WASHINGTON -- U.S. and Chinese officials wrapped up high-level trade talks on Friday, lacking a deal yet avoiding a breakdown in negotiations even after President Donald Trump boosted tariffs on $200 billion in goods from China and threatened to impose more.
The U.S. gave its bottom line in talks in Washington, saying Beijing had three to four weeks more to reach an agreement before the Trump administration enacts additional tariffs on $325 billion of Chinese imports not currently covered by punitive duties, according to two people familiar with the talks.
Treasury Secretary Steven Mnuchin described Friday’s discussions as constructive as he left the U.S. Trade Representative’s office. Chinese Vice Premier Liu He, the top negotiator who led the talks in Washington, told reporters at his hotel that the talks went “fairly well.”
Yet several people familiar with the discussions said little progress was made during a working dinner on Thursday and in Friday morning talks. Liu didn’t come prepared to offer much more in the way of concessions, one of the people said.
Liu and his delegation were expected to leave Washington on Friday afternoon, according to a person familiar with their planning.
U.S. stocks fell for a fifth day on Friday, though they climbed from lows of the day after indications from American officials that the two sides will keep talking.
Trump said on Friday that the trade talks between the United States and China would continue into the future and U.S. tariffs may or may not be removed, depending on the outcome of the negotiations.
Trump's message, sent in a tweet, sent a signal to financial markets that, despite a significant setback between the two sides in the last week, talks in Washington on Thursday and Friday had not led to a complete breakdown.
"Over the course of the past two days, the United States and China have held candid and constructive conversations on the status of the trade relationship between both countries," he said in the tweet, praising his relationship with Chinese President Xi Jinping and saying talks would carry on.
"In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!" he said
No rush
Earlier Friday, Trump said there’s “no need to rush” a deal.
“Talks with China continue in a very congenial manner -- there is absolutely no need to rush,” the U.S. president said on Twitter, before talks resumed. “In the meantime we will continue to negotiate with China in the hopes that they do not again try to redo deal!”
Amid the latest talks, the U.S. moved ahead with plans on Friday to increase the punitive tariff to 25 percent from 10 percent on 5,700 different product categories from China -- ranging from cooked vegetables to various auto parts.
China said it will be forced to retaliate, though the government didn’t immediately specify how.
The fresh wave of U.S. tariffs marked a sharp reversal from just last week, when U.S. officials expressed optimism that a pact was within reach. The escalation with China also signaled Trump’s willingness to risk more economic and political damage on his apparent belief that trade wars ultimately are winnable.
