President Donald Trump on Wednesday defended his tariff approach with China by saying American children might end up with fewer toys — and the toys they do end up with might cost more.
During a Cabinet meeting at the White House, Trump was asked if he had spoken with Chinese President Xi Jinping, and the commander-in-chief contended that China’s factories “aren’t doing business.”
“They made a trillion dollars with [former President Joe] Biden … selling us stuff … much of it we don’t need,” Trump said. “Somebody said, ‘Oh the shelves are going to be open.’ Well, maybe the children will have two dolls instead of 30 dolls.”
“Maybe the two dolls will cost a couple bucks more than they would normally,” he added.
In recent weeks, there have been growing fears that a prolonged US-China trade war will cause major supply chain issues, as Trump earlier this month slapped 145% tariffs on Chinese goods.
China responded by upping the tariff rate on US goods to 125%, but on Wednesday, Reuters reported that the Chinese government has quietly exempted some products from the sky-high tariffs. The exact details of the exempted products are not yet clear.
Many economists have been critical of the Trump administration’s trade plan, questioning the approach that the president has taken with most countries — as well as the more hardline stance that it has taken with China.
Last Thursday, China said it had not yet engaged with the US in trade talks.
“China’s position is consistent, and we are open to consultations and dialogues, but any form of consultations and negotiations must be conducted on the basis of mutual respect and in an equal manner,” Commerce Ministry spokesman He Yadong said at the time.
Treasury Secretary Scott Bessent told ABC News on Sunday that he felt there was a “path” to resolve the trade clash with China.
“The first path will be a de-escalation, which I think the Chinese are going to have to have,” he said. “A trade deal can take months, but an agreement in principle and the good behavior and staying within the parameters of the deal by our trading partners can keep the tariffs from ratcheting back to the maximum level.”
A White House spokesperson didn’t immediately respond to a request for comment.
