Trade talks between China and USA
WASHINGTON — Trade talks between China and the United States ended on Friday without a deal, just hours after President Trump renewed his trade war with China by raising tariffs on $200 billion worth of imports and suggesting he was prepared for a long economic fight.
In a series of early morning tweets, the president said tariffs on Chinese goods would bolster the United States economy and warned that he would tax nearly all Chinese imports if Beijing did not accede to America’s demands. His comments, which came just ahead of talks between the two countries, suggested Mr. Trump is willing to prolong his trade war for the foreseeable future.
“Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch!” Mr. Trump added, adding that the Chinese “should not renegotiate deals with the U.S. at the last minute.”
The toughened stance has thrust the world’s two largest economies back into a trade war that just one week ago had seemed on the cusp of ending. Just weeks ago, Mr. Trump was talking about a signing ceremony with Xi Jinping, China’s president, for a trade deal he said would be “epic.” But talks between the United States and China broke down over the weekend, with Mr. Trump and his advisers balking at China’s attempts to renege on parts of an emerging trade agreement.
On Friday, it appeared that the trade dispute was lurching in the direction of an all-out economic war. In addition to raising tariffs to 25 percent on $200 billion worth of Chinese goods, Mr. Trump said his administration is preparing to tax another $325 billion worth of China’s imports. China has threatened to retaliate with its own “countermeasures,” which include ending purchases of American farm goods and erecting other nontariff barriers for companies trying to gain access to the Chinese market.
Steven Mnuchin, Treasury secretary, and Robert Lighthizer, Mr. Trump’s top trade negotiator, greeted the Chinese delegation on the steps of the office of the United States Trade Representative on Friday morning. But talks ended shortly after and the Chinese delegation is expected to return to Beijing on Friday evening.
As he left the talks and headed to the White House, Mr. Mnuchin told reporters that the discussions were “constructive.”
Stock markets fell in early morning trading, with the S&P 500 down more than 1 percent but regained some ground after Mr. Mnuchin’s comments.
It remains uncertain if the two countries can salvage a trade agreement that is complicated by political dynamics on both sides of the Pacific. Mr. Trump, who has promised to be tough on China, is eager to avoid being seen as signing a weak deal that does not take advantage of the leverage the United States has created with its tariffs.
