China warns US no deal if tariffs go ahead

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China warned the United States on Sunday that it will scrap any agreements reached on trade between the two countries if Washington imposes new tariffs.

On Saturday, Trump weighed in on the trade situation with other countries.

The other U.S. trade team members include U.S. Ambassador to China Terry Branstad, Under Secretary of Treasury for International Affairs David Malpass, Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney, and U.S. Trade Representative (USTR) Chief Agricultural Negotiator Gregg Doud, according to a White House statement released earlier on Sunday. The US says it has Dollars 375 billion trade deficit in USD 636 billion total trade previous year. "To suggest that it's news that Congress would want to reclaim powers that belong to the executive branch, I don't think is exactly newsworthy", he said on CNN.

Earlier, Mnuchin had pointed to a rocky road ahead for the USA, which is now embroiled in trade disputes on two fronts, after talking about Washington's China policy.

"Knowing that at the end of the day Trump has no stomach for a debilitating trade war, Beijing's strategy is to manipulate and play the U.S., and without giving back any meaningful concessions", he said.

US Commerce Secretary Wilbur Ross and Chinese Vice Premier Liu He held talks at the weekend, which ended with Beijing warning that any deals would be void if Washington follows through on threats to impose massive tariffs on Chinese goods.

United States tensions with China had eased after Beijing promised on May 19 to "significantly increase" purchases of farm goods, energy and other products and services following the last round of talks in Washington.

British Prime Minister Theresa May outlined her deep disappointment at "unjustified" U.S. steel and aluminium tariffs in a phone call with President Donald Trump on Monday (June 4), her office said.

Kuijs of Oxford Economics said an extended conflict could lead to a "technological cold war" that would carve up the global market into isolated regions with different standards for mobile phones and other products.

There was no indication whether the talks also took up American complaints that Beijing steals from or pressures foreign companies. Navarro later called Mnuchin's conciliatory comments "an unfortunate soundbite".

Some people familiar with the matter have told Reuters that approval may depend on progress of broader talks and a reprieve from a US government ban on sales by USA companies to China's ZTE Corp, penalised for illegally supplying telecommunications gear to Iran and North Korea. That would amount to more than one-third of Chinese imports of American goods. The 50-member strong United States raised topics including additional Chinese purchases of USA exports. "Our established rhythm will not change", said Xinhua, China's official news agency.

Federal officials are having talks with steel and aluminum industries about possible aid, Innovation Minister Navdeep Bains confirmed Monday.

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Chinese state media have glossed over why the United States sales ban was imposed: ZTE's ties to North Korea and Iran. Mr Trump has also complained about barriers U.S. firms face in Europe and elsewhere.

The world's two largest economies have been at loggerheads over trade and industrial practices for months with the talks under way in the Chinese capital the third formal round of negotiations.

Galimberti said he'd like to see those counter-tariffs come into effect as quickly as possible "so there's not a window to ship unnecessarily into Canada without a tariff while there are tariffs applied on goods going into the United States". "They agreed to discuss this, and wider issues of free and fair global trade, further at the G7 summit later this week".

Canadian Prime Minister Justin Trudeau: "These tariffs are totally unacceptable". Germany is also hoping its steel exports to the USA will be exempted from sanctions.

Bruno Le Maire, France's finance and economy minister, was blunt in his assessment of the meeting.

Zimmerman said: "Trump's threat of sanctions, the internal infighting among the U.S. team, and lack of a sensible Plan B is not a cohesive strategy but evidence of a desperate desire for a deal, any deal".

Given that the "framework" reached at the previous U.S. Liu's delegation included China's central bank governor and commerce minister.

China's exports have mushroomed since it joined the World Trade Organization in 2001, making it the world's second-largest economy.

China has promised to "significantly increase" purchases of farm goods, energy and other products and services.

China will also open its financial services market to foreign companies, and lift foreign ownership restrictions on electric auto manufacturers, prompting Tesla to register a company in Shanghai last month.

He said that China "already charges a tax of 16% on soybeans".

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