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economy | IST

Davos 2020: Phase-1 deal is great one for both the US and China, says Donald Trump

US President Donald Trump  on Wednesday said he has a great relationship with Chinese President Xi and today's deal between the two countries has the potential to be the biggest pact ever made. The relationship of the US with India, China, Japan and many others are countries is now better than it has ever been, Trump asserted.

US President Donald Trump  on Wednesday said he has a great relationship with Chinese President Xi and today's deal between the two countries has the potential to be the biggest pact ever made.
"We just signed probably the biggest deal ever made, Trump told CNBC's Joe Kernen on the sidelines of the World Economic Forum at Davos.
Speaking about US-China phase-1 trade deal  he said it is an important deal for his country as well as for China because its supply chains were breaking, and therefore, it has been tough for them.
"The best thing that happened is we have two countries that like each other again because it was getting pretty nasty."
He added they (China) have taken advantage of US for 30 years and he was not going to let it happen anymore.
"We have taken in billions of dollars, the tariffs are still on, so I still have that negotiating chip, I have 25 percent tariffs on and that is a great negotiating chip and we will be starting phase-2 very soon."
However, the relationship with China is probably now better than it has ever been, the US president added. "The relationship I have with President Xi is extraordinary he is for China and I am for us but the deal is a phenomenal deal."
The relationship of the US with India, China, Japan and many others are countries is now better than it has ever been, Trump asserted.
Speaking about Chinese President Xi Jinping, Trump said: "I have a great relationship with President Xi, we just signed probably the biggest deal ever made. It certainly has the potential to be the biggest deal ever made and that was a very interesting period of time but we got it done and I think the relationship is very good."
The US President said his country has an incredible economy where the consumer has never been so rich. Between the tax cuts and the regulation cuts, people forget about regulation, he said, adding he thinks that might have been more important than the tax cuts.
He said the US GDP growth will be higher than 2 percent this year.
"We have a consumer in the US that has never done so well and I think we have tremendous potential. We know where to point, where we have done so well and I think we are going to do much better."
On correlation between re-expansion of Feds balance-sheet and movement of stock markets, Trump said Fed raised interest rates too fast and did not drop it fast enough.
There were a lot of increases, now they have dropped it but it was very late, he said. "If you look at other countries, they actually have negative interest rates, negative in a positive way, I mean they are actually getting paid - they make a loan and they end up getting paid. I feel the rates should go down further. The dollar is very strong and I think the rate should go down."
With China, Mexico and Canada deals done, it's is time to engage with UK and EU, Trump said. "Would be very surprised if US has to impose tariffs on EU."
He also said more tax cuts hill be his priority. "Want lower interest rates because that would let me refinance debt and repay it,"
"We have about 10 countries where we had horrible deals, rectifying that now."