Trump ups pressure on China ahead of last ditch trade talks

WASHINGTON: US President Donald Trump announced Sunday that the United States will raise tariffs on US$200 billion of Chinese goods – a blunt warning to Beijing just days before what is being billed as a last-ditch round of talks to reach a deal or resume their trade war.

To press China even more to accept US demands, Trump also threatened again to impose tariffs on all Chinese imports to the US – worth US$539.5 billion last year.

China is now considering cancelling the next round of talks scheduled to start Wednesday in Washington, The Wall Street Journal reported, citing a person briefed on the matter.

“China shouldn’t negotiate with a gun pointed to its head,” the newspaper quoted the source as saying, adding that a final decision had not been made. Trump said he is raising some tariffs because the trade talks are going ‘too slowly.’

“For 10 months, China has been paying Tariffs to the USA of 25 per cent on 50 Billion Dollars of High Tech, and 10 per cent on US$200 Billion of other goods. The 10 per cent will go up to 25 per cent on Friday,” Trump tweeted.

Following Trump’s announcement, Hong Kong and Shanghai stocks tumbled in the first few minutes of trade yesterday. The Hang Seng Index plunged 2.4 per cent, the benchmark Shanghai Composite Index dived 3.0 per cent and the Shenzhen Composite Index – which tracks stocks on China’s second exchange – sank 3.7 per cent.

The two sides have imposed tariffs on US$360 billion in two-way trade since last year. But Trump and Chinese leader Xi Jinping agreed to a truce in December to refrain from further escalation.