Trump: "I am elected" to face China for trade

WASHINGTON (Reuters) – US President Donald Trump said on Wednesday that he was "elected" to tackle trade imbalances with China, even as congressional researchers reported. warned that its tariffs would reduce US economic output by 0.3% in 2020.

Trump told reporters that his life would be easier if he had not waged a trade war with China. But he defended his actions and said he was convinced that a trade agreement between the world's largest economies was still possible.

"I am elected … so I go to China. I do not care about China on trade. And you know what? We are winning, "said Trump, saying the title often referred to religious figures such as Jesus and Mohammed.

Trump has acknowledged for a second day in a row that the trade war with China could hurt the US economy, although he insists that a recession is not over. 39; horizon.

The non-parliamentary budget office of Congress has become Wednesday the last independent institution to warn against the consequences of tariffs imposed by Trump on China and many other countries.

The CBO said changes in US and foreign trade policies since January 2018 would reduce US gross domestic product adjusted by inflation by 0.3% from what it would have been otherwise in 2020.

The International Monetary Fund has declared that world economic output could be reduced by 0.5% in 2020 through tariffs.

CBO stated that tariffs increase domestic prices, reduce consumer purchasing power, and increase the cost of business investment. Real household income in the US is also expected to fall by 0.4%, he added.

Trump told reporters on Tuesday that he was facing China over the trade, even though it was causing short-term damage to the US economy, as Beijing had been deceiving Washington for decades.

The Chinese Foreign Ministry appeared to downplay his remarks, stressing the need for a dialogue to resolve trade disputes, but threatened retaliation if Washington proceeded with an $ 8 billion arms sale to Taiwan.

Chinese Foreign Ministry spokesman Geng Shuang reiterated the threat of imposing sanctions on US companies selling arms to Taiwan, saying such sales were a serious interference in the internal affairs of the country. China and a violation of its sovereignty.

Washington officially announced Tuesday the approval of a possible sale of 66 Lockheed Martin (LMT.N) F-16 fighter jets bound for Taiwan.

Trump's pricing plans have shaken global markets and angered investors as the trade dispute between the world's two largest economies begins in its second year without end.

Growing fears that the trade war could trigger a possible US recession weighed on the financial markets last week and appeared to deter government officials from knowing whether the economy would hold up during the election presidential election of November 2020.