White House Adviser Navarro Walks Back on Comments China Trade Deal ‘Over’

White House trade adviser 👤Peter Navarro on Monday walked back on his earlier remarks that the U.S.-China trade pact was “over”, stoking volatility in markets already frazzled by the coronavirus pandemic.

Navarro said his comments were taken “wildly out of context”, while U.S. President Donald Trump confirmed in a tweet the deal with China was “fully intact”.

“Hopefully they will continue to live up to the terms of the agreement,” Trump said on Twitter.

Earlier, Navarro told Fox News “it’s over” in an interview when asked about the trade agreement.

He said the “turning point” came when the United States learned about the spreading coronavirus only after a Chinese delegation had left Washington following the signing of the Phase 1 deal on Jan. 15.

“It was at a time when they had already sent hundreds of thousands of people to this country to spread that virus, and it was just minutes after wheels up when that plane took off that we began to hear about this pandemic,” Navarro said.

China on Tuesday responded to Navarro’s claims about the trade deal with disdain.

“He consistently lies and has no honesty and trustworthiness,” foreign ministry spokesman Zhao Lijian told reporters at a regular press briefing.

As for the trade deal, Zhao said: “China’s stance on the issue has been consistent and clear.” He directed specific questions to relevant departments.

Financial markets were choppy, with U.S. stock futures initially turning negative and risk-sensitive currencies including the Australian dollar falling.

They have since recovered much of the lost ground after Navarro, one of the most outspoken critics of China among Trump’s senior advisers, issued a statement saying his comments “have been taken wildly out of context”.