People's Daily, the flagship newspaper of China's Communist Party, said in a front-page commentary that the us should take full responsibility for the setbacks because it went back on its word and imposed more levies on Chinese products. The Dow Jones industrial average closed down more than 600 points, and Nasdaq sunk 3.4 percent when the closing bell rang Monday afternoon.
The president has been using tariffs like a cudgel to force China to the negotiating table. The statement warned of retaliatory measures after Washington increased tariffs on about $200 billion worth of Chinese imports, from 10 percent to 25 percent, while also announcing tariff hikes on all remaining U.S. imports from China, valued at around $300 billion. In doing so, American officials accused China of backtracking on commitments it made in earlier negotiations. -China trade talks end without a deal.
The Chinese response was announced soon after Trump warned Beijing not to retaliate.
"So you absolutely can't put the hat on China of reversing positions and going back on one's promises", Geng said, adding China had shown goodwill in the talks and kept its promises.
ANZ Research believes the odds of reaching a "real deal" are "less than half".
Still, the two countries have given themselves something of an escape hatch: The higher Chinese tariffs don't kick in for 2½ weeks.
Shares retreated in Asia on Monday after trade talks between the US and China wrapped up Friday without an agreement.
Wei Jianguo, a former vice-minister at the Ministry of Commerce who handled foreign trade, told the South China Morning Post that China was prepared for a long trade war.
People close to the talks said finding an agreement is likely to prove increasingly hard with hardliners on both sides seeing the latest breakdown as evidence the other side can not be trusted.
White House economic advisor Larry Kudlow told U.S. media Sunday that Trump and Chinese President Xi Jinping could meet next month on the sidelines of the G20 summit to hash out their differences on trade, although no new talks are scheduled. But nothing has been scheduled. "Yes, I don't disagree with that", Kudlow said.
"Markets were prone to a selloff after a good start to the year on expectations of policy easing from central banks and no escalation of trade tensions, and it's this latter pillar that has come away".
The U.S. and China had been making progress toward a final trade deal but the tentative agreement all but fell apart last week after the Chinese sought to make revisions to the deal, the White House said. "Losing a valuable market, losing stable pricing, losing an opportunity to support our families and our communities".
He also warned: "There will be nobody left in China to do business with". The administration a year ago handed farmers aid worth $11 billion to offset losses from trade conflicts. China is targeting over 5,000 products, including food, building materials, electronics, natural resources, transports, and other consumer goods. Also unclear is what would happen to the US tariffs on Chinese imports.
The president's allies in Congress scrambled to limit the damage to farm country.
The next day, Treasury Secretary Steven Mnuchin and the top USA trade negotiator, Robert Lighthizer, said that China had been reneging on commitments it made in earlier rounds of negotiations. "China should not retaliate-will only get worse!" "You can't move these goalposts like they're moving them and expect to be respected".
There are, however, scenarios in which the Chinese might pay indirectly for the tariffs.
World stocks held near two-month lows on Tuesday as slightly more optimistic comments from US and Chinese officials on trade brought some comfort, a day after equities suffered their worst selloff so far this year. While profitable companies might simply absorb that additional cost, they could also pass it on to others.