Donald Trump said that Xi Jinping’s ongoing tour of Southeast Asia was to “screw” the US, which hit Beijing with massive import tariffs earlier this month, even as the Chinese leader urged Vietnam to resist “unilateral bullying” by Washington.
Mr Xi started his five-day tour of Vietnam, Malaysia and Cambodia – which also faced steep tariffs before Mr Trump rolled them back partially – on Monday.
In Hanoi, his first stop, the Chinese president discussed trade relations with the Vietnamese leadership, but Mr Trump said the meeting was possibly a forum to discuss how to harm the US.
“I don’t blame China, I don’t blame Vietnam,” he told reporters at the White House. “That’s a lovely meeting. Meeting like, trying to figure out, ‘How do we screw the United States of America?’”
After Mr Trump imposed an effective tariff rate of 145 per cent on Chinese exports to the US, Beijing argued that the US actions were unfair and retaliated with a 125 per cent on American goods.
As the new tariffs policy spooked stock and bond markets, Mr Trump cut the levies to 10 per cent on almost all countries, including the three on Mr Xi’s tour, and announced a 90-day pause on enforcement to allow time for negotiations.
The president made an exception to keep the high tariffs on China, although he later exempted certain categories of goods, such as computers, smartphones and chips, imported from the Asian manufacturing powerhouse.
Mr Xi’s visit to Vietnam came after the Southeast Asian country’s leader, To Lam, urged stronger trade relations with its big neighbour.
“China’s mega market is always open to Vietnam,” Mr Xi was quoted as saying by the news agency Xinhua, adding that “China and Vietnam should strengthen strategic focus and jointly oppose unilateral bullying”.
“A small boat with a single sail cannot withstand the stormy waves, and only by working together can we sail steadily and far,” he said.
Vietnam, a major industrial and assembly hub, is a crucial source of everything from footwear and apparel to electronics for the US. According to estimates based on Vietnamese customs data, 30 per cent of the country’s GDP is driven by exports to the US.
Mr Trump previously claimed that Vietnam was “worse than China” and “almost the single worst abuser of anybody” when it came to trade with the US.
However, Reuters reported last week that Hanoi was trying to avoid harsh US levies by promising to crack down on Chinese goods that were being rerouted through the country to evade American duties. The proposal included clamping down on transhipment fraud where Chinese goods were falsely labelled as “Made in Vietnam” and tightening control over sensitive exports such as semiconductors to the neighbouring country.
Vietnam was reportedly looking to negotiate the 46 per cent Trump tariff rate down to 22-28 per cent, according to three people with knowledge of the matter, the news agency reported.
Hanoi was also prepared to lower tariffs on several US imports, including energy and cars, in an attempt to “improve trade balances”.
Mr Xi, meanwhile, was expected to sign some 45 agreements in Vietnam, including on enhancing supply chains and rail connectivity, state media reported.
“The uncertainty created by US tariffs, as well as Washington’s treatment of allies, undermine US credibility and trust in Southeast Asia and Xi will obviously capitalise on the situation,” Ian Chong, political analyst at the National University of Singapore, told ABC News.
In meetings with Vietnam’s top leadership, the Chinese leader said that Beijing and Hanoi should work together to maintain “the stability of the global free trade system and industrial and supply chains”, Xinhua reported.
Chinese foreign ministry spokesperson Lin Jian said last week that China and Southeast Asia nations were “good neighbours, good friends and good partners with a shared destiny”.
In an article published by Vietnam’s Nhan Dan newspaper, Mr Xi urged the two countries to “properly manage differences and safeguard peace and stability in our region”.
After two days in Vietnam, Mr Xi was scheduled to visit Malaysia and Cambodia between Tuesday and Friday.
“For us, we don’t think it was calculated fairly,” Malaysian trade minister Zafrul Aziz told the BBC, referring to the US tariffs. “We believe that the information that they have is not accurate, but it is what it is, we have to deal with it.”
He said Malaysia would not pick between the US and China. “No, we can’t choose and we won’t choose,” he said. “These two economic powers account for close to half of global GDP. You simply can’t not deal with one side.”
Wen Ti Sung, a non-resident fellow at the Atlantic Council, told CNN: “What Xi is trying to do now is to go there in person. Instead of fear and pressure, Xi is going to show them love, maybe some ‘souvenirs’ along the way,” he said. “All these are ways for China to show that I’m on your side. It’s safe to hang out with China, especially if you’re concerned about the US.”
