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China spells out conditions for a trade agreement

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Goods already being shipped will not be affected

Since past year the United States and China have exchanged tariffs on more than $360 billion in two-way trade, gutting USA agricultural exports to China and weighing on both countries' manufacturing sectors.

President Trump said he's in no rush to reach a trade deal with China as he raised tariffs on $200 billion of its imports Friday, reanimating a trade war that appeared to be waning and unnerving lawmakers and retailers who say the change in tack will harm American consumers. "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!" The higher tariffs could reduce U.S. Gross Domestic Product (GDP) by 0.3 percent and China's by 0.8 percent in 2020, said Oxford Economics.

"The negotiators ended the first day of talks aimed at saving a trade deal even as Trump said he would proceed with "very heavy tariffs" on Chinese products".

China for the first time made clear what it wants to see from the USA in talks to end their trade war, laying bare the deep differences that still exist between the two sides.

Trump on Twitter erroneously wrote that China would pay the tariffs.

Will the trade war between the U.S. and China have an impact on European consumers? Of course, we hope that the United States exercises restraint. Those cargoes will be charged the original 10% rate.

United States stock futures fell and Asian shares pared gains after Washington went ahead with the tariff hike, reflecting worries that a broader, more protracted trade war would inflict greater damage on the global economy. A major world index looked set for its worst week since December.

"There is no greater threat to world growth", French Finance Minister Bruno Le Maire said.

"We think these differences are significant issues of principle", Liu said.

"Adding to current problems, it took us more than 40 years to develop the China soy market".

The added levy could reduce U.S. gross domestic productby 0.3% and China's by 0.8% in 2020, consultancy Oxford Economics said.

China has yet to respond to the latest tariff hike proposal.

"Pushing rates to 25% will prove extremely damaging to those companies, and the collateral damage will ripple around the globe. European companies are watching aghast as the US and China play Russian roulette with the world economy".

Negotiations broke down earlier this month as the U.S. accused China of reneging on items previously agreed to, but U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin met Thursday negotiations with China's top negotiator, Vice Premier Liu He, and are expected to continue discussing terms on Friday.

Further talks are possible, but there was no immediate plan for the next round, a person familiar with the negotiations said. One person familiar with the discussions said that U.S. officials were unsure whether Mr Liu had the authority to make any meaningful commitments.

George Conway, attorney and husband to Counselor to the President Kellyanne Conway, on Saturday mocked President Donald Trump's suggestion of an "easy" and "very simple" way to avoid tariffs after the White House once again increased tariffs on goods imported from China.

"Those new tariffs would be added leverage for Trump to hold over Xi at a G-20 meeting, making it unlikely that he would deploy them in advance-unless Beijing ups the ante by pursuing aggressive non-tariff punitive measures", they added.

The Yangshan container port in Shanghai. Trump has said he is planning to expand penalties to all Chinese goods shipped to the United States.

Daniel Ikenson, a trade policy expert at the libertarian Cato Institute, which has opposed Trump's tariffs, calculated that an across-the-board 25 per cent levy on Chinese imports may amount to a tax on American consumers of as much as US$135 billion, based on the US$543 billion in goods imported in 2018 as a baseline.

The message from the White House was that backsliding by Beijing over previously agreed liberalising trade reforms meant another $300bn of Chinese imports could soon be added to the list, which would effectively cover all imports to the U.S. from the world's second largest economy.

Furniture, lighting products, auto parts, vacuum cleaners and building materials are also high on the list of products subject to higher duties.

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