All trade progress is off if US slaps tariffs: China

Bloomberg

All commitments made so far in talks with the US over trade will be withdrawn if President Donald Trump carries out his threat to impose tariffs, China said.
While both sides reported some progress in discussions this weekend about how to reduce China’s $375 billion goods-trade surplus with the US, Trump’s revival last week of a plan to slap tariffs on $50 billion of Chinese imports has cast the talks into turmoil.
“If the US rolls out trade measures including tariffs, all the agreements reached in the negotiations won’t take effect,” state-run Xinhua News Agency reported on Sunday, citing a statement from the Chinese team that met with a US delegation led by Commerce Secretary Wilbur Ross.
The Xinhua report came after Ross met on Sunday with Chinese Vice Premier Liu He for talks that Ross called “friendly and frank, and covered some useful topics about specific export items.” At the same time as negotiators focus on technical steps to reduce the US deficit, Trump’s swerve has rattled Beijing as it raises the possibility that any agreement made could be simply torn up by the president.
“China is concerned over the US’s unpredictability, especially after Trump turned an about-face on tariffs,” said Gai Xinzhe, an analyst at Bank of China’s finance institute in Beijing. “Trump needs to give out more goodwill in exchange for really productive negotiations. Bluff, threat, and willful moves might work in business bargaining, but they could backfire in talks among nations.”

Gas, Food
The US delegation, which was in Beijing for two days, included energy and agriculture experts, reflecting the US desire to increase exports of natural gas and food.
On the Chinese side, officials including Commerce Minister Zhong Shan, Central Bank Governor Yi Gang, Vice Agricultural Minister Han Jun, and Li Fanrong, vice minister of national energy administration, accompanied Liu in the talks, according to a media pool report.
During his visit, Ross has been looking to build on a vague joint statement released May 19, after negotiations in Washington. China pledged then to take steps to “substantially” reduce the US trade deficit, including by buying more American farm goods and energy, though it didn’t commit to a dollar amount.