China could cancel trade talks after Trump tariff threat, sources said



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US President Donald Trump (right) and Chinese Vice Premier Liu He meet with reporters in the White House's oval office at the White House on April 4, 2019 in Washington, DC.

Chip Somodevilla | Getty Images

China may withdraw from trade talks this week with US authorities after President Donald Trump has threatened Beijing to raise tariffs.

Trump said Sunday afternoon on Twitter that the 10% tariff on $ 200 billion of Chinese products would increase to 25% on Friday. He also threatened to impose 25% taxes on an additional 325 billion dollars of Chinese products "soon".

Chinese Vice Premier Liu He had planned to bring a large delegation to Washington Wednesday to conclude a trade deal – and there had been talk in recent days of a result that could look like an agreement. Instead, two informed sources on the talks said the Chinese side could pull out of this week's talks.

This was linked to Trump's new threats, they said, which give up a six-month truce after Beijing embarrassed itself for some of the commitments discussed earlier.

A source said the Chinese vice premier is likely to cancel the planned trip for himself and a 100-strong delegation for the last round of talks, which US officials say could lead to a here Friday. The Chinese authorities canceled a trip in late September 2018 under similar circumstances.

A second source said Trump's decision to do more than double the $ 200 billion customs duty rate was supposed to send Liu the message of not coming to the United States with more "d & # 39; empty offers ".

The White House, the Treasury and the US Trade Representative's office did not immediately respond to CNBC's requests for comment.

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