Economy

Markets dive after ‘Tariff Man’ threat by Donald Trump

Markets dive after ‘Tariff Man’ threat by Donald Trump

The two sides have a "clear timetable and road map" for talks, the ministry statement said, but gave no details.

Beijing has yet to confirm Mr Trump's claim that China promised to cut auto tariffs and immediately buy more American farm goods.

The Republican president indicated he would not be opposed to extending the 90-day truce he and Chinese President Xi Jinping agreed to over the weekend.

But the mood has quickly soured on scepticism that the two sides will be able to reach a substantive deal on a host of highly divisive issues within the short negotiating period agreed.

But the verbal detente was broken Wednesday as China's foreign ministry lashed out at criticism from US Secretary of State Mike Pompeo.

"I think that if you put the two press releases together, you can see what basically happened", Cui Tiankai told Reuters in Washington on Monday after returning from Buenos Aires, where he had joined Xi's delegation.

Pompeo said in Brussels on Tuesday the U.S. could abandon some worldwide agreements to thwart bad actors like China, which he accused of cynically exploiting World Trade Organization rules.

He had earlier also indicated that the deadline for an agreement could be extended.

America has probably already missed its best chance to sell soybeans to China, according to Cargill, one of the world's biggest agriculture commodity traders.

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Mr Trump heightened nervousness by tweeting that there would be "a REAL DEAL with China, or no deal at all" at the end of their three-month peace window, "at which point we will be charging major tariffs against Chinese product".

What exactly will China buy?

Aram... so President Trump is calling himself a "Tariff Man...." -China trade cease-fire, contributing to a broad stock market plunge and intensifying fears of a global economic slowdown. Chinese shares closed lower on Wednesday amid similar doubts.

During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in United States tariffs on many Chinese goods, from 10 per cent to 25 per cent, that had been set to take effect on January 1.

"Officials now face the hard task of fleshing out a deal that is acceptable to the Chinese but also involves significant enough concessions not to be torpedoed by the China hawks in the Trump administration", Capital Economics said in a note this week, adding that higher tariffs could simply be delayed.

"China is full of confidence in reaching an agreement within the next 90 days", the spokesman said. But U.S. exports of the product have drastically decreased after China slapped retaliatory duties of 25 percent on the product this spring.

While at the conclusion of Saturday's working dinner, both the USA and Chinese delegations said that what amounted to a trade war "truce" between the leaders had been reached, the messaging from the White House that followed seemed to only muddy the waters. It would also begin buying products from U.S. farmers "immediately", the USA said.

Trump added China would roll back tariffs of 40 percent on cars, though Beijing has yet to confirm the move.

The two sides will also discuss intellectual property protection, technology cooperation, market access and balanced trade, and "work hard to reach a consensus", Gao said.