China: Tariffs by US would wipe out trade progress


"All economic and trade outcomes of the talks will not take effect if the United States side imposes any trade sanctions including raising tariffs", a statement from China's official Xinhua News Agency said.

After the latest round of trade negotiations between the United States delegation, led by Commerce Secretary Wilbur Ross, and China over the weekend, Beijing said "positive and concrete progress" had been made, saying there was "good communication" between both sides on agriculture and energy, while relevant details were yet to be confirmed by both sides, Xinhua reported.

U.S. Commerce Secretary Wilbur Ross leaves a hotel ahead of trade talks with Chinese officials in Beijing Thomson Reuters BEIJING (Reuters) - U.S. Commerce Secretary Wilbur Ross will meet Chinese Vice Premier Liu He on Sunday, as officials from the world's two largest economies try to calm an escalating trade dispute that has rattled financial markets. Ross said at the opening of the meeting the two sides had discussed specific American exports Chinese might purchase, but neither side disclosed details.

After a three-day assembly of finance ministers from the G7 industrial nations that ended Saturday in Canada, Canadian Finance Minister Invoice Morneau issued a abstract saying the opposite six members need Trump to listen to their message of "concern and disappointment" over the USA commerce actions.

The U-S has threatened to implement tariffs on 50 billion dollars worth of Chinese imports. President Donald Trump later ordered his top trade negotiator to seek up to an additional $100 billion in Chinese products to tax. Mnuchin, who announced the truce in mid-May, has been at loggerheads with more protectionist-minded Trump administration figures.

"We've had a situation for many years where China has not treated American companies fairly and the trade deficit has grown and grown and grown", Branstad said in March. "There is set to be a lot of wrestling with the U.S. in this regard", said He.

It referred instead to a consensus they reached last month in Washington, when China agreed to increase significantly its purchases of us goods and services.

More tellingly, the statement warned that promises made at previous talks would not be upheld if the Trump administration carried through on its threat of tariffs.

On the Chinese side, officials including Commerce Minister Zhong Shan, Central Bank Governor Yi Gang, Vice Agricultural Minister Han Jun, and Li Fanrong, vice minister of national energy administration, accompanied Liu in the talks, according to a media pool report.

He has pushed for China to open its markets more to USA agricultural exports, which would give Trump a win to brag about and likely boost his chances of winning farm states like Iowa in the 2020 election.

Trump tweets about jobs report ahead of release
In the span of time between when Trump posted his tweet and when the jobs report was released, US treasury yields shot up. Defying fears of a global trade war, US businesses have made it abundantly clear that they see no reason to stop hiring.

Bruno Le Maire, France's finance and financial system minister, additionally known as the US tariffs unjustified.

Last week, the Trump administration then announced it would roll out duties on Chinese imports worth $50 billion, mainly from the technology sector.

China too threatened a tit-for-tat retaliation but blinked in the end with a categorical undertaking to import more goods from the U.S., sparking off concerns over the likely trade war between the two countries for its potential to create a cascading effect on the global trade order.

The formation of the World Trade Organization and the advent of trade deals like the North American Free Trade Agreement among the U.S., Mexico and Canada reduced tariffs or eliminated them altogether.

Trump enraged USA allies Canada, Mexico and the European Union last week by slapping tariffs on their steel and aluminum shipments to the United States; most other countries have been paying the tariffs since March.

The heightened trade tensions with China come as Trump has angered USA allies, including Canada, Mexico and the European Union, with tariffs on metal imports.

China was also ruffled by the imposition of tariffs on steel and aluminum.

Before Beijing joined the World Trade Organization in 2001, such "technology transfer" often was an explicit requirement for foreign companies that wanted access to China's state-dominated economy.

Those hard issues include what the United States complains is rampant theft of intellectual property, as well as Beijing's support for cutting-edge technologies under its Made in China 2025 policy.

Sometimes, the US will impose additional duties on foreign imports that it determines are being sold at unfairly low prices or are being supported by foreign government subsidies.