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Trump wants trade pact with China but must be 'right deal': White House adviser

Trump wants trade pact with China but must be 'right deal': White House adviser

U.S. President Donald Trump speaks to reporters about the mass shootings in Texas and Ohio before boarding Air Force One at Morristown municipal airport en route to Washington after a weekend in Bedminster, New Jersey, U.S., August 4, 2019. REUTERS/Yuri Gripas

WASHINGTON: President Donald Trump wants a trade agreement with China, but it must be "the right deal," White House economic adviser Larry Kudlow said Tuesday (Aug 6).

Kudlow's remarks came as markets attempted a recovery from Monday's deep sell-off, prompted by a sudden escalation in the US-China trade since last week.

READ: Global stocks tumble on escalating US-China trade war

"The president was not happy with the progress" of talks in Beijing earlier this month, Kudlow told CNBC. "The president is defending the American economy" against "a lot of unfair trading practices".

READ: China firms stop purchases of US farm produce

Trump on Thursday announced new tariffs on another US$300 billion in Chinese imports and on Monday responded to a drop in value of the yuan by formally branding Beijing a currency manipulator. Beijing on Monday also said it was cutting off imports of US agricultural goods.

Kudlow said Trump "would like to continue negotiations, he would like to make a deal, it has to be the right deal for the United States".

After face-to-face meetings in Shanghai last week, US and Chinese officials are due to meet in Washington next month.

However, the deepening acrimony has convinced investors the chances of a near-term resolution to the battle are increasingly slim - adding to worries the trade fight is exacerbating a global economic slowdown.

WATCH: US-China trade war: What you need to know

Since last year, the United States and China have exchanged punitive tariffs on more than US$360 billion in two-way merchandise trade.

Should they take effect, the punitive import duties Trump announced last week would mean all goods trade between the world's top two economies is subject to tariffs in the year-long trade war.

Source: AFP/aa

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