There have been mixed messages from the White House regarding trade and a new deal with China. A bitter war of tariffs has been fought between the world’s two largest trading partners, with each side blaming the other for a breakdown in negotiations.

President Trump has on many occasions pointed to his friendly relationship with Chinese President Xi Jinping, and even hinted earlier this year that a deal would be signed at his Mar a Lago resort in Florida.

Now the President appears to be taking a tougher stance against China. According to his latest statement, no deal will be signed unless key conditions are met. Trump has also threatened new tariffs for this year.

China Reneged on the Deal

President Trump spoke outside of the White House on Tuesday, telling members of the press that “China wants to make a deal very badly. It is me right now that is holding up the deal. And we’re going to either do a great deal with China or we’re not going to do a deal. We had a deal with China and then they went back on the deal. They said we don’t want to have four major points, five major points.”

The President didn’t clarify the points that China pulled back on, but it is understood that they were fundamental to the spirit of the deal. Some analysts have speculated that these points related to China’s subsidization of its high tech industries, and intellectual property protections.

Donald Trump has now demanded that Xi Jinping meet with him at the G-20 summit in Japan at the end of this month. If no meeting is arranged, tariffs will be raised to 25% on $300 billion of Chinese goods.

President Trump Sees Tariffs as Essential to Economic Success

The President has made no secret of his love for tariffs. He has used them (mostly effectively) to force negotiations and better trade conditions for the U.S.

Speaking to CNBC earlier this week, he said that “Tariffs are a beautiful thing when you are the piggy bank, when you have all the money. Everyone is trying to get our money.” He also told CNBC that China would eventually be forced to make a deal, because they simply can’t afford to lose the revenue that comes from American businesses and consumers.

The President’s latest comments could send some minor shockwaves through the markets this week. Higher tariffs could raise the costs of consumer goods coming from China. Investors don’t like tariffs and they definitely don’t like the prolonged trade war.

However, from a political perspective and a long term economic one, it appears that the White House is doing what is needed to protect American industry and future growth.