With acrimony between Washington and Beijing increasing, there seems to be little time to salvage any deal
China is expected to retaliate against such a move, subjecting all trade between the world's two largest economies to punitive leviesUS President Donald Trump, centre, at the White House in Washington, DC, the US, May 9 2019. Picture: JOSHUA ROBERTS/BLOOMBERG
The US is set to increase its existing tariffs on $200bn in Chinese goods to 25% from 10% at 12.01am EDT on Friday. Trump said on Thursday he was"starting the paperwork today" to impose a 25% tariff on the $325bn in Chinese goods untouched by the trade war so far.China is expected to retaliate against such a move, as it has with previous US tariffs, effectively subjecting all trade between the world's two largest economies to punitive levies.
Earlier on Thursday in Beijing, China appealed to the US to meet it halfway to salvage their deal. Commerce ministry spokesman Gao Feng said the decision to send Liu to Washington despite the tariff hike threat demonstrated China's"utmost sincerity". A US source close to the talks said there were three potential scenarios for the discussions on Thursday and Friday, the worst of which would be an"orderly breakup", where the two sides agree to suspend negotiations.The best case would be if the Chinese side walked back its demands for major changes to proposed texts so the two sides could focus on remaining sticking points with the aim of a deal in time for the G20 summit in Japan in late June.
US government and private sector sources close to the talks said that in each of the seven chapters of the draft, China had deleted its commitments to change laws to resolve complaints that caused the US to launch a trade war: Theft of US intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation.
Since July 2018, China has cumulatively imposed counter-tariffs of up to 25% on about $110bn of US products. It last levied tariffs, of 5% to 10%, on $60bn of US goods including liquefied natural gas and small aircraft in September.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China trade team still plans on US talks as Trump vows to raise tariffsStock markets sink and oil prices tumble after US president’s remarks
Read more »
Business Maverick: China Threatens Retaliation as Trump Touts Chances of DealThe U.S. and China sent conflicting signals over trade, with President Donald Trump expressing optimism about the prospect of a deal and Beijing warning that it will retaliate if the U.S. follows through on a threat to hike tariffs.
Read more »
Asian markets plunge as Trump threatens to hike China tariffs | News | World | M&GPresident Trump sent Asian markets plunging on Monday after threatening to hike tariffs on $2000-billion of Chinese goods at the end of the week in a bid to speed up trade talks between the economic superpowers.
Read more »
JSE could follow global markets lower on ThursdayUS-Sino trade row weighs on stocks after Donald Trump vows to raise tariffs against China
Read more »
US deploying aircraft carrier and bombers to Middle East to deter Iran, says BoltonThe Trump administration’s latest decision could exacerbate tensions between Washington and Tehran
Read more »
World stocks dive as Trump threatens China tariffs
Read more »
US stocks futures tumble on Trump trade threat on ChinaAbout 25 minutes into trading, the Dow Jones Industrial Average stood at 26,182.21, down 1.2%.
Read more »
Rand volatility picks up amid uncertainty in US-China trade talksThe rand lost ground at the weekend following US President Donald Trump's threat to impose more tariffs on China
Read more »
Rand volatility picks up amid uncertainty in US-China trade talksThe rand lost ground at the weekend following US President Donald Trump's threat to impose more tariffs on China.
Read more »
Price of oil falls on uncertainty about US-China trade talksOil markets remain tense as the US has tightened sanctions on Iranian oil exports and plans to bulk up its forces in the world's top oil-exporting region
Read more »
China cuts cash reserves banks must holdCentral bank move designed to boost slowing economy
Read more »