US President Donald Trump has complained yet again about "STUPID TRADE" with China, doing little to calm investors anxious about the escalating trade conflict between the two economic superpowers.
In a tweet on Monday morning Trump said that when a Chinese-made vehicle is sent to the US, the tariff is only 2.5 per cent, while American cars exported to China are slapped with a 25 per cent tariff.
Trump asked, "Does that sound like free or fair trade." Then answered, "No, it sounds like STUPID TRADE."
China charges total duties of 25 per cent on most imported cars - a 10 per cent customs tariff plus a 15 per cent car tax. Since December 2016, Beijing also has charged an additional 10 per cent on "super-luxury" vehicles priced above 1.3 million yuan ($US200,000).
Trump's top economic advisers have offered mixed messages as to the best approach with China. Beijing has threatened to retaliate if Washington follows through with its proposed tariffs, even as Trump emphasised his bond with Chinese President Xi Jinping.
"President Xi and I will always be friends, no matter what happens with our dispute on trade," Trump tweeted on Sunday. "China will take down its Trade Barriers because it is the right thing to do. Taxes will become Reciprocal & a deal will be made on Intellectual Property. Great future for both countries!"
But Trump did not explain why, amid a week of economic sabre-rattling between the two countries that shook global markets, he felt confident a deal could be made.
Meanwhile his top economic adviser said on Monday Trump may be open to forming an international coalition to grapple with Chinese trade issues, adding that it remained unclear whether the proposed US tariffs on China would eventually materialize.
Asked whether Trump would consider seeking the support of European nations, Japan and others, White House National Economic Council director Larry Kudlow told CNBC: "The president is amenable to that. He's not necessarily out soliciting support yet, but he is amenable."
