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US Secretary of Commerce Wilbur Ross told CNBC on Tuesday that the US and China could successfully negotiate a trade deal.
"In the end, it will end with negotiations," Ross said in an interview for "Squawk Box". "Even shooting wars end in negotiations."
While questions were circulating whether President Donald Trump and Chinese leader Xi Jinping would meet at the G-20 summit later this month, the US president told CNBC on Monday that he would impose additional customs on Chinese products if Xi did not participate.
"The agreement with China will come to an end.You know why? Because of tariffs," Trump said at a call to the "Squawk Box" with Joe Kernen of CNBC. "At the present time, China is absolutely decimated by the companies that leave it to go to other countries, including ours, because they do not want to pay the customs duties."
Ross, who has spoken in favor of tariffs, warned that trade agreements are not reached at summits. Any discussion between Trump and Xi would pave the way for a possible deal.
In May, Trump raised duties on Chinese goods worth $ 200 billion and threatened to collect taxes on an additional $ 300 billion, the rest of China's imports into the United States.
An agreement with China should remedy all the violations alleged by the United States, otherwise such an agreement would make no sense, said Ross, who before joining the White House, had made a fortune in the world of investment under the direction of WL Ross & Co. and the purchase of stakes in distressed badets.
"Either we are going to collect more and more tariffs on more and more products, or we will endorse an agreement with them," Ross said, warning investors not to "trigger" too much when Trump threatens tariffs. customs.
On May 30, after the US president warned Mexico that he would impose a 5% tariff on Mexican goods if they took no action to prevent undocumented migrants from entering the country. in the United States, Ross said that "people were getting hysterical" and that the markets were weakened "a little too nervous." The day after the announcement of the proposed rates, the Dow index Jones Industrial Average dropped more than 350 points.
"Judge this administration by the results," Ross said. "Do not judge him by temporary sentences." Late Friday, the president overturned tariffs in Mexico, saying the United States and Mexico had agreed to follow up on previously granted concessions on immigration.
In an interview with CNBC on Monday, Trump said the agreement was reached in just two days, because Mexican officials knew the alternative would have been worse.
"We have everything we want and we are going to be a great partner for Mexico now because they respect us now," said Trump. "They did not even respect us, they could not believe how stupid we were with everything that happened when someone came from Mexico and headed straight for our country and we were powerless to do anything it would be."
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