The Trump administration has threatened tariffs increases on $200 billion of Chinese goods and now it is up to President Trump and Chinese President Xi Jinping to come to an agreement to avoid further tariffs and trade tension.
An aerial photo looking north shows shipping containers at the Port of Seattle and the Elliott Bay waterfront in Seattle, Washington, U.S. March 21, 2019.
"Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch!"
Some analysts say the dispute could force China to make reforms that will eventually strengthen its economy. As of now, he can boast of historically low unemployment numbers, positive economic growth and stock market highs. "That doesn't sound like much, but if it happens when there's a broader slowdown, it adds to the momentum and can make matters much worse", he says.
Last July, Trump began gradually imposing tariffs on Chinese imports.
But Trump's bet carries obvious risks.
The Chinese Commerce Ministry said it "deeply regrets" the move and warned it would take "necessary countermeasures". Last week, when Trump claimed that China was paying billions of dollars to the USA because of the existing tariffs, many people immediately pointed out what a number of economists had already noted: That it was American companies and consumers who ultimately pay for products affected by import tariffs.
The US has upped duties on €180 billion worth of goods after accusing China of going back on previous agreements, created to answer American concerns on issues such as access to markets and intellectual property rights.
On 5 May, Trump erupted on Twitter, saying the talks were progressing "too slowly", accusing the Chinese of backing out of commitments and announcing the tariff increase.
US stocks closed higher Friday, clawing back from heavy intra-day losses, but the S&P500 index still registered its worst since just before Christmas.
"Investors are starting to fear that trade wars aren't as easy to win as the president has been declaring", said Ed Yardeni, president of Yardeni Research.
But in a series of early morning tweets Friday, he said there was "absolutely no need to rush".
He promised to protect farmers, including a plan to buy surplus agricultural products with taxpayer dollars and send the goods overseas as humanitarian assistance.
This is evident from Liu's continued presence in Washington and China's muted response. "In the meantime, we will continue to negotiate with China in the hopes that they do not again try to redo deal!" said the US President. After a few hours, the talks went wrong, The New York Times reports.
Trump has also threatened to impose additional tariffs on another $325bn of Chinese goods, covering nearly everything China exports to the US. "President after president has done nothing".
Meanwhile, the recent round of US-Chinese trade talks concluded Friday without any agreement, but the sides have agreed to meet for the next round of negotiations in Beijing. "These massive payments go directly to the Treasury of the US", he said. The president, though, is a skeptic of multilateralism and has expressed disdain for global institutions such as the World Trade Organization. "After all, China still produces a lot", said Chong. "And I'm not supportive of it in its current form".
- With assistance from Shawn Donnan, Jennifer Jacobs and Ye Xie.