East Asia

China Cancels Trade Talks With US After New Tariffs

Mike Starkey offloads soybeans from his combine as he harvests his crops in Brownsburg, Indiana, Sept. 21, 2018. The U.S. is scheduled to slap tariffs on $200 billion in Chinese imports Monday, adding to the more than $50 billion worth that already face U.S. import taxes. China has vowed to counterpunch with tariffs on $60 billion in U.S. goods.

China has canceled trade talks with the United States following Washington’s imposition of new tariffs on Chinese goods.

The Wall Street Journal reports that China had planned to send Vice Premier Liu He to Washington next week for the talks, but has now canceled his trip along with that of a midlevel delegation that was to precede him.

US was optimistic

Earlier Friday, a senior White House official said the U.S. was optimistic about finding a way forward in trade talks with China.

The official told reporters at the White House that China “must come to the table in a meaningful way” for there to be progress on the trade dispute.

The official, speaking on condition of anonymity, said while there was no confirmed meeting between the United States and China, the two countries “remain in touch.”

“The president’s team is all on the same page as to what’s required from China,” according to the official.

Trade imbalance

The Trump administration has argued that tariffs on Chinese goods would force China to trade on more favorable terms with the United States.

It has demanded that China better protect American intellectual property, including ending the practice of cybertheft. The Trump administration has also called on China to allow U.S. companies greater access to Chinese markets and to cut its U.S. trade surplus.

Earlier this week, the United States ordered duties on another $200 billion of Chinese goods to go into effect Sept. 24. China responded by adding $60 billion of U.S. products to its import tariff list.

The United States has imposed tariffs on $50 billion worth of Chinese goods, and China has retaliated on an equal amount of U.S. goods.

Tariffs on all China imports?

Earlier this month, President Trump threatened even more tariffs on Chinese goods — another $267 billion worth of duties that would cover virtually all the goods China imports to the United States.

“That changes the equation,” he told reporters.

China has threatened to retaliate against any potential new tariffs. However, China’s imports from the United States are $200 billion a year less than American imports from China, so it would run out of room to match U.S. sanctions.