China's economy has gone down very substantially, Americans are not stupid people: Trump

Photo combination made from file photos of US President Donald Trump and Chinese President Xi Jinping. (Picture courtesy: Reuters) Photograph:( Others )

WION Web Team Washington, DC, USA Oct 11, 2018, 10.09 PM (IST)

President Trump in an interview to a TV channel said the US tariffs on Chinese products have had a big impact even as he attacked China saying "they have lived too well for too long".

Also Read: Fresh $200 billion US tariffs on Chinese goods take effect

"They lived too well for too long and, frankly, I guess they think that the Americans are stupid people. Americans are not stupid people," Trump told the US TV channel.

Trump's comments come amid reports of the International Monetary Fund(IMF) lowering China's growth forecast to 6.2 per cent next year, down from 6.4 predicted earlier. "The forecast does not incorporate the impact of further tariffs on Chinese and other imports threatened by the United States, the IMF had said while releasing the report.

"Their economy has gone down very substantially," he US president said. "I have a lot more to do if I want to do it. I don't want to do it but they have to come to the table," the US president said.

The US and China have been involved in a tit-for-tat trade war with President Trump declaring that he may impose tariffs on all Chinese goods entering the US if the Xi government did not comply with US demands allowing lowering of current account deficit among other conditions.

"We are not going to pay $500 billion a year to China and rebuild China, he said adding,"we have helped rebuild China more than any other factor. We have helped rebuild it. I said it's over."

Trump had imposed tariffs on nearly $200 billion of Chinese imports last month and then threatened more levies if China retaliated. China then hit back with tariffs $60 billion of US imports.

Trump said China wanted to negotiate but he does not believe they are ready and he told them so.

The Monetary Fund had cautioned in its report that China's growth could fall by as much as a full percentage point or more next year if the "worst-case" scenario materialises, involving more tariffs by the US, a Chinese counter-response and collapse in business confidence.

Story highlights

The US and China have been involved in a tit-for-tat trade war with President Trump declaring that he may impose tariffs on all Chinese goods entering the US