WASHINGTON (AP) President Donald Trump said Friday there was no need to rush to get a trade deal with China, hours after he raised tariffs on $200 billion in Chinese goods, escalating a battle over Chinas technology ambitions.
U.S. and Chinese negotiators met briefly Friday in an effort to revive negotiations even as the Trump administration increased duties on nearly half of Chinese imports to 25% from 10%. Chinas Commerce Ministry said it would impose necessary countermeasures but gave no details.
The increase went ahead even after American and Chinese negotiators began more talks in Washington on Thursday aimed at ending a dispute that has disrupted billions of dollars in trade and shaken global financial markets. After a short session on Friday, the lead Chinese negotiator, Vice Premier Liu He, left the Office of the U.S. Trade Representative about midday, though it was not immediately clear whether talks had ended. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin shook hands with Liu as he left.
The risk of a complete breakdown in trade talks has certainly increased, Michael Taylor of Moodys Investors Service said in a report.
But Trump tweeted that his tariffs, which went into effect just after midnight, will bring in FAR MORE wealth to our Country than even a phenomenal deal of the traditional kind. Also, much easier & quicker to do.
In fact, tariffs are taxes paid by U.S. importers and often passed along to consumers and companies that rely on imported components.
The developments sent stocks tumbling on Wall Street.
American officials accuse Beijing of backtracking on commitments made in earlier rounds of negotiations.
China deeply regrets that it will have to take necessary countermeasures, said a Commerce Ministry statement.
The administration bought a little extra time for talks to work: According to the filing Wednesday in the Federal Register, the tariff hike wont hit goods that have already left Chinese ports before Fridays deadline.
So the tariffs wont start taking affect until those shipments complete the three- to four-week voyage across the Pacific Ocean.
U.S. business groups appealed for a settlement that will resolve chronic complaints about Chinese market barriers, subsidies to state companies and a regulatory system they say is rigged against foreign companies.
American companies disagree with tariff hikes but are supportive of the idea in the short term if it helps us get to a strong, enforceable, long-term agreement that addresses structural issues, said Greg Gilligan, the deputy chairman of the American Chamber of Commerce in China.
The latest increase extends 25% duties to a total of $250 billion of Chinese imports, including $50 billion already taxed at 25% before the new hike. Trump said Sunday he might expand penalties to all Chinese goods shipped to the United States.
Beijing retaliated for previous tariff hikes by raising duties on $110 billion of American imports. But regulators are running out of U.S. goods for penalties due to the lopsided trade balance.
Chinese officials have targeted operations of American companies in China by slowing customs clearance for them and stepping up regulatory scrutiny that can hamper operations.
