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At G7 Summit, Trump Pivots Again on Trade War, Saying China Wants a Deal At G7, Trump Embraces Consensus Over Confrontation on China and Iran
(about 4 hours later)
BIARRITZ, France — President Trump shifted tone on his trade war with China yet again on Monday, expressing confidence that the two sides can reach a deal and calling President Xi Jinping a “great leader” three days after branding him an “enemy.” BIARRITZ, France — President Trump embraced global diplomacy over go-it-alone confrontation on Monday, declaring his desire to resolve the trade war he started with China and signaling openness to a historic meeting with the president of Iran, which the United States has treated as a pariah.
As he completed an international summit meeting, Mr. Trump told reporters that Chinese officials had reached out by telephone and that negotiators would restart trade talks after the latest escalation in tariffs and his “order” to American companies to look for ways to pull out of China. Concluding a head-spinning international summit without the spite he had directed at America’s closest allies after previous gatherings, Mr. Trump left France having reached a fragile consensus with his counterparts to seek resolution to crises that have shaken the world.
In another surprise, Mr. Trump also said he was open to meeting with President Hassan Rouhani of Iran within the next few weeks in response to an initiative by President Emmanuel Macron of France. If such a meeting came about, it would be the first between American and Iranian leaders since the Tehran hostage crisis of 1979-81. But his departure also underscored the deep differences that remain. The Group of 7 managed only a general, 264-word joint statement — a far cry from the 14,263-word communiqué that the leaders signed with President Barack Obama in 2016.
[See the latest updates on the Group of 7 meetings in France.] Days after ricocheting between threats and conciliation over China’s trade practices, the president appeared to settle on a path that leads toward negotiation rather than ever-spiraling tariffs. He told reporters that Chinese officials had reached out by telephone and that American officials would restart trade talks.
Mr. Trump, who since taking office has abandoned the 2015 nuclear agreement with Iran and reimposed sanctions to cripple its economy, even said that if talks begin, he would be willing to back short-term loans to Iran secured by oil to help Tehran get through its current financial troubles. At the same time, the president endorsed a diplomatic initiative with Iran, led by President Emmanuel Macron of France, which Mr. Trump said could culminate in a face-to-face meeting with President Hassan Rouhani within weeks — the first between an American and Iranian leader since the Tehran hostage crisis of 1979-81.
The change in the president’s language about China was striking given the wild fluctuations in his approach over the last few days, and it seemed to reassure markets rattled by the latest escalation of tariffs on Friday. But it was not clear how concrete an opening China really had made. Taken together, the twin bursts of surprise diplomacy punctuated a remarkable trip abroad that began with what Mr. Macron later called “nervousness” that Mr. Trump would sow discord, and ended with relief that the Group of 7 had found some common ground instead.
“This was a big step above in terms of unity, in terms of agreement,” Mr. Trump said, echoing Mr. Macron at a news conference before returning to Washington from the Group of 7 meetings at a beach resort in the south of France. “We have really great agreement on a lot of very important subjects.”
The uncertain prospects for both diplomatic initiatives — not to mention the unusual cordiality among Mr. Trump and the leaders of France, Britain, Canada, Italy, Japan and Germany — was heightened by the president’s dramatic shifts in tone throughout the weekend.
On Friday, after China imposed new tariffs in retaliation for American levies, Mr. Trump said he “hereby ordered” American companies to start leaving China and vowed to increase his own tariffs. He referred to President Xi Jinping of China as an “enemy.” On Sunday, Mr. Trump said he had harbored “second thoughts” about the escalation. Within hours, aides rushed out statements saying his only regret was that he had not been even tougher on China.
And by Monday, Mr. Trump expressed confidence that the two sides could reach a deal and called Mr. Xi a “great leader.”
Mr. Trump heard an earful during the weekend of discussions about the need to avoid a trade-driven calamity with China.
The change in the president’s language about China seemed to reassure markets that had been rattled on Friday. But it was unclear how concrete an opening China really had made.
“We were called and we’re going to start very shortly to negotiate,” Mr. Trump said. “We’ll see what happens, but I think we’re going to make a deal.” He added that the Chinese seemed ready to agree. “This is the first time I’ve seen them where they really want to make a deal.”“We were called and we’re going to start very shortly to negotiate,” Mr. Trump said. “We’ll see what happens, but I think we’re going to make a deal.” He added that the Chinese seemed ready to agree. “This is the first time I’ve seen them where they really want to make a deal.”
Although Mr. Trump originally said the American side had received two phone calls, Beijing did not immediately confirm any, and the editor of a newspaper owned by the Chinese Communist Party wrote on Twitter that there had been no significant contacts in recent days. Although Mr. Trump originally said the American side had received two phone calls, Beijing did not immediately confirm any, and the editor of a newspaper owned by the Chinese Communist Party wrote on Twitter that there had been no significant contacts in recent days. Asked about that contradiction, Mr. Trump insisted there had been “numerous calls” in the previous 48 hours.
Asked later about that, Mr. Trump gave no details but insisted that in fact there had been “numerous calls” in the previous 48 hours. Either way, Mr. Trump appeared to be trying to tamp down the conflict shortly before financial markets reopened. Stock prices ended higher.
Either way, Mr. Trump appeared to be trying to tamp down the conflict shortly before markets reopened for the week and investors responded on Wall Street, where prices rose in early trading. Mr. Trump cited a public appeal for calm by China’s chief negotiator, Liu He, taking it as a signal that Beijing wanted to de-escalate. Mr. Trump cited a public appeal for calm by China’s chief negotiator, Liu He, taking it as a signal that Beijing wanted to de-escalate.
“We are willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war,” Mr. Liu, a Chinese vice premier, said in a speech that got the president’s notice. “We believe that the escalation of the trade war is not beneficial for China, the United States nor to the interests of the people of the world.”“We are willing to resolve the issue through consultations and cooperation in a calm attitude and resolutely oppose the escalation of the trade war,” Mr. Liu, a Chinese vice premier, said in a speech that got the president’s notice. “We believe that the escalation of the trade war is not beneficial for China, the United States nor to the interests of the people of the world.”
On the one hand, Mr. Liu’s comments were simply a restatement of longstanding Chinese policy and China’s state media did not initially give them much attention. But coming after days of volatile and combative statements and actions, Mr. Trump invested great meaning in the comments. Mr. Liu’s comments simply restated longstanding Chinese policy, and China’s state media did not initially give them much attention. But coming after days of combative statements and actions, Mr. Trump invested great meaning in the comments.
Mr. Trump has pivoted repeatedly in his language on the conflict in recent days. On Friday, after China imposed new tariffs in retaliation for American levies, Mr. Trump said he “hereby ordered” American companies to start leaving China and vowed to increase his own tariffs. He referred to Mr. Xi as an “enemy.” The developments with Iran took many by surprise.
On Sunday, Mr. Trump said he’d had “second thoughts” about the escalation. But within hours, aides rushed out statements saying that his only regret was that he had not been even tougher on China. President Macron of France, who has tried to preserve the 2015 nuclear agreement that Mr. Trump has abandoned, issued a last-minute invitation to Iran’s foreign minister, Mohammad Javad Zarif, to talk on the sidelines of the Group of 7 meetings on Sunday.
The developments with Iran took many by surprise. Mr. Macron, who has tried to preserve the 2015 nuclear agreement that Mr. Trump has abandoned, stunned many by issuing a last-minute invitation to Iran’s foreign minister, Mohammad Javad Zarif, to visit Biarritz and talk on the sidelines of the Group of 7 meetings on Sunday.
He took that further on Monday by saying he had spoken with Mr. Rouhani and was confident that if Mr. Trump met with him, the two could find a potential deal on Iran’s nuclear ambitions and what the Americans and their allies consider Iran’s destabilizing activities in the Middle East.He took that further on Monday by saying he had spoken with Mr. Rouhani and was confident that if Mr. Trump met with him, the two could find a potential deal on Iran’s nuclear ambitions and what the Americans and their allies consider Iran’s destabilizing activities in the Middle East.
Joining Mr. Macron at a news conference at the end of the Group of 7 sessions, Mr. Trump expressed openness to a meeting with Mr. Rouhani without eagerly embracing it. “If the circumstances were correct or right, I would certainly agree to that,” the president said. “But in the meantime, they have to be good players. You understand what that means.” Joining Mr. Macron at a news conference at the end of the Group of 7 sessions, Mr. Trump expressed willingness to meet with Mr. Rouhani without eagerly embracing it. “If the circumstances were correct or right, I would certainly agree to that,” Mr. Trump said. “But in the meantime, they have to be good players. You understand what that means.”
He said that Iran can be a “great nation” and that he does not seek regime change but if Iranian leaders pursue their aims at the expense of America’s national interests, “they’re going to be met with really violent force.” Mr. Trump, who has reimposed sanctions to cripple Iran’s economy, said that the idea of a meeting with Mr. Rouhani within weeks sounded realistic, if not certain. And he even said that if talks were to begin, he would be willing to support short-term loans to Iran secured by oil to help the country withstand its current financial troubles.
But Mr. Trump, who has repeatedly castigated former President Barack Obama for unfreezing billions of dollars of Iran’s money as part of the nuclear deal, said he would go along with “a short-term line of credit or loan” to Iran secured by oil. “We’re talking about a letter of credit,” he said. “It would be from numerous countries.” “We can have it done in a very short period of time and I really believe that Iran can be a great nation,” Mr. Trump said after Mr. Macron announced the Iran effort. “I would like to see that happen. But they can’t have nuclear weapons. O.K.?”
No American and Iranian leaders have met since the 444-day hostage crisis that broke relations between the two countries and hobbled Jimmy Carter’s presidency. Mr. Obama talked by telephone with Mr. Rouhani in 2013 but the Iranian leader declined at that time to meet in person amid pressure from hard-liners in his own country. He added a note of caution, saying that if Iranian leaders pursue their aims at the expense of America’s national interests, “they’re going to be met with really violent force.”
“This is what I mentioned to President Rouhani on the phone as well — that if he agreed to a meeting with President Trump, that my conviction was that an agreement can be met,” Mr. Macron said. “I hope that in the next few weeks based on our discussions we will be able to achieve the meeting.” Iran promised in the nuclear agreement to never attain nuclear weapons. Mr. Trump has called the agreement too weak.
The prospects for such a meeting are unclear. Mr. Rouhani and Mr. Zarif are answerable to Iran’s supreme leader, Ayatollah Ali Khamenei, who has said repeatedly there can be no negotiations with the Trump administration. No American and Iranian leaders have met since the 444-day hostage crisis that broke relations and hobbled Jimmy Carter’s presidency. Mr. Obama talked by telephone with Mr. Rouhani in 2013 but the Iranian leader declined to meet in person amid pressure from hard-liners in his own country.
Mr. Trump said Mr. Macron had asked if he had any objection before Mr. Zarif’s visit and that he did not. But he said he had declined to meet with Mr. Zarif while he was in town. “I spoke to President Macron yesterday, and I knew everything he was doing,” he said. “And I approve whatever he was doing. And I thought it was fine.” The prospects that Iran would agree to such a meeting now are unclear. Mr. Rouhani and Mr. Zarif are answerable to Iran’s supreme leader, Ayatollah Ali Khamenei, who has said repeatedly there can be no negotiations with the Trump administration.
But he said he had chosen not to see Mr. Zarif, who became the target of sanctions by the Trump administration last month. “I think it’s too soon to meet, I didn’t want to meet,” Mr. Trump said. “But it’s true there’ll be time to meet with Iran, and it’s going to be a great thing for Iran. They have a great potential.” Mr. Trump said Mr. Macron had asked if he had any objection before Mr. Zarif’s visit and that he did not. “I spoke to President Macron yesterday, and I knew everything he was doing,” he said. “And I approve whatever he was doing. And I thought it was fine.”
As the Group of 7 meeting ended, Mr. Trump emphasized that he got along well with fellow leaders a year after storming out of the group’s meeting in Canada with harsh criticism of its host, Prime Minister Justin Trudeau, and without signing the joint communiqué. But Mr. Trump said he had chosen not to see Mr. Zarif, who became the target of sanctions by the Trump administration last month. “I think it’s too soon to meet, I didn’t want to meet,” Mr. Trump said. “But it’s true there’ll be time to meet with Iran, and it’s going to be a great thing for Iran. They have a great potential.”
The comity between Mr. Trump and Mr. Macron — the pair hugged during their news conference — contrasted with last year, when the American president stormed out of the group’s meeting in Canada with harsh criticism of its host, Prime Minister Justin Trudeau, and without signing the joint communiqué.
But even as leaders stuck to polite tones, their differences were evident. Mr. Trump skipped a session on climate change and the oceans after aides privately complained that Mr. Macron, as the summit host, was too focused on “niche issues.”But even as leaders stuck to polite tones, their differences were evident. Mr. Trump skipped a session on climate change and the oceans after aides privately complained that Mr. Macron, as the summit host, was too focused on “niche issues.”
Stephanie Grisham, the White House press secretary, said Mr. Trump missed the climate session because he had other meetings. At the session he skipped, the remaining leaders agreed on a $20 million aid package to help Brazil and its neighbors fight the fires raging in the Amazon rainforest. Stephanie Grisham, the White House press secretary, said Mr. Trump missed the climate session because he had other meetings, including a one-on-one session with Chancellor Angela Merkel of Germany. But news cameras captured Ms. Merkel at the beginning of the climate change session, having apparently decided to at least make an appearance before meeting with Mr. Trump.
Mr. Macron and President Sebastián Piñera of Chile said they also had reached an agreement in principle with countries of the Amazon basin for a long-term program of forest protection and reforestation of cleared lands. They said more details might be presented next month at the United Nations General Assembly. At the session he skipped, the remaining leaders agreed on a $20 million aid package to help Brazil and its neighbors fight the fires raging in the Amazon rainforest.
On other issues, Mr. Trump found his attention rebuffed. Prime Minister Narendra Modi of India, attending as a guest, declined Mr. Trump’s offer to mediate the escalating dispute with Pakistan over the territory of Kashmir.On other issues, Mr. Trump found his attention rebuffed. Prime Minister Narendra Modi of India, attending as a guest, declined Mr. Trump’s offer to mediate the escalating dispute with Pakistan over the territory of Kashmir.
“These issues are bilateral,” Mr. Modi said as he sat with Mr. Trump for a meeting on the sidelines of the main events. “These issues are bilateral,” Mr. Modi said as he sat with Mr. Trump for a meeting on the summit sidelines.
Mr. Modi’s government this month terminated the autonomy of the part of Kashmir controlled by India, and temporarily severed most communications to the impoverished region in the Himalayas, long been claimed by both India and Pakistan. Indian forces rounded up more than 2,000 Kashmiris in a crackdown in the days before and after the move, local officials have told The New York Times.
Speaking with reporters, Mr. Trump offered no criticism of India’s action and deferred to Mr. Modi’s preference that the United States keep out of the matter. “The prime minister really feels he has it under control,” Mr. Trump said.
Prime Minister Imran Khan of Pakistan told The Times last week that Mr. Modi and his government had rebuffed all entreaties to talk. “There is no point in talking to them,” Mr. Khan said. “I mean, I have done all the talking.”