BEIJING – China warned on Monday that trade talks with the United Stateswere “impossible” under current conditions after President Donald Trumpreassured markets by suggesting that the dispute could be resolved.
The two sides have announced tit-for-tat tariffs and threatened to hit eachother with more duties, raising the prospect of a trade war that couldrattle the global economy.
Asian markets rose on Monday after Trump tweeted that he saw an end to theescalating dispute before the higher tariffs threatened on hundreds ofbillions of goods would come into effect.
But China’s foreign ministry was less sanguine.
“Up to now, Chinese and US officials have not held any negotiations on thetrade dispute,” foreign ministry spokesman Geng Shuang told reportersduring a regular press briefing.
“Under the current conditions, it is impossible for the two sides to haveany negotiations on this issue,” Geng added.
A few hours later, Trump returned to tougher talk with an early-morningtweet railing against China’s duties on US cars.
“When a car is sent to the United States from China, there is a Tariff tobe paid of 2 1/2%. When a car is sent to China from the United States,there is a Tariff to be paid of 25%,” Trump tweeted.
“Does that sound like free or fair trade. No, it sounds like STUPID TRADE– going on for years!”
Trump had sounded an optimistic tone on Sunday, playing up his personalrelationship with Chinese President Xi Jinping.
“President Xi and I will always be friends,” Trump tweeted.
“China will take down its trade barriers because it is the right thing todo.”
– Mixed messages –
The president’s remarks came weeks after his decision to tax imports ofsteel and aluminium, followed by planned levies on $50 billion worth ofgoods from China over what Washington says is theft of intellectualproperty and technology.
China retaliated by unveiling planned levies on $50 billion worth of majorUS exports, including soybeans, cars and aircraft.
Trump then threatened to impose more tariffs on $100 billion worth ofChinese goods, prompting Beijing to warn that it would stand firm and punchback with great strength.
Trump’s moves, part of his protectionist “America First” agenda, have giveninvestors the jitters, fearing a trade war between the world’s top twoeconomies could reverse a tentative global recovery.
US officials have worked to reassure the business community, thoughmessaging has been mixed and financial markets have roiled.
In TV appearances, Trump’s top economic advisor Larry Kudlow has oftensuggested the tariffs might not go into effect but also warned Friday theywere not just a “negotiating card”.
US Treasury Secretary Steven Mnuchin said the White House hoped tonegotiate but acknowledged a trade war was a possibility. – APP/ AFP