After calling off tariffs on Mexico, President Trump has now threatened to impose tariffs on an additional $300 billion of Chinese imports to the United States, should Chinese President Xi Jinping not meet with him at the G-20 Summit later this month.
On May 10, Trump hiked tariffs on $200bn of Chinese goods up to 25 percent and took steps to levy duties on an additional $300bn in Chinese imports.
"Although it is a close call, we still expect the [Federal Open Market Committee] to keep the funds rate unchanged in the remainder of the year", Goldman Sachs economist Jan Hatzius said in a research note. "He's very strong, very smart, but he's for China and I'm for the United States", he said.
"We do not want a trade war, but we are not afraid of fighting one", Geng said, reiterating earlier statements.
According to the spokesman, Chinese officials remain open to engaging the United States in trade talks, if they are based on equality.
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"But now we have to wait a little bit longer to achieve that", he said, without referring directly to President Donald Trump or the trade war.
Trump has repeatedly claimed that tariffs are a key tool of negotiations, pointing to his most recent trade scuffle with Mexico.
If Trump decides to put tariffs on Mexican imports, he said the US would benefit.
"Because, right now, is getting absolutely decimated by companies that are leaving China, going to other countries, including our own because they don't want to pay the tariffs". "It was all done because of the tariffs and because of the relationship we have with Mexico", the president told reporters at the White House. "Because now they respect us, they didn't even respect us", Trump said.
Huawei, the world's top network equipment provider and second-largest smartphone maker, has become embroiled in the trade dispute between China and the U.S. USA officials have accused Chinese technology companies, including Huawei, of stealing trade secrets and threatening global cybersecurity.
"If we didn't have tariffs, we wouldn't have made a deal with Mexico", Mr. Trump told CNBC. They're not going to help improve exports to China. "We have the big, big advantage", he said. So now we have restrictions on that too, which we put in under my administration, very recently because they were buying all of our companies.
G-20 finance ministers meeting in Fukuoka, Japan, over the weekend said trade and geopolitical conflicts are risking global economic growth, but at the US insistence, dropped a call to "recognize the pressing need to resolve trade tensions".