China still 'cautiously optimistic' on US trade talks despite new tariffs

China still 'cautiously optimistic' on US trade talks despite new tariffs

China still 'cautiously optimistic' on US trade talks despite new tariffs

China and the United States have agreed to hold more trade talks in Beijing, Vice Premier Liu He said as U.S. President Donald Trump ordered his trade chief to begin the process of imposing tariffs on all remaining imports from China.

China's lead negotiator has said Beijing will not compromise on its principles as two days of trade talks between the United States and China have broken up with no agreement.

It is worth noting that the US Trump Administration increased the tariff on the billions of dollars worth products imported from China from 10 percent to 25 percent on Friday. China said it would take countermeasures. Later that day, Trump ordered tariffs to be raised on all remaining United States imports from China, which are valued at around $300 billion.

The two countries also have different views on the amount of purchases to be carried out by China, which the commentary said should be "in line with real demand", Xinhua News Agency wrote in a commentary published Saturday. "At no time will China forfeit the country's respect, and no one should expect China to swallow bitter fruit that harms its core interests", said a commentary, due for Monday publication, in the ruling Communist Party's People's Daily.

However, Trump defended his decision to raise tariffs, saying there was no need to rush into a deal and adding that the American economy would be boosted more by the levies than by an eventual deal.

The Global Times said the US is wrong in "believing China is unilaterally benefitting from China-US economic and trade relations".

China for the first time made clear what it wants to see from the U.S. in talks to end their trade war, laying bare the deep differences that still exist between the two sides.

The trade war between the world's two biggest economies is the bitterest since the 1930s.

He said: "We have already seen a negative effect of forecasts for global growth largely caused by trade tensions between China and the United States, so this is a worry".

"We think there are a lot of options as far as extension or asking for a new investigation, but this does seem something that hasn't gotten a lot of press given the situation with China", she said.

Those laws include Section 232 of the Trade Expansion Act, which Trump cited to enact tariffs on steel and aluminum imports from China, Canada, Mexico and elsewhere. A study by economists from the Federal Reserve Bank of New York, Columbia University, and Princeton University found that the burden of Trump's tariffs - including taxes on steel, aluminum, solar panels falls entirely on USA consumers and businesses who buy imported products.

Sen. Rand Paul, R-Ky., said Sunday that he has warned the Trump administration against leveling more tariffs against China, arguing that they will cancel out any benefits companies received from the administration's recent tax cuts.

That threat was made during talks Friday in Washington, hours after Trump upped the ante by imposing a second round of punitive duties on $200 billion in Chinese goods.

Treasury Secretary Steve Mnunchin told CNBC no further trade talks are planned between the two sides "as of now".

Mexico on June 5, 2018 imposed tariffs of up to 25% on American steel, pork, cheese, apples, potatoes and bourbon, in retaliation for U.S. tariffs on Mexican metals.

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