Following the implementation of new trade measures against China, which are set to take effect on November 1, US President Donald Trump made statements today that suggest a potential de-escalation of tensions.
President Trump expressed optimism, stating, "I think we will make a strong trade agreement with China." He further indicated that discussions would include the Taiwan issue during an upcoming meeting with Chinese President Xi Jinping in South Korea.
President Trump also commented on the financial impact of tariffs, noting that China has paid substantial amounts through these measures imposed by the United States. He added that "China has been treating the United States with respect."
The Trump administration previously announced that the initial tariffs, implemented last month, had generated approximately $200 billion in revenue. President Trump indicated that a portion of these funds would be allocated towards military salaries, agricultural subsidies, and social assistance programs.
However, industry experts have raised questions about the extent of the White House's authority over the utilization of these revenues. According to US law, federal revenues are deposited into the Treasury, and Congress holds the power to decide on their allocation and expenditure.
While the Trump administration has, in the past, utilized executive authority concerning funds approved by Congress, there are noted legal impediments to the unfettered use of revenue generated from tariffs.