U.S. and China flags with soybeans

China is proposing that it could buy an additional $30 billion a year of U.S. agricultural products including soybeans, corn and wheat. 

President Donald Trump said substantial additional U.S. tariffs would be placed on goods from China if there’s no progress on a trade deal after his planned meeting with Chinese counterpart Xi Jinping at the G-20 Summit in Japan.

“My Plan B with China is to take in billions and billions of dollars a month and we’ll do less and less business with them,” Trump said June 26 during an interview with Fox Business Network’s Maria Bartiromo.

Trump has previously said he may decide to raise tariffs on the remaining $300 billion of Chinese imports if he doesn’t like what he hears from Xi at this weekend’s summit in Osaka. The two leaders are expected to meet June 29.

The president's latest remarks added an element of doubt to Treasury Secretary Steven Mnuchin's comment earlier Wednesday on CNBC that he's “hopeful” about U.S.-China trade negotiations.

An alternate course as the trade talks resume may be that U.S. suspends the next round of tariffs on the additional $300 billion of Chinese imports, Bloomberg reported June 25. If the tariffs on the broader set of goods does go into effect, it could be at a 10% rate rather than 25%, Trump said in the television interview Wednesday.

”My plan B’s maybe my plan A, my plan B is that if we don’t make a deal I will tariff, and maybe not at 25%, but maybe at 10%,” Trump said in the interview Wednesday.

Trump criticized a range of trading partners in the interview, including Germany and Vietnam, which he called an “abuser” when responding to a question about companies relocating production from China to that country following U.S.-imposed tariffs.

The president said he likes China and Xi but added: “They have taken advantage of us for so long.”

“They devalue their currency like a ping-pong ball,” he said.

The talks between the leaders of the world’s two largest economies mark a critical juncture in their trade war, which has gone on for more than a year, and both sides have plenty to lose if it escalates.

No detailed trade deal is expected from the leaders’ summit, a senior U.S. administration official said Tuesday. The goal of the meeting is to create a path forward for a trade agreement, after negotiations broke down last month. That’s when Trump decided to increase tariffs on $200 billion in Chinese imports, and threatened to target the remaining $300 billion with duties of as much as 25%.