China threatens to hit back as USA imposes sweeping tariffs

Donald Trump has raised import duties on US$250 billion of Chinese goods

Donald Trump has raised import duties on US$250 billion of Chinese goods

The U.S. was scheduled to raise the tariffs at 12:01 a.m.

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.

Liu said on his arrival in Washington that the prospects for the talks were "promising", but warned that raising tariffs would be "harmful to both sides", and called instead for cooperation. He appealed to Washington to avoid more tariff hikes, saying they are "not a solution" and would harm the world.

"We should not hurt innocent people", Mr Liu told CCTV.

"We were getting very close to a deal, then they started to renegotiate the deal", said Trump Thursday in the Roosevelt Room of the White House.

Trump also has sought massive hikes in Chinese purchases of U.S. farm, energy and manufactured products to shrink a gaping United States trade deficit with China.

This week's setback was unexpected.

The Trump administration wants Beijing to accept an enforcement mechanism with penalties to make sure it carries out its commitments.

Trump told supporters at a rally in Florida on Wednesday that China "broke the deal", and vowed not to back down on imposing new tariffs on Chinese imports unless Beijing "stops cheating our workers". They wouldn't identify the specific issues involved.

Chinese producers said the abrupt tariff hike announcement wreaked havoc on operations and would bring high costs, layoffs and further shifts of production to Southeast Asia.

US officials say they got an inkling of China's second thoughts about prior commitments in talks last week in Beijing but the backsliding became more apparent in exchanges over the weekend.

The Chinese government has threatened to retaliate if tariffs are raised tonight.

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He also said he'd go further and slap 25% tariffs on another $325 billion in Chinese imports, covering everything China sells the United States.

Imposing new tariffs on China as President Donald Trump has suggested would hurt US businesses and keep companies like Ohio's Cleveland Whiskey from exporting their products to other countries and hiring more workers, business groups fighting the tariffs told reporters on Thursday.

Since July a year ago, China has cumulatively imposed counter-tariffs of up to 25 percent on about $110 billion of USA products.

Goldman Sachs told clients in a note...

A sticking point is US insistence on an enforcement mechanism with penalties to ensure Beijing lives up to its commitments. US oil prices also slid, though Brent oil futures settled higher after Trump cited the letter from Xi. "This also leaves an opportunity for the two sides to reach an agreement in the next couple of weeks, though challenges remain".

However, China doesn't really have other good options for where to park its $3.1 trillion in foreign-currency reserves - the world's largest stockpile - making this an unlikely path, according to Ed Al-Hussainy of Columbia Threadneedle Investments.

The questions we have, however, center on where the president is leading us on trade and what impact that could have on the economic engine.

The men were detained in apparent retaliation after Canada arrested an executive of Chinese tech giant Huawei on US charges of bank fraud.

A full-blown trade war between Washington and Beijing would send shockwaves through the global economy - investors registered their concern by posting steep declines in stock markets this week.

The Dow Jones Industrial Average was down 376.59 points, or 1.45 per cent, at 25,590.74. Earlier, Germany's DAX index shed 1.7 percent and France's CAC 40 lost 1.9 percent. Hong Kong's Hang Seng gained 0.9% to 28,543.86, while the Shanghai Composite gained 1.5% to 2,898.34 after briefly trading 2% higher.

Asian stocks were down overnight, with Japan's Nikkei 225 retreating almost 1 percent and Hong Kong's Hang Seng down 2.4 percent.

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