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US gives China a month for trade deal as talks deadlocked
(May 11): President Donald Trump’s administration told China it has a month to seal a trade deal or face tariffs on all its exports to the US, even as both sides sought to avoid a public breakdown in negotiations despite a developing stalemate.
The threat was made during talks Friday in Washington, hours after Trump upped the ante by imposing a second round of punitive duties on US$200 billion in Chinese goods. The talks are under close scrutiny across global financial markets, and US stocks turned positive after negotiators on both sides said the session had gone fairly well.
In a series of tweets that cheered markets, Trump declared Friday that the talks with China had been “candid and constructive.” “The relationship between President Xi and myself remains a very strong one, and conversations into the future will continue,” he said. Further talks are possible, but there’s no immediate plan for the next round, according to a person familiar with the negotiations.
Earlier, in a meeting with Chinese Vice Premier Liu He, US officials laid out their bottom line, telling him that Beijing had three or four weeks to agree to a deal or face additional 25% tariffs on a further US$325 billion in exports to the US, according to people familiar with the talks. The threat came in response to the lack of any meaningful concessions by China during two days of meetings, the people said.
In a statement late Friday, US Trade Representative Robert Lighthizer said the administration would release details of its plans for tariffs on roughly US$300 billion in imports from China on Monday, setting the process in motion for Trump to deliver on his latest threat.
The lack of progress left major question-marks hanging over the search for a deal on trade - just one source of tensions in a growing geopolitical rivalry that’s already shifting supply chains and testing established economic and security alliances.
In an interview Friday with Chinese State broadcaster CCTV, Liu said both sides agreed to keep talking despite what he called “some temporary resistance and distractions," and to hold future meetings in Beijing. He dismissed the idea that talks had broken down. “It’s normal to have hiccups during the negotiations. It’s inevitable.”
‘Equality and dignity’
He also struck a note of defiance. “For the interest of the people of China, the people of US and the the people of the whole world, we will deal with this rationally," the vice premier said. “But China is not afraid, nor are the Chinese people,” adding that “China needs a cooperative agreement with equality and dignity.”
Chinese State media released a statement of the official view of fault-lines in the talks. In a commentary published Saturday, Xinhua news agency said the two sides differ on whether or not all tariffs should be removed as part of an agreement. The second sticking point is on the amount of purchases China should make in order to even the trade balance. The third is on the “balance” of the text - Chinese commentators have long signaled that they see the agreement as being one sided and damaging to Chinese sovereignty.
In a series of morning tweets Trump, who is seeking re-election on the back of a booming US economy, sought to justify his decision to hike tariffs as well as to convince businesses and financial markets that he wasn’t walking away from a deal.
No rush
“There is absolutely no need to rush,” the US president said. In another tweet, Trump proposed a vast new plan to use income from tariffs to buy up the crops of American farmers who’ve watched their exports to China collapse, and send them to poor countries as aid.
The presidential good humour hid what people familiar with the discussions say has been an increasingly gloomy mood around the negotiations in recent days.
In a call with Trump supporters on Friday, trade adviser and China hawk Peter Navarro said the two sides hadn’t reached a deal yet.
He also denied that the Trump administration’s actions amounted to a trade war, telling supporters that the US was defending itself against a China that did not obey international norms, according to two people on the call.
Before the rebound late Friday, US markets had posted their worst week of the year so far, as the trade truce that had been in place for months was shattered by the new US tariffs.
The S&P 500 recovered from earlier losses Friday, ending the day 0.4% higher.
Election year
This week’s tariff move is likely to have significant short-term consequences for retailers and other US businesses reliant on imports from China. But extending it to all trade would increase the economic and political stakes even further for Trump and American businesses.
Such a step would see price increases on smartphones, laptops and other consumer goods - the kind that Trump’s advisers have been eager to avoid, out of concern for the fallout. It would likely provoke further retaliation, and some economists are predicting it could even tip the US economy into recession just as Trump faces re-election in 2020.
Those risks are one reason why some analysts believe the two sides will eventually strike a deal.
“It is in both sides’ interest to keep talking," said Clete Willems, who until last month served as director of international economics on Trump’s National Economic Council. “I don’t think there is any reason that we can’t still have an agreement. There was a lot of progress made over the last four or five months and we shouldn’t throw that away.”
‘Gets harder’
But this week’s talks have also amplified the differences that remain between the two governments, as they try to navigate their own domestic politics as well as a growing international rivalry.
Securing a trade deal is likely to get harder from here unless outside factors, such as an economic downturn, force a compromise, according to Ely Ratner, a China expert who served in the administration of President Barack Obama and is now director of studies at the Center for a New American Security think-tank.
“The question is can the Chinese come back and offer enough such that Trump can sell it?" he said. “I think it is going to be hard for them to do that in the face of Trump escalating. I think it gets harder as this thing goes on, and it gets harder politically for Trump."
- Bloomberg
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Discussions
1 person likes this. Showing 31 of 31 comments
Don't be fooled by Donald Duck again and again when he use the word 'may' or 'may not' further impose new tariff on $ 325 billion Chinese export.
Take it face value as he mentioned already instructed his officers to work on additional tariff on ALL GOOD IMPORTED FROM CHINA.
So, it is prudent to make provision ALL EXPORT TO US WILL BE SUBJECTED TO 25% TARIFF and may further revise upwards.
2019-05-11 17:20
This spoiled brat, bully, liar, cheater, and tyrant wants to DICTATE TO China instead of NEGOTIATE WITH China. China should reduce buying US goods and start taxing heavily the profits of US companies operating in China. This will send a clear message to Dotard Trump.
2019-05-11 17:31
The bully is running out of time
China can wait
But his election in 2020 cannot wait
2019-05-11 17:34
War on China is very popular back home.....war on China is Trump ticket to second term....don't count Donald Trump out yet....unless US gets into recession before Nov 2020.
2019-05-11 17:40
War on China is very popular back home.....war on China is Trump ticket to second term....don't count Donald Trump out yet....unless US gets into recession before Nov 2020.
From China perspective , China is guided by history and China cannot tolerate another Unequal Treaty on the 100 anniversary of Beijing student protest...............that much is clear.
2019-05-11 17:43
how come no one is benefiting from this trade war? any chance for Malaysia?
2 side have blocked trade significantly...someone else must be filling the gap...
What la man...
2019-05-11 17:46
Posted by probability > May 11, 2019 5:46 PM | Report Abuse
how come no one is benefiting from this trade war? any chance for Malaysia?
==============
the issue is if the cake is smaller , would a bigger bite of a smaller cake be better or worse?
there will be disruptions , there will also be growth.
2019-05-11 17:49
China will eventually emerge as victor.
Donald Duck still think US is world largest economy?
Yes. It is, but only if and only if GDP is measured in USD.
Workers in US earn 3.5 times more in terms of USD.
Average monthly salary net of tax in US $3057 per mth, vs China $888 per mth
If they earn only 2 times more, China GDP is world number one.
Everything in US is at least 3-4 time more expensive than China
https://www.youtube.com/watch?v=yIXLA04FDHw
2019-05-11 18:15
China playing hard to get really got the duck all worked up.
He sounds more and more like a desperate housewife as time passes by.
Chinese people are resilient and don't mind some hardship.
Can you say the same about those obese and diabetic yankees?
I read somewhere that 70% of yankees unable to cough up even 1k dollar in an emergency.
High debt no savings that's a recipe for disaster.
2019-05-11 18:35
Trump is more desperate now. Xi can wait n response at own sweet pace. Btw which company will benefit from this scenario....anyone
2019-05-11 18:45
There were many unequal treaties China was forced to sign more than 100 years ago especially by the Japanese,british and the French when China.was weak. China will not.bow to any pressures now.
2019-05-11 18:54
The way of deal pushing by US may seems bullying, but the controlled market created by China by giving special rebate or other advantages to certain industrial for china company has disturbed the free market... a good example is the solar industry which the pioneer German manufacturer ended in closing up the operation..
2019-05-11 23:04
Look like there wont be a 'real' deal at all. Both Side select continuing talk is to avoid the worst outcome. For China, to challenge US, mean to Challenge Western Country. As western Country tendto follow US eg germany restrict China Investment rule.
2019-05-12 04:21
chips.... that is Trump reelection slogan... trade war is Trump ticket to second term... and disaster for the rest of us have
2019-05-12 11:02
Idiot said he was in no hurry to make a deal with China and now he is urging China to quickly conclude a deal. He's nothing put a liar, cheat, a bankrupt and a 'little man'!
2019-05-12 11:10
On May 8, 2018, Trump announced the U.S. would reimpose sanctions on Iran, leaving other nations involved scrambling to salvage the pact. If Trump can discretionally dishonor Iran nuclear deal, where is his crediblity even if Sino-US deal signed? This fellow is unrealiable. China just be ready with 25% tariff. Malaysia, Thailand, Ireland, Indonesia, Vietnam, India, S. Korea all have surplus with US may have same fate with import tariff under this moron. Shifting to Vietnam/ Asean to evade China tariff is not going to work. wakaka
2019-05-12 11:18
Asia may not have to agree with China politically 100%. But, Asia must work together with China to promote open trade, currency swap, accept RMB as one of world reserves to confront this moron US. Cut off USD in all regional trade. USA has nothing to offer to Asia except conflict, political chaos, instability to this region by congesting South China sea. Look at what happen to Middle East when moron US intervene. USA, India has no claim on part of South China sea, but why BUSYBODY doing warfare drill in South CHina sea. all these DEMONS work together to bring instability only.
2019-05-12 11:32
How USMCA came about?
Is it not because Donald Duck dump NAFTA and replace with new treaty favorable only to US?
Donald Duck war strategy is to attack one after another.
Easier to deal with bilateral talk.
Why he walked away from Trans Pacific Trade Agreement?
He will then has to deal in multi-lateral trade nego which he can't manipulate.
If China surrender, do you think India stand a chance?
Do you think EU stand a chance?
Brazil?
All to fall one by one.
By then, Russia will be without friendly country to rely.
Either it will fail like Soviet, or become Africa of the 90's.......
2019-05-12 11:40
Fish and Chips > May 12, 2019 12:30 PM | Report Abuse
Qqq! Let's make things very clear!
==========
learn happy and positive.
your life better country better.
2019-05-12 12:36
Oh sorry I stepped on the FISH TAIL and the FISH HEAD got angry.
Eat your own bla bla bla shit lah FISH HEAD.
2019-05-12 12:57
as for US- China trade wars, 5 reasons for the tensions and 3 reasons why it represents an opportunity for us...........
https://www.youtube.com/watch?v=09AXh7FL3ak
2019-05-12 12:57
as for US- China trade wars, 5 reasons for the tensions and 3 reasons why it represents an opportunity for us........... and all the 3 reasons are spelled China...........Look East.
2019-05-12 12:58
Brainstorm to make money......hahahahah roflmao
With your pea sized fish brain don't waste your time lah.
Better go find some blablablashit to eat.
2019-05-12 13:11
No deal I trade of US-CN. Accept the fact. Now they just created soft landing period to reduce big viotility .
2019-05-12 19:58
the market will auto adjust, US-CN deal fail, sure they will find solution one. wont let it worst forever. everyone also need cari makan.
2019-05-12 20:50
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China cannot tolerate another Unequal Treaty...............that much is clear.
2019-05-11 16:16