Trade deal was close, but China tried to renegotiate

Trump and China's President Xi Jinping make joint statements at the Great Hall of the People in Beijing

Trade war: Trump says China 'broke the deal' in trade talks

Consumer products - including cell phones, computers, clothing and toys - are especially targeted by the tariff rate increase from 10% to 25%.

The United States is demanding Beijing make sweeping changes to its trade and regulatory practices, including protecting USA intellectual property from theft and forced transfers to Chinese firms, curbs on Chinese government subsidies and increased American access to China's markets.

"We could have made a quickie, but we're in a very good position", Trump said in April, one of several times he has touted the USA economy as leverage for a deal. We can't have that. "It will also invite China to hit back at American businesses, farmers, communities, and families", said Kip Eideberg, vice-president of government affairs for the Association of Equipment Manufacturers, which represents more than 1,000 U.S. makers of farm, construction and mining machinery.

Trump said Thursday that the Chinese wanted to come back to continue negotiations.

Thursday night in Florida, Trump said China "broke the deal" in the ongoing trade talks.

Chinese Vice Premier Liu He leaves the Office of the United States Trade Representative in Washington, Thursday, May 9, 2019, during trade talks between the United States and China.

Commerce Ministry spokesman Gao Feng said the decision to send Liu to Washington despite the tariff hike threat demonstrated China's "utmost sincerity". The sudden change in attitude on the U.S. side has once again cast a shadow of uncertainty over the China-U.S. trade relations.

Trump said China is hoping that a Democrat becomes president in the 2020 election and the new administration will abandon the aggressive trading strategy. "China sets great store on trustworthiness and keeps its promises, and this has never changed".

China has declared repeatedly that it can live with the tariffs, but it would prefer to live without them.

Now, as the President considers what would be his most significant escalation in trade tensions with China, experts say that he may be emboldened by the strength of the stock market, jobs numbers and other economic indicators.

Here's when Marvel will announce its post-Endgame plans
Titanic director James Cameron congratulated the team behind Avengers: Endgame on the movie's box office success. Avengers: Endgame has been in theaters for two weeks, and has become a true pop culture sensation.

Kawhi Leonard Scores 39 Points as Toronto Ties up Series 2-2
Curry, the younger brother of Golden State's Stephen Curry, had 16 points in the first half, 14 of them in the second quarter. The Toronto Raptors are averaging 102.8 points on 46.1 percent shooting and allowing 95.7 points on 40.5 percent shooting.

United States deploys aircraft carrier to Gulf to 'send message' to Iran
It was also said U.S. defences are also concerned about forces in the Gulf and Syria. Iran has said the U.S. is attempting to use "psychological warfare" against them.

President Donald Trump's latest tariff hike on Chinese goods took effect Friday and Beijing said it would retaliate, escalating a battle over China's technology ambitions and other trade strains. 'I don't think Liu He would have agreed to come if he was just going to give the USA a lecture'.

The President's declaration that Beijing is looking to strike an agreement also followed an earlier tweet, in which Trump claimed to know why China backed away from the negotiating table.

In seven chapters of the draft, China had deleted its commitments to change laws to resolve complaints that caused the United States to launch a trade war: theft of USA intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation, sources told Reuters.

The stripping of binding legal language from the draft struck directly at Lighthizer's highest priority.

With no action taken by the Trump administration to reverse the increase the duty rate to 25 percent from the previous 10% by 0401 GMT, investors anxious about further escalation in the trade war that has dogged the global economy for more than a year.

That triggered some short-covering for stocks in early Asian trade though investors remained cautious. Only when those shipments complete the three- to four-week voyage across the Pacific to the US would they face the 25 per cent tariff.

The two sides have already imposed tariffs on billions of dollars worth of one another's goods, creating uncertainty for businesses and weighing on the global economy.

China has vowed to retaliate if the US follows through with plans to hike the tariff at 12:01 A.M. Friday morning.

During the past year of tit-for-tat tariff exchanges, China has imposed tariffs on all but US$10b of its purchases from the US. The deficit is the difference between what America sells to the rest of the world and what it imports.

Latest News