Trump praises Chinese leader amid escalating trade war

U.S. President Donald Trump on Monday praised his Chinese counterpart Xi Jinping's leadership amid an escalating trade war between the two countries.

He said he has ''great respect'' for Chinese leader and his trade representatives for seeking a "calm resolution" to the ongoing trade war.

"So impressed that they are willing to come out & state the facts so accurately. This is why he is a great leader & representing a great country. Talks are continuing!," Trump tweeted from France's coastal town of Biarritz where he attends the G7 summit.

Trump's praise of the Chinese president came only days after his administration announced tariff increase on $550 billion worth of Chinese imports in the latest escalation of the trade war between Washington and Beijing.

The move follows China's announcement that it would impose tariffs of 5% or 10% on $75 billion of U.S. goods and reinstate duties on American cars. The tariffs will take effect in two batches on Sept.1 and Dec. 15.

The U.S. president and his former advisors -- including Steve Bannon, who was dubbed the "enabler" of Trump's win in 2016 presidential elections -- designated China as the main rival from the very beginning.

They have been accusing the American "elites", corporations and the Wall Street of helping China deindustrialize the U.S by transferring their production facilities to China for 25 years and making China what it is today.

Fearing an economic recession ahead of the looming 2020 presidential elections in the U.S., Trump administration is expected to ease the trade war with China at least after a potential win.

In June, some 600 American retailers, farmers, and manufacturers, including Walmart and Levi Strauss, signed a letter urging Trump to forego tariffs on Beijing amid the ongoing trade war between the two countries.

Trump has derided and withdrawn from trade deals negotiated by his predecessors.

Critics, however, fault his continued threat of tariffs and lack of clarity over trade goals with hurting U.S. manufacturers and farmers, as well as the international trade system.