Trump Has A 'Plan B' If Trade Talks With China Fail

U.S. President Donald Trump said in a Fox Business interview Wednesday morning his administration has a "plan B" if trade talks with China aren't resolved.

What Happened

U.S. and Chinese officials were close to finalizing a trade agreement in recent months, but China knows what "we have to have" included in negotiations to end talks, Trump told Fox Business reporte Maria Bartiromo. The U.S. needs China to agree to intellectual property rights, property theft protection, the "opening" of China, and "maybe even more than that."

Until a trade deal is reached, the U.S. government collects a 25% tariff on $250 billions of imports, Trump said. This amounts to "billions and billions of dollars" being collected and marks a contrast from prior administrations who he said never took in "10 cents."

Why It's Important

Trump said another $325 billion worth of Chinese imports is "ripe for putting tariffs on" and he is "very happy now" with the current status quo which "isn't good for China." The president said he is open to reaching a deal in a meeting with China President Xi Jinping on Saturday, who Trump called a friend of his.

If all else fails, Trump says he has a "Plan B" on the table that consists of taking in "billions and billions of dollars" each month from China on top of doing "less and less business with them."

Trump will be attending the G-20 Summit in Japan this weekend.

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