China cancels US talks as new tariffs loom

Fraying ties between the countries is bad for global business, Industry groups say

China has scrapped trade talks with the US days before President Donald Trump is set to escalate the commercial battle with a new round of tariffs, according to a person familiar with the discussion.

Chinese officials cancelled the planned negotiations after Trump announced he would impose new levies of up to 10 per cent on another $200 billion in Chinese imports, effective tomorrow. Beijing vowed to strike back, slapping duties of up to 10 per cent on an additional $60 billion in American products.

US industry groups in China urged Trump yesterday to restart negotiations, asserting that fraying ties between the countries is bad for global business.

US envoy summoned

Meanwhile, China’s foreign ministry summoned the US ambassador to deliver a strong protest against economic sanctions lodged over the purchase of Russian fighter jets and surface-to-air missile equipment.