Chinese Vice Premier confident in economic development after US-China talks

A file image of Xi Jinping and Donald Trump

READ MORETrade war Trump says a deal with China still possible despite threats of fresh tariffs

Trade talks between the US and China broke up Friday with no agreement, hours after President Donald Trump more than doubled tariffs on $200 billion in Chinese imports.

Trump boosted tariffs Friday on US$200 billion in goods from China and has said the process is underway to impose 25% levies on a further US$325 billion.

During the just concluded round of China-U.S. trade talks, Washington increased additional tariffs on 200 billion U.S. dollars' worth of Chinese imports from 10 percent to 25 percent, a move Beijing deeply regrets and will be forced to respond to with necessary countermeasures.

"The relationship between President Xi and myself remains a very strong one, and conversations into the future will continue", he tweeted. Liu spoke to reporters before leaving Washington for Beijing after the talks ended with China insisting a deal requires that tariffs on its exports be lifted first.

China and the United States have agreed to hold more trade talks in Beijing, Vice Premier Liu He told Chinese state media in the United States on Friday, following a round of discussions in Washington which he described as "honest" and "constructive". "Every country has its principles, and we can not give in". Because it means that trade tariffs will go up, fewer goods will circulate around the world, we won't be able to circulate our own French goods as easily around the world, and jobs will be destroyed.

U.S. Treasury Secretary Steven Mnuchin said there are now no talks with China scheduled in the future. But Lighthizer rejected this, telling Liu that the United States was insisting on restoration of the previous text. Yields on USA government debt also drifted higher after the end of the talks.

The burden of Trump's tariffs on imports from China and other countries falls entirely on US consumers and businesses that buy imports, said a study in March by economists from the Federal Reserve Bank of New York, Columbia University and Princeton University. "Nothing planned as of now", he told US business news network CNBC.

China is the second-largest vehicle export market for the U.S. But the authorities in Beijing have not released any details, leading analysts to think they are biding their time in the hope an agreement can be reached before the tariffs kick in.

There's an escape hatch in Trump's latest tariff hike: They don't apply to products from China already on their way to the United States.

He added that the latest tariffs, which went into effect at 12:01 a.m. on Friday, would produce "massive payments" that would go directly to the US Treasury Department.

Previously, China has targeted the US agricultural sector, where Trump has a strong base of support.

THE FACTS: The notion that China doesn't buy from USA farmers is false.

Liu pointed to three major areas of disagreement: whether to cancel all trade war tariffs when an agreement is reached, the exact size of Chinese purchases of USA goods, and a "balanced" agreement text. The biggest sector affected is a $20 billion-plus category of internet modems, routers and similar devices.

Rising trade tariffs between USA and China. Those cargoes will be charged the original 10% rate. "We are cautiously optimistic about the future". When sizing up the trade deficit, Trump always ignores trade in services - where the USA runs a surplus with China - and speaks only of goods.

"For the interest of the people of China, the people of USA and the people of the whole world, we will deal with this rationally", Liu continued. Unlike many other news organizations, we have not put up a paywall.

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