United States plans more aid for farmers amid China trade spat

New tariffs set to kick in as US-China trade talks to continue

Robert Lighthizer and Steven Mnuchin after meeting with Chinese Vice Premier Liu He in Washington DC

-Chinese relations may be testing a new low.

Concerns have grown that the protracted trade war could further roil global markets and cast a shadow over the world economy.

On Thursday the US and Chinese trade negotiators ended the first of two days of talks aimed at saving a trade deal even as President Donald Trump said the new "very heavy tariffs" on Chinese products would go ahead. He announced substantial increases in USA tariffs, to 25%, on $200 billion in Chinese imports.

But the widening divide between Washington and Beijing goes beyond trade. -China trade war would have a "very serious" negative effect on both the United Kingdom and global economies. "For China, we think this is a very serious issue and can not compromise on it easily".

The possible success of a comprehensive trade deal between China and the US could have laid the basis for a larger one regulating their relations and reducing the odds that their strategic competition with one another could one day lead to conflict, which is why it's such a pity that everything apparently fell through at the very last minute.

At least they agreed to keep talking.

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THE FACTS: In addition to repeating the canard that China pays the tariffs, he's failing to account for the damage that tariffs can do.

Trump justified the higher tariffs with a string of bogus economic logic, proclaiming on Twitter that the tariffs will make the USA economy stronger and bring more wealth to the United States. Because it means that trade tariffs will go up, fewer goods will circulate around the world, we won't be able to circulate our own French goods as easily around the world, and jobs will be destroyed. China said it was forced to retaliate against the USA pressure.

However, any funds from United States tariffs go into the U.S. Treasury's general fund, and Congress - not the White House - directs USA spending. Beijing has vowed to retaliate for the US action. Rather, the CTA says they are paid for by "U.S. consumers, workers and businesses". Despite the USA tariff threat, China acted in a responsible manner and still sent its delegation to Washington to continue consultations.

The two sides have been unable to reach a deal thanks, in part, to differences over the enforcement of an agreement and a timeline for removing the tariffs.

One of those is over tariffs, Liu said, according to a transcript of the Q&A published by Phoenix, a Hong Kong-based television station that is close to Beijing.

Yang Delong, chief economist at First Seafront Fund Management in Shanghai, told AFP that the "sudden hardening" of Trump's tone is likely linked to the 2020 United States presidential election.

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"It was their idea to come back" and resume discussion ahead of the Friday deadline for additional tariffs, the president said.

Kind said the president's one-on-one trade war approach is making it easier for China to hurt Wisconsinites.

Liu pointed to three major areas of disagreement: whether to cancel all punitive tariffs when an agreement is reached, the exact size of Chinese purchases of USA goods, and a "balanced" agreement text.

A commentary by China's official news agency Xinhua also on Saturday appealed to the USA not to make "unilateralist moves" that will harm the global interests, pointing to the upheaval in the markets after President Trump announced last week he was raising tariffs on China.

"A real enforcement mechanism is critical", the American Chamber of Commerce in Shanghai said in a statement.

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