US-China Trade War: Would Trump Raise Tariffs Even Higher If No Is Deal Made?

President Trump told his Cabinet Tuesday he will just raise tariffs on China if no trade agreement is reached.

The comment was the latest indication talks on easing the U.S.-China trade war were not progressing sufficiently to remove the tariff threat.

"I have a good relationship with China," Trump said during a Cabinet meeting. "We’ll see what happens. I'm very happy right now. If we don’t make a deal with China, I’ll just raise the tariffs even higher."

He added, "Look, China’s going to have to make a deal that I like. If they don’t that’s it. OK?"

In a speech to the Economic Club of New York last week, Trump said though a deal is “close,” he could live without one. Several days earlier, a Chinese official said agreement had been reached on mutual cancellation of some tariffs, but Trump said he hadn’t agreed to anything.

“They’d like to have a rollback. I haven’t agreed to anything,” Trump said on Nov. 8. “China would like to get somewhat of a rollback, not a complete rollback because they know I won’t do it.”

Trump announced last month that a phase 1 deal with China, dealing mainly with agricultural products, was close and that it would be signed in mid-November, but the time frame passed and no site for a signing has been announced.

The world’s two largest economies have been locked in a trade war for nearly 18 months.

Chinese Vice Premier Liu He spoke with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Saturday. The talks were described as “constructive.”

About $500 billion in Chinese good have been slapped with tariffs and China, in turn, has put tariffs on $110 billion of U.S. products.

A new set of U.S. tariffs are scheduled to go into effect Dec. 15 that could affect cellphones, laptops and toys right before Christmas. The 15% tariffs would affect $156 billion in Chinese consumer goods.

Gary Cohn, who resigned as White House chief economic adviser in a disagreement with Trump over tariffs, said he thinks Trump will allow the next round of tariffs to take effect because canceling them without a trade agreement would diminish his credibility in China’s eyes.