US, China trade deal will happen by end of the summer: Scaramucci
Trade talks between the U.S. and China have seemingly hit a roadblock, but Chinese Ambassador to the United States Cui Tiankai told Fox News on Tuesday that his country is ready to resume negotiations.
“China remains ready to continue our talks with our American colleagues to reach a conclusion,” he said. “Our door is still open.”
The Trump administration has slapped 25 percent tariffs on $250 billion worth of Chinese imports, while China has responded with tariffs of their own.
Anthony Scaramucci, former White House Communications Director and SkyBridge Capital managing partner, said that he thinks a deal will get done within the next few months.
“They have to get a deal. So this is one of those things where I’m hoping the rational players and the rational minds come together. Both parties actually would benefit from a deal,” he told FOX Business' Kennedy on Tuesday. “It would be good for the global economy. It would be good for both parties to reset some of the imbalances, if you will. So I would be very, very surprised if they don’t get a deal done by the end of the summer.”
President Trump has threatened to impose tariffs on the remaining $300 billion in goods that the US imports from China every year. Goldman Sachs recently released a report estimating that if the President implements those final tariffs, it could lower earnings for US companies by 6 percent.
“It’s hard for the smaller businesses,” Scaramucci said. “The larger businesses can hold their own.”
It’s not only businesses that are hurting. Goldman Sachs has also shown that consumer prices in categories affected by tariffs have risen much higher than the prices of goods not affected by tariffs.
“The consumer is paying the tariff. Larry Kudlow admitted that,” Scaramucci said. “It’s not a great thing for the United States.”
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Still, Scaramucci said that markets are signaling that a deal will get done soon.
“There’s tension there. But again, I think they’re rational players. The Chinese have a tendency to re-trade at the last minute. … I don’t think that they want to go into a protracted trade war, despite the rhetoric,” he said.