China warns that US tariffs could jeopardize current trade talks

Legislation | | MIC Customs Solutions |

China has warned the US that the progress they have made in their ongoing trade negotiations could be undone if proposed US tariffs are brought into effect.

The US has been warned against imposing any new tariffs on Chinese imports if it wishes to preserve the progress made in recent trade talks.

China and the US have been embroiled in an escalating trade conflict since March, when president Donald Trump announced plans for a widely-criticized series of new tariffs on imports of steel and aluminum. This has led to both countries announcing tit-for-tat levies on each others' goods, sending global markets into turmoil.

Over recent weeks, efforts have been made to defuse these tensions, with representatives from the US and China meeting to discuss an amicable solution to the conflict. As part of these negotiations, China pledged last month to increase its imports from America to reduce its trade surplus in goods with the US, which is a key point of contention for President Trump.

However, the US government has since stated that it will proceed with its proposal to impose 25 per cent tariffs on $50 billion (€42.77 billion) worth of goods from China, while placing new limits on Chinese investments in US tech industries.

This has led to the Chinese government issuing a statement through its official news agency, Xinhua, clarifying that China will not deliver on commitments to buy more American goods if its exports are sanctioned.

The statement said: "Agreements between China and the United States should be based on the premise of both sides moving in the same direction and not waging a trade war. If the US launches trade sanction measures, including the imposition of tariffs, then all the economic and trade benefits negotiated by both sides are not going to take effect."

It added that China remains unwilling to change its policy of national economic reforms due to foreign pressure, and that any plans to increase imports from other countries would be "to satisfy the Chinese people's increasing consumption needs and the country's high-quality economic growth".