Washington: President Donald Trump threatened that the trade standoff with China will “get worse" if there is retaliation for US tariffs that go into effect on Chinese goods on Monday.
“I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!" Trump wrote in one of several Twitter messages.
Trump’s comments come after high-level talks between Chinese and American officials broke up on Friday in Washington without a deal. The White House’s top economic adviser, Larry Kudlow, predicted that the impact on US jobs and growth from higher tariffs assessed on Chinese goods would be “de minimis," while conceding that “both sides will suffer" from the trade war.
Trump has repeatedly said that China will pay the tariffs that increased 10 May to 25% from 10% on $200 billion in Chinese goods. Kudlow undercut that in an interview on “Fox News Sunday."
No date has been set for fresh talks. but it’s likely Trump would meet with Chinese President Xi Jinping during the G20 meeting in Osaka, Japan, in late June, Kudlow said.
The ongoing trade fight between the world’s two biggest economies is roiling markets and weighing on projections for global growth.
US equity futures slumped, pointing to a big drop at the open in New York, and stocks declined across Europe and Asia Monday as investors awaited the next phase of the escalating trade war between America and China. The yuan tumbled and Treasuries rallied.