United States companies in China say tariffs are hurting

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Even Mr. Scott said the tariffs have failed to accomplish Mr. Trump's stated goal of forcing better trade deals, notably with China, and reducing the us trade deficit.

Christopher McNally, an adjunct senior fellow at the East-West Centre in Hawaii, said the Trump administration may seek a deal on the trade war before the elections, though he cautioned that the United States president could easily throw out any negotiated settlement if he felt it did not "help him politically or doesn't go far enough, doesn't make him look good enough".

"If we meet, we meet?" he said.

The White House says tariffs are a response to China's unfair trade policies, which Mr Trump blames for helping to create a huge trade deficit.

"Secretary Mnuchin who is the team leader with China has apparently issued an invitation", Kudlow told Fox Business Network.

The official China Daily said that while China was "serious" about resolving the stand-off through talks, it would not be rolled over, despite concerns over a slowing economy and a falling stock market at home.

Every year, the USA imports $500 billion worth of goods from China, while it ships only one-third of that amount to the East Asian country.

It's unclear yet what specific sectors have been affected by the suspension, but it will likely include industries that Beijing has promised to open to foreign businesses, such as banking, securities, insurance and asset management, said Jacob Parker, vice-president for China operations of the USCBC. Our markets are surging, theirs are collapsing.

Roughly three-in-four firms surveyed said duties on an additional $200-billion worth of Chinese goods would hurt business further, and close to 70 per cent said additional retaliatory Chinese tariffs would be bad for business. The business lobby urged Washington to reconsider its approach.

"We share the concerns of the USA regarding China's trade and investment practices, but continuing along the path of tariff escalation is extremely unsafe", the European chamber president, Mats Harborn, said in a statement.

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"I think most of us think it's better to talk than not to talk, and I think the Chinese government is willing to talk", Kudlow said.

But Kudlow was non-committal over the chances of a breakthrough, adding: "I guarantee nothing". A meeting among Cabinet-level officials could ease market worries over the escalating tariff war that threatens to engulf all trade between the world's two largest economies and raise costs for companies and consumers.

Mid-level US and Chinese officials met on August 22 and 23 with no agreements.

U.S. President Donald Trump said last week that in addition to preparing tariffs on the further $200 billion worth of goods, he had tariffs on an additional $267 billion worth of goods ready "on short notice if I want".

China may not be able to match future US tariffs dollar for dollar and has warned that it would take other measures.

That shows "neither side is 'winning, '" because "both are equally prone to losing companies", the chamber said.

The tweet appeared aimed at a Wall Street Journal report about Mr. Mnuchin's invitation.

AmCham's survey results come a day after more than 60 US industry groups launched a coalition called Americans For Free Trade, which aims to halt the White House's proposed tariffs. -China Business Council, said this week Chinese officials told it they were postponing accepting license applications from American companies in financial services and other fields until relations improve.

More than 60 percent of US companies polled said the USA tariffs were already affecting their business operations, while a similar percentage said Chinese duties on USA goods were having an impact on business.

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