China retraced on substantial commitments it made based on the trade discussions with the United States, triggering the US President to enforce additional tariffs on the Chinese goods condemned to go into effect on Friday, according to the top officials. The rapid collapse in negotiations between the largest two economies hit financial markets globally as investors confronted the prospect of upsurge rather than an end to a 10 month-old trade war.
The US President posted on twitter that he would sanction tariffs on $200 billion worth of Chinese goods to 25 percent imports with tariffs, addressing stocks and oil prices lower on Monday.
The US Trade Representative, Robert
who has been an advocate for structural replacements in China, claimed by Beijing had retracted on commitments it had previously made and it would have massively changed the agreement.
The US Trade Representative, Robert Lighthizer told the reporters, “ over the course of the last week or so we have seen … an erosion in commitments by China”. He also added, “ that in our view is unacceptable.”
Chinese Vice Premier Liu He is expected to be in Washington for further discussions. The US Trade Representative, Robert Lighthizer told, “ we’re not breaking off talks at this point. But for now … come Friday there will be tariffs in place”.
Treasury Secretary Steven Mnuchin pondered to be less hawkish toward China, told China’s retracting became clear with “new details” over the weekend. He refused to provide effective resolutions and also said the US side had initially expected to conclude an agreement one way or the other this week.
Treasury Secretary Steven Mnuchin said, “ they were trying to go back on language that had been previously negotiated, very clear language, that had the potential of changing the deal dramatically”.
He also added, “the entire economic team … are completely unified and recommended to the president to move forward with tariffs if we are not able to conclude a deal by the end of the week. ”
A representative at the Embassy in China in Washington did not immediately respond to the questions about the United States assertions. Chinese Foreign Ministry representative Geng Shuang said on Monday in Beijing, “ we are also in the process of understanding the relevant situation. What I can tell you is that China’s team is preparing to go to the United States for the discussions”.