Trump Says Beijing Broke Trade Deal During US-China Talks

A day later, Treasury Secretary Steven Mnuchin and the top United States trade negotiator, Robert Lighthizer, said that China was reneging on commitments it made in earlier rounds of negotiations.

In his tweet, Trump said it remains to be seen what happens in the trade talks, but for now he is "very happy with over $100 Billion a year in Tariffs filling US coffers".

He said the tariffs would increase at 12:01 am (0401 GMT) on Friday.

If talks break down and tariff hikes go ahead, "risks of a financial market collapse, extreme risk aversion and sharp slowdown in global growth will spike", Philip Wee of DBS Group said in a report.

"You see the tariffs we're doing?".

In recent months, both China and the US have indicated that trade talks were heading toward a resolution that would end the ongoing trade war between the world's largest economies. All of these countries retaliated with tariffs on USA goods.

The trouble began earlier this week. But behind the scenes, officials still aren't sure if Vice Premier Liu He will show up. Both Mnuchin and Lighthizer considered that unacceptable, given China's history of failing to fulfil reform pledges. China's backpedaling was interpreted as "a sign of the limitations of China's ability to do much of anything it is promising to do", the official said.

One private-sector source briefed on the talks said the last round of negotiations had gone very poorly because "China got greedy".

"Vice-Premier Liu He will visit the United States on May 9 and May 10 for trade talks at the invitation of senior U.S. officials", the Ministry of Commerce said in a statement on Tuesday.

USA officials on Monday effectively canceled a six-month trade truce, accusing Chinese negotiators of backsliding on major commitments agreed to thus far in months of talks. China was expected to beef up protection for trade secrets and offer foreign firms wider access to the Chinese market. However, he insisted a deal with Beijing was still possible. China too slapped reciprocal tariffs on some USA exports to the country.

The United States and China have locked horns over trade since a year ago, when the Trump administration slapped levies on billions of dollars worth of Chinese goods and demanded the Asian nation adopt policy changes that would, among other things, make China's market more accessible to US companies.

Chinese leaders have expressed confidence their economy can survive the tariff fight.

Washington is pressing Beijing to roll back plans for government-led creation of Chinese global competitors in robotics, electric cars and other technologies.

"And given China's compliance record, a pretty stiff enforcement mechanism is necessary", said an official familiar with the talks, speaking on the condition of anonymity.

"Both sides will try to demonstrate that they are prepared to walk away from the table and escalate the trade war rather than agreeing to a weak deal, in the hope of gaining leverage", he said. China has just informed us that they (Vice-Premier) are now coming to the make a deal.

Trade talks between the United States and China are due to resume in Washington today.

Since previous year, the two sides have exchanged tariffs on more than $360 billion in two-way trade, gutting United States agricultural exports to China and weighing on both countries' manufacturing sectors.

"China is going to eat our lunch?"

The US president's threat to raise tariffs comes amid claims Beijing is trying to row back on a trade deal.

  • Zachary Reyes