China says ready to defend trade interests

ASA urged the administration to hold off on additional tariffs and rapidly conclude negotiations with China, including lifting the existing Section 301 tariffs in exchange for China removing its retaliatory 25 percent tariff on USA soybeans.

The president's claims come after his top negotiator, U.S. Trade Representative Robert Lighthizer, on Monday ripped Chinese officials for backing away from what Trump and his team hoped would be a deal ready to be signed as early as next month.

The US will increase tariffs on 200 billion dollars' (179 billion euros) worth of Chinese goods to 25 percent on Friday, the White House confirmed on Monday.

Ongoing talks between the two countries deteriorated after United States officials blamed China for trying to walk back agreements they made in earlier meetings and Trump tweeted over the weekend that he was planning to raise import taxes on $200 billion worth of Chinese goods to 25 percent from 10 percent this Friday. Under normal circumstances and with a "normal" president, the escalation of scandal talk and fights with Congress might convince trade antagonists that the White House would be desperate enough for a deal to force them into a bad one. "The rate of additional duty will increase to 25 percent with respect to products covered by the September 2018 action on May 10, 2019".

"The former is facing re-election in the next 18 months and the latter is struggling to stabilize his country's economy", Zaccarelli said."We believe we will ultimately see a trade deal made with China this year".

Reuters, citing US government and private-sector sources, reported on Wednesday that China had backtracked on nearly all aspects of a draft trade agreement, threatening to blow up the negotiations and prompting Trump to order the tariff increase. But that was averted when China announced Liu would return to Washington.

Negotiations between the US and China were scheduled to continue in Washington on Thursday, and to include China's top trade official.

In energy trading, benchmark USA crude gained 47 cents to $61.87 per barrel in electronic trading on the New York Mercantile Exchange. But US Vice President Mike Pence said the fate of the tariffs will depend on whether China complies with the terms of the agreement. And China's retaliatory tariffs are inflicting pain on farmers, a key part of Mr Trump's political base.

"That's not going to happen!" he wrote. "Adding tariffs will not solve any problem", Chinese Foreign Ministry spokesman Geng Shuang said at a regular media briefing.

With less than 36 hours before the higher tariffs take effect, investors are on edge over the risk that talks between the world's two-biggest economies will derail, sinking hopes for a lasting truce to their trade war. But they soon pared the gains after China said it will take "necessary" countermeasures if US raises tariffs Friday. So far, McEwan added, tariffs had knocked 0.4 points off China's growth and 0.2% off USA growth. Until Sunday, markets had priced in the expectation that officials from the two countries were close to striking a deal. Mark Warner (D-VA) told Yahoo Finance he doesn't think Trump has a strategy - and China should be addressed with an global coalition.

Lighthizer and U.S. Treasury Secretary Steven Mnuchin were taken aback at the extent of the changes in the draft.

  • Zachary Reyes