Trump ramps up Chinese tariff threat

Mnuchin invites Beijing to resume talks amid tensions

WASHINGTON — President Donald Trump on Thursday cast doubt on the possibility of a breakthrough in trade talks with China, saying he was prepared to hammer China’s economy with tough new economic penalties if Beijing doesn’t offer concessions.

“We are under no pressure to make a deal with China,” Trump wrote on Twitter, trying to dispute reports that he was seeking to cut a deal. “They are under pressure to make a deal with us. Our markets are surging, theirs are collapsing. We will soon be taking Billions in Tariffs & making products at home. If we meet, we meet?”

The Twitter post came after White House officials confirmed that Treasury Secretary Steven Mnuchin had offered a formal invitation to Chinese leaders to restart trade talks, aimed at de-escalating the trade battle between the world’s largest economies.

The announcement followed reports by U.S. and European chambers of commerce that foreign companies in China have been hurt by earlier tariff hikes by both sides in the fight over Beijing’s technology policy.

Trump’s Twitter post is consistent with his recent bravado toward China, but it could make Chinese leaders dubious that Trump will be willing to negotiate a deal. Talks between both countries have already broken down several times, at least once because Trump balked at a deal at the last moment.

On Wednesday, White House officials had seemed optimistic at the potential for new talks.

“Well, it’s just an invitation, as far as I know,” White House National Economic Council Director Larry Kudlow said on Fox Business Network. “There’s some discussions and information that we received that the Chinese government — the top of the Chinese government wished to pursue talks.”

Any talks would resume amid doubts over prospects for a diplomatic settlement.

“The question is whether anything has changed,” said Jeff Moon, a former U.S. trade negotiator in the Obama administration. “Who’s in charge on the American side and what do they want?”

Robert Holleyman, former deputy U.S. trade representative, said U.S. demands for fundamental changes in China’s state-directed economy would make for difficult talks. “We are a long way from finding a solution,” said Holleyman, a partner at Crowell & Moring. “And a solution will require some tough choices, especially on the part of China.”

Trump and Chinese President Xi Jinping will likely need to haggle personally over any settlement, he said.