Published: Wed, May 08, 2019
World Media | By Shelia Harmon

Seeking to avert higher tariffs, China dispatches top negotiator to U.S.

Seeking to avert higher tariffs, China dispatches top negotiator to U.S.

This is what China has done throughout the so-called trade war and this is not likely to stop just because of Trump's last minute tariff hikes. 'The Tariffs paid to the U.S. have had little impact on product cost, mostly borne by China.

A day later, Treasury Secretary Steven Mnuchin and the top USA trade negotiator, Robert Lighthizer, said that China was reneging on commitments it made in earlier rounds of negotiations.

Trump tweeted over the weekend that tariffs on $200bn (£153bn) worth of goods from China would be cranked up to 25 per cent this Friday from the current rate of 10 per cent, in a sign that the two sides remain at loggerheads.

"We have always had some reservations", Do told Yahoo Finance's "The First Trade".

The United States accuses China of resorting to predatory tactics in a drive to give Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles. "If the Trump administration follows through with the tariffs threats on Friday, I think it means the talks fall apart".

He said that $325 billion of other, Chinese goods remain untaxed now, but they won't stay that way for long.

We're negotiating in good faith. Over the course of last week we have seen an erosion of commitments by China. The Chinese have retaliated by targeting $110 billion in USA imports. Economists from the Federal Reserve Bank of NY and Columbia and Princeton universities found in a recent study that the US consumers and businesses, not China, were paying for the cost of the tariffs, which had resulted in $3 billion a month in higher taxes. Festering trade worries could hurt Mr. Trump's re-election chances, while ending the dispute would boost the Chinese economy.

His words were echoed by Treasury Secretary Steven Mnuchin, who indicated that Beijing was backtracking on the "language [of the deal] that had been previously negotiated", which could alter a future trade deal "dramatically". "That in our view is unacceptable".

The tougher rhetoric from the USA on trade surprised investors who had been expecting that the world's biggest economies would come to some sort of agreement. China wants the tariffs to be removed, while US officials want to keep some, if not all, as part of any final deal, to ensure China lives up to its commitments. It would be hard to overcome this setback and reach agreement on other sticking points, such as subsidies and cloud-computing access, in just two days of talks, the person said.

Still, this latest news is bound to buoy markets after a mini-meltdown on Monday. The only trade deal that's been completed under Trump's watch-a rewrite of the North American Free Trade Agreement (NAFTA)-is more protectionist than the old version.

The Chinese delegation is expected in Washington for talks set for Thursday evening and Friday, U.S. officials said.

Sen. Bernie Sanders, another high-polling Democratic presidential contender, said Biden is "wrong" and China has taken 3 million jobs from USA workers.

"I still think that eventually we will see a deal that results in relatively minor changes to the US-China economic relationship", he added. One measure of fear in the market, which tracks how much traders are paying to buy protection from price swings in the S&P 500, had its biggest jump Tuesday in almost seven months.

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