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Trump predicts finalized trade deal with China to be close

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Trump predicts finalized trade deal with China to be close

White House economic adviser Larry Kudlow downplayed reports President Donald Trump may implement more tariffs on China as the two nations' trade battle escalates.

The leaders of the world's two largest economies made the remarks after their first publicly disclosed telephone conversation in nearly six months. If the policy talks go well, then we'll have a much better situation.

"I think we'll make a deal with China and I think it will be a very fair deal for everybody", he added. "We are having very good discussions with China".

In an interview on Fox News Channel's "The Ingraham Angle" show on Monday, Trump did not specifically mention the potential withdrawal of tariffs, but said he expects "a great deal" with China.

Though final decisions have not been made, USA officials are preparing for such a scenario in case a planned Trump-Xi meeting yields no progress on the sidelines of a Group of 20 summit in Buenos Aires in November, according to the report. China also said that the telephone conversation was "positive". "They very much want to make a deal", President Trump said.

President Trump said that if a deal is not made with China, he could impose tariffs on another $267-B in Chinese imports into the United States, adding that China's economy had "been hit very hard" by previous U.S. tariffs. An early-December announcement of a new product list could make the effective date-after a 60-day public comment period-coincide with China's Lunar New Year holiday in early February.

Kudlow said there was no specific trigger point for a decision to impose more tariffs on Chinese goods. The United States has targeted $250 billion in Chinese products, and Beijing has lashed back by slapping tariffs on $110 million worth of USA goods. Attorney General Jeff Sessions will announce a new initiative in response, according to a Justice Department official.

"Xi noted in the conversation that China has repeatedly made clear its stance on bilateral ties, and hopes that both countries will promote a healthy, stable development of bilateral ties", Xinhua said of the call.

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