouping of mostly developed countries.

With the 27-nation EU facing the threat of 50-percent 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.

- Steel tariffs -

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 the metals to the United States, has called Trump's tariffs "illegal and unjustified".

After talks between UK Trade Secretary Jonathan Reynolds and Greer on Tuesday, London said imports from the UK would remain at 25 percent 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 US, UK 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 talks on trade 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 neighbour 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 percent 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.

burs-alb-lth/phz

(G.Gruner--BBZ)