China considers cancelling trade talks with US

Tariffs on $200B will go from 10% to 25

Tariffs on $200B will go from 10% to 25

Trump administration officials believe that China's own nationalists have pushed back on some of the terms agreed by its trade negotiators, arguing that they would be humiliating to China and its leader, Xi Jinping.

Trump's acting chief of staff Mick Mulvaney and Treasury Secretary Steven Mnuchin last week began publicly ramping up pressure on China to reach a deal, warning it could still walk away from the months-long negotiations. The president has continually said America is getting the short end of the stick when it comes to our trade agreements with China.

"That may not be forever if the talks don't work out", he said.

Trump also said on Sunday that tariffs paid by China "are partially responsible for our great economic results", although it is companies that import Chinese goods, not China itself, that pay the bulk of the additional costs.

Trump also raised the possibility of imposing a 25 per cent tariff on another US$325 billion in imports from China not now covered.

As recently as last week, the U.S. had depicted the trade talks as going smoothly.

The U.S. -China trade dispute kicked off in March 2018, when the Trump administration criticized the Chinese regime for its agenda of stealing intellectual property (IP) from U.S. companies, arguing that it damaged the U.S. economy.

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US-China trade talks are due to resume this week, with Chinese Vice Premier Liu He due to travel to Washington.

The president also said he would target another $325 billion of Chinese goods with 25 per cent tariffs "shortly" and he suggested that the measures were not leading to price increases for American consumers. He has railed against America's trade deficit in goods China, which swelled a year ago to record $419 billion.

But in December, on the sidelines of the G-20 summit, Trump and Xi agreed to a 90-day truce, in which Beijing promised to import more USA agriculture and energy products, and crack down on illegal fentanyl coming into the United States.

Mr. Trump has portrayed his tariffs as a moneymaker for the United States and a benefit to the US economy. -China trade deficit by fair trade.

Both sides, representing the world's two biggest economies, have said progress is being made.

In recent days, US officials grew frustrated with some of China's backpedaling on some of their earlier commitments, including on the crucial matter of technology transfer, two people familiar with the situation said.

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