China "broken" in trade talks, will pay through tariffs, says Trump while Beijing promises retaliation

Panama City Beach: President Donald Trump said on Wednesday that China had "broken the deal" in the trade talks with Washington and would face stiff tariffs if no agreement was reached.

"Do you see the rates we are making?" Said Trump at a rally with supporters in Florida. "Because they broke the market. … They broke the market. So, they arrive by plane. The deputy prime minister of tomorrow arrives by plane, but they broke the market. They can not do that. So, they will pay. If we do not conclude this agreement, nothing wrong with earning more than $ 100 billion a year. "

"I have just announced that we will increase tariffs on China and we will not back down until China stops deceiving our workers and stealing our jobs, and that's what will happen, otherwise we do not have to do business with them, "Trump told an enthusiastic crowd. "They broke the market," he added. "They can not do that, so they will pay, and if we do not make that deal, it will not hurt to make more than $ 100 billion a year."
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Trump's comments fueled a series of sales in the Asian markets. Beijing announced that it would react if tariffs increased.
"The Chinese side deeply regrets that if the US tariff measures are implemented, China will have to take the necessary countermeasures," said the Chinese Ministry of Commerce on its website, without giving more details.

The world's two largest economies have been grappling with a tariff war since July 2018, following US demand that the major Asian power adopt policy changes that include better protection of US intellectual property rights. to make the Chinese market more accessible to the United States enterprises.

Recently, it was hoped that an agreement could be reached, but the text of the proposed agreement was deeply torn up last weekend.

Reuters, quoting sources from the US government and the private sector, reported Wednesday that China had backtracked on almost every aspect of a draft trade agreement, threatening to break off negotiations and forcing Trump to order the rate increase.

Trump, who has adopted largely protectionist policies as part of its "America First" program, warned China on Wednesday that she was mistaken if she hoped to delay a trade deal until it came to an end. Democrat controls the White House.

"The reason for China's withdrawal and the tentative renegotiation of the trade agreement is the sincere hope that they will be able to" negotiate "with Joe Biden or any of the very weak Democrats, "Republican Trump said on Tuesday.

"Guess what, it's not going to happen! China has just informed us that they (the Deputy Prime Minister) are now going to the United States to reach an agreement. We'll see, but I'm very happy about more than $ 100 billion a year in tariffs filling the coffers of the United States, "he added.

In response, Kate Bedingfield, Biden's assistant campaign manager, criticized Trump, claiming on Twitter that US farmers, small business owners and consumers were the victims of the tariff battle.

Sarah Sanders, press secretary at the White House, told reporters that the Trump administration had received "the indication" that China wanted an agreement.

US equity indices rebounded slightly from this week's losses after its comments, but the S & P 500 and Nasdaq closed in negative territory against trade caution and disappointing results.

RADICAL CHANGES

Washington calls on Beijing to radically change its business and regulatory practices, including protecting US intellectual property from theft and forced transfers to Chinese companies, limiting Chinese government subsidies and strengthening US access to Chinese markets .

Trump also sought to significantly increase Chinese purchases of agricultural, energy and manufactured goods in the United States to reduce the US trade deficit with China.

Sources close to the talks said that China's latest requests to amend a 150-page document over several months would make it difficult to avoid rising US tariffs on Friday. This increase would affect Chinese imports, from computer modems and routers to vacuum cleaners, furniture, lighting and building materials.

Scott Kennedy, a Chinese expert from the Center for Strategic and International Studies in Washington, said the talks were at a delicate stage and depended very much on the type of proposal Liu was presenting in Washington.

"I think the Trump administration is very serious about the imposition of tariffs," Kennedy said, "I do not think Liu He would have agreed to come in. He was just giving a conference in the United States. "