Vice President JD Vance asserted that the U.S. holds a stronger position than China in the ongoing trade tensions, expressing optimism that Beijing will opt for a “reasonable” approach.
Vance Says US Holds Leverage Amid Rising China Trade Tensions
Vance, in an interview with Maria Bartiromo on Sunday Morning Futures on Fox News, addressed the escalating trade tensions between the U.S. and China.
“What the United States has is we have a lot of leverage, and my hope, and I know the president’s hope, is that we don’t have to use that leverage,” said Vance.
Vance acknowledged the need for careful handling of the situation, stating, “It’s going to be a delicate dance, and a lot of it is going to depend on how the Chinese respond.”
He also highlighted the strong relationship between Trump and Chinese President Xi Jinping, expressing hope that China would not initiate a trade war and “act with “”choose a path of reason.”
“If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China,” Vance told Fox News.
US Futures Rise After Trump Softens Tone On China Tariffs
His remarks followed President Donald Trump‘s threat on Friday to impose a 100% tariff on Chinese goods and restrict the export of critical software, in response to Beijing’s control over rare earth mineral exports.
The U.S. stock futures rallied on Sunday night, following President Trump’s decision to walk back on his latest tariff escalation with China. This came after a spokesperson for the Chinese Ministry of Commerce stated that while China does not want a trade war, it is not afraid of one.
However, the initial tariff threat had a significant impact on the U.S. equity markets, with the three major indexes ending Friday in the red. This was seen as a sign that Trump’s “massive” tariff hike threat against China is hurting the U.S. more.
However, Trump’s history of making threats and then retracting them, especially regarding tariffs, has led to skepticism among economists. This was evident in a post by economist Peter Schiff on X, where he referred to Trump’s behavior as “TACO” (Trump Always Chickens Out).
The S&P 500 futures are up 1.35% or 88.75 points at 6,684.00, Nasdaq futures are up 466 points, or 1.90%, trading at 24,866.50, followed by Dow Futures, up 1.03%, or 469 points at 46,175.00.
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