China cancels trade talks with US after Trump 'tariffs threat'
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Chinese VP Liu He (C) with US Trade Representative Robert Lighthizer (R) and Treasury Secretary Steven Mnuchin (L) at Feb meeting
China will back out of trade talks scheduled for this week with US officials after US President Donald Trump threatened Beijing with increased tariffs.
Iran Press/Asia: Sources close to Chinese Vice Premier office told US and China media that a planned trip of Vice Premier Liu He accompanied by 100 trade officials and executives to Washington on Wednesday will be cancelled after Trump's threats to more than double tariffs on Chinese goods.
"Chinese Vice Premier, Liu He will likely cancel the final round of talks in Washington after Trump's "threat" to hike tariffs on $200 billion worth of Chinese goods," Hu Xijin, editor-in-chief of the tabloid the Global Times, tweeted.
Since @realDonaldTrump has made this kind of threat, I think Vice Premier Liu He will very unlikely go to the US this week. Let Trump raise tariffs. Let's see when trade talks can resume.
— Hu Xijin 胡锡进 (@HuXijin_GT) May 6, 2019
Another source told CNBC that Trump’s decision to more than double the tariff rate on $200 billion of goods was meant to send a message to Liu to not come to the US.
Chinese officials cancelled a trip in late September 2018 in similar circumstances.
This comes as US President Donald Trump dramatically increased pressure on China on Sunday to reach a trade deal, saying he would hike U.S. tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon.
....of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
Trump said in a Sunday afternoon Twitter post that the current 10% tariffs on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% levies on an additional $325 billion of Chinese goods “shortly.” 101/205
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