U.s.-china trade war got a lot worse
BEIJING _ The Trump administration’s abrupt Chinese tariff hike Friday raises strong doubts on whether the world’s two largest economies can reach a deal to quell their escalating trade war in the coming weeks.
Senior U.S. and Chinese trade officials met over two days in
Washington, but talks broke off Friday without signs that they were any closer to resolving their differences. President Donald Trump tweeted that the discussions were “candid and constructive” and that his relationship with Chinese President Xi Jinping “remains a very strong one.”
Chinese Vice Premier Liu He told Chinese journalists before leaving Washington on Friday that the two sides would meet again in Beijing for another round of talks, but there was no word on when it would take place.
Trump said Friday that he was in no hurry for a deal. “There is absolutely no need to rush,” he wrote in a Twitter message in which he praised the tariffs he’s already slapped on Chinese goods and touted how much more he can impose.
Even if the two sides can break through the stalemate and strike a deal on trade, the larger message of the week is that U.s.-china relations have changed fundamentally, and there is likely to be no going back.
Although their business relations are deeply entwined, the White House and China view themselves as aggressive rivals jostling for global influence and geopolitical power.
The trade war launched by Trump is just one manifestation of this. Military friction in the South China Sea, a string of espionage scandals, China’s rising military strength and the Trump administration’s battle against Chinese tech giant Huawei are all signs of an ominous chill in relations.
Although a trade deal seemed at hand in recent weeks, Trump administration officials have accused China of reneging on agreements that had been made over months of negotiations. To pressure Beijing to return to its previous commitments, Washington ratcheted up tariffs on $200 billion in products from China from 10% to 25%. China announced immediately that it would retaliate.
Some experts said lastminute revisions from China are typical of its negotiating strategy, as with Trump’s mercurial bargaining style.
If trade negotiators do not reach a deal in coming weeks, the U.S., Chinese and global economies will be hurt, say analysts, who assume both sides will find a way to end the impasse.