FLASH: US and China at impasse over trade, Larry Kudlow says new tariffs will remain.
The United States and China appeared at a deadlock over trade negotiations Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any “bitter fruit” that harmed its interests.
The trade dispute between the world’s Top 2 economies escalated Friday, with the United States hiking tariffs on $200-B worth of Chinese goods after President Trump said Beijing ‘broke the deal’ by reneging on earlier commitments made during 10 months of negotiations.
White House economic adviser Larry Kudlow said Sunday that the United States needs to see China agree to “very strong” enforcement provisions for an eventual deal and said the sticking point was Beijing’s reluctance to put agreed changes into law.
He vowed the tariffs will remain in place while negotiations continue.
Beijing remained defiant, however.
“At no time will China forfeit the country’s respect, and no one should expect China to swallow bitter fruit that harms its core interests,” said a commentary Monday in the Communist Party’s People’s Daily.
Mr. Kudlow said there was a “strong possibility” that President Trump will meet with Chinese President Xi at a G-20 Summit in Japan in late June.
President Trump has ordered Mr. Lighthizer to begin the process of imposing tariffs on all remaining imports from China, a move that would affect about an additional $325-B worth of goods.
Mr. Lighthizer said a final decision on that has not yet been made but it would come on Top of the Friday tariff rate increase to 25% from 10% on $200-B worth of Chinese imports.
The Bitter Fruit
“We are in terrific shape in order to correct 20+ years of unfair trading practices with China … I think this is a risk we should and can take without damaging our economy in any appreciable way,” Mr. Kudlow said.
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