China may cancel trade talks with US after Trump’s tariffs threat: Reports

‘The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!’ US president Donald Trump said in his Twitter post.

China is considering cancelling the scheduled trade talks with the United States (US) this week, sources from The Wall Street Journal and CNBC said, after US president Donald Trump threatened to hike tariffs as the trade deal was deemed to be moving ‘too slowly’.

On Sunday, Mr Trump tweeted that the current tariffs on US$200 billion worth of Chinese goods will rise to 25% on Friday, from the previous 10%. The US president also threatened to tax an additional US$325 billion worth of untaxed goods at 25%.

‘The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!’ he said in his Twitter post.

Mr Trump’s tweet response arrived after US trade representative Robert Lighthizer updated him with details that China was pulling back from previous commitments.

Sources told news agencies China’s vice premier Liu He will likely cancel the trip planned for himself and a 100-person delegation for a round of trade talks this week. Observers had been speculating on a possible deal breakthrough from this week’s talks prior to the changes this week.

The US has been pushing for structural changes from China in their trade arrangement, such as the requirement to share technology for US companies that operate in China.

Wall Street’s stock index futures fell sharply on Sunday after Mr Trump’s recent comments on the US-China trade war as investors took risks off the table on concerns that the trade progress could stall.

The S&P 500 e-minis fell 40 points or 1.36%, with 93,139 contracts changing hands while the Dow e-minis fell by 358 points, or 1.35%, with 14,154 contracts changing hands.

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