Trump threatens higher tariffs if no trade deal with China

The two sides are still negotiating on a 'phase one' deal

The U.S. will raise tariffs on Chinese goods "even higher" if the two sides cannot finalize a trade deal, President Trump said Tuesday at the White House.

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The two sides struck a "phase one" agreement in October and had hoped to have the deal in writing last week, but are still negotiating.

"China's going to have to make a deal that I like. If they don't, that's it. I'm very happy with China right now," Trump said during a press spray at a cabinet meeting. "They're paying us billions and billions. If we don't make a deal with China, I'll just raise the tariffs even higher."

President Donald Trump speaks during a cabinet meeting at the White House, Tuesday, Nov. 19, 2019, in Washington. (AP Photo/ Evan Vucci)

He said he has a "good relationship" with China.

Beijing said Monday that the Vice Premier and chief trade negotiator Liu He had "constructive discussions" during a Saturday call with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

US, CHINA HOLD 'CONSTRUCTIVE DISCUSSIONS' AROUND CORE CONCERNS OF PHASE ONE DEAL, BEIJING SAYS

"The two sides have engaged in constructive discussions around the respective core concerns of the first phase of the agreement and will continue to maintain close communication," the Chinese Commerce Ministry said.

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