US Prez weighs rejoining TPP over China trade threat
President Donald Trump told lawmakers he is considering rejoining the Trans-Pacific Partnership, the free-trade deal he withdrew from shortly after taking office, as he expressed confidence the U.S. is headed toward resolving trade conflicts without economic disruption.
A week after escalating tensions with his threat to impose tariffs on an additional $100 billion in Chinese products, Trump said Thursday the two countries ultimately may end up levying no new tariffs on each other.
“Now we’re really negotiating and I think they’re going to treat us really fairly,” Trump said during a White House meeting with Republican governors and lawmakers from farm states. “I think they want to.”
The remarks were another conciliatory signal from the administration following tit-for-tat tariffs proposals from the world’s largest two economies that rattled markets. Trump also indicated that talks are progressing toward successful renegotiation of the North American Free Trade Agreement.
The S&P 500 Index and Dow Jones Industrial Average were both up more than 1 percent at 3:30 p.m. as investors assessed the changing trade dynamics.
After reporters left the room, Trump told the lawmakers he deputized economic adviser Larry Kudlow and U.S. Trade Representative Robert Lighthizer to explore re-entering the Asia-Pacific trade accord. Senator Ben Sasse told reporters of Trump’s remarks on the TPP after the session.
“He multiple times reaffirmed the point that TPP might be easier to join now,” said Sasse, a Nebraska Republican who participated in the meeting with Trump.
The White House later confirmed Sasse’s account.
