China warns that any deals are off if U.S. raises tariffs
China promised to “significantly increase” its purchases of U. S. farm, energy and other products. BEIJING » China has balked Treasury Secretary Steat stepping up its purven Mnuchin said then chases of American prodthat the U. S. tariffs were ucts, raising the odds of suspended and the trade a trade war, if President war was “on hold.” The Donald Trump follows purchases are meant to through on his threat to reduce America’s massive tax billions of dollars’ trade deficit in goods and worth of Chinese imports. serviceswith China, which
The warning from Beilast year came to $337 biljing came after delegations lion, according to the U.S. led by U.S. Commerce SecCommerce Department. retary Wilbur Ross and After the apparent China’s top ecocease-fire, global nomic of f icial, financial markets Vice Premier Liu rallied in relief. He, wrapped up But Trump uptalks on Beijing’s ended the truce pledge to narrow last Tuesday by reits trade surplus. newing his threat White House adto impose 25 pervisers were insistcent tariffs on $50 ing on fundamenbillion in Chinese tal changes in ties high- tech goods. between the world’s two The tariffs are meant to biggest economic powers. pressure Beijing for alleg
At the outset of the edly stealing trade secrets event Ross said the two and forcing foreign comsides had discussed spepanies to hand over techcific American exports nology in exchange for acChina might purchase, cess to the Chinese marbut the talks ended with ket. Navarro later called no joint statement and neiMnuchin’s conciliatory ther side released details. comments “an unfortu
“Both sides appear to nate soundbite.” have hardened their neRoss nonetheless jourgotiating stances and neyed to Beijing Friday are waiting for the other to work out details of the side to blink,” said Eswar vague agreement Mnuchin Prasad, professor of trade had earlier cobbled topolicy at Cornell Univergether with the Chinese sity. “Despite the potenvice premier. China balked tial negative repercusat making concessions unsions for both eco nomies, less the U.S. lifted the tarthe risk of a full- blown iff threat. China- U. S. trade war, “If the United States inwith tariffs and other troduces trade sanctions trade sanctions being imincluding a tariff increase, posed by both sides, has all the economic and trade risen significantly.” achievements negotiated
The United States has by the two parties will not threatened to impose tartake effect,” said a Chinese iffs on up to $50 billion of government statement, Chinese products in a discarried by the official Xipute over Beijing’s aggresnhua News Agency. sive tactics to challenge. The negotiating process U. S. technological domishould be “based on the nance; Trump has asked premise” of not fighting a U. S. Trade Rep. Robert “trade war,” the statement Lighthizer to look for ansaid. other $100 billion in ChiThe dispute with China nese products to tax. China comes at the same time has targeted $50 billion in Trump has riled some of U.S. products for possible America’s closest allies retaliation. with the imposition of tar
Tensions temporariffs on steel and aluminum ily eased on May 19 after imports.