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U.S. NEWS Saturday 11 May 2019

U.S.-China talks break up after U.S. raises tariffs

Continued from Front nese delegation left town.
Lighthizer announced Fri-
Hours earlier, the Trump ad- day evening that he was
ministration hiked tariffs on preparing to impose tariffs
$200 billion worth of Chi- on the $300 billion in Chi-
nese imports to 25% from nese imports that haven’t
10%, escalating tensions already been targeted.
between Beijing and Wash- The government will have
ington. China’s Commerce to get public comment be-
Ministry vowed to impose fore it can target more Chi-
“necessary countermea- nese goods.
sures” but gave no details. On Wall Street, stocks fell
The tariff increase went initially Friday but turned
ahead even after Ameri- positive on optimism over
can and Chinese negotia- future talks.
tors briefly met in Washing- Earlier, Trump asserted in
ton on Thursday and again a tweet that his tariffs “will
on Friday, seeking to end a bring in FAR MORE wealth
dispute that has disrupted to our Country than even
billions of dollars in trade a phenomenal deal of the
and shaken global finan- traditional kind. Also, much
cial markets. After a short easier & quicker to do.”
session on Friday, the lead In fact, tariffs are taxes paid Treasury Secretary Steve Mnuchin, second from left, and United States Trade Representative Robert
Chinese negotiator, Vice by U.S. importers and often Lighthizer, right, speak with Chinese Vice Premier Liu He, left, as he departs the Office of the United
Premier Liu He, left the Of- passed along to consumers States Trade Representative in Washington, Friday, May 10, 2019.
fice of the U.S. Trade Rep- and companies that rely Associated Press
resentative about midday. on imported components. United States. on our exports and our ex- ficials who want to attract
U.S. Trade Representa- American officials accuse Beijing retaliated for pre- panding customer base in American investment have
tive Robert Lighthizer and Beijing of backtracking on vious tariff hikes by rais- China.” tried to reassure compa-
Treasury Secretary Steven commitments made in ear- ing duties on $110 billion Chinese officials have tar- nies there is “minimal re-
Mnuchin shook hands with lier rounds of negotiations. of American imports. But geted operations of Ameri- taliation,” he said. “We’ve
Liu as he left. “China deeply regrets that regulators are running out can companies in China by actually seen an increased
In the afternoon, a motor- it will have to take neces- of U.S. goods for penalties slowing customs clearance sensitivity to U.S. compa-
cade of sport-utility vehicles sary countermeasures,” a due to the lopsided trade for them and stepping up nies at the local level,” he
and a police escort, both Commerce Ministry state- balance. regulatory scrutiny that can added.
with lights flashing, carried ment said. Ford spokeswoman Rachel hamper operations. The higher U.S. import tax-
the Chinese delegation U.S. business groups ap- McCleery said the carmak- The latest U.S. increase es don’t apply to Chinese
away from their lodgings at pealed for a settlement er is most concerned about might hit American con- goods shipped before Fri-
the Willard InterContinental that will resolve chronic any retaliatory tariffs China sumers harder, said Jake day. Shipments take about
Hotel . complaints about Chinese might impose. Parker, vice president of three weeks to cross the Pa-
Hu Xijin, editor-in-chief of market barriers, subsidies The Dearborn, Michigan- the U.S.-China Business cific Ocean by sea, giving
the Chinese newspaper to state companies and a based company says 80% Council, an industry group. negotiators more time to
Global Times, citing “an au- regulatory system they say of the vehicles it assembles He said the earlier 10% in- reach a settlement before
thoritative source,” tweet- is rigged against foreign in the U.S. are sold domes- crease was absorbed by importers may have to pay
ed that “talks didn’t break companies. tically, but it does export companies and offset by a the increased charges.Liu,
down. Both sides think that The latest increase extends some vehicles to China. weakening of the Chinese speaking to Chinese state
the talks are constructive 25% duties to a total of $250 “While most of the vehicles currency’s exchange rate. TV upon his arrival Thurs-
and will continue consulta- billion of Chinese imports, we sell in China are built A 25% hike “needs to be day in Washington, said he
tions. The two sides agree including $50 billion worth in China, Ford does export passed on to the consum- “came with sincerity.” He
to meet again in Beijing in that were already being a number of vehicles to er,” Parker said. “It is just appealed to Washington
the future.” taxed at 25%. Trump has China from the U.S.,” Mc- too big to dilute with those to avoid more tariff hikes,
Still, the Trump administra- said he is planning to ex- Cleery said. “Our biggest other factors.” saying they are “not a so-
tion escalated the confron- pand penalties to all Chi- concerns are impacts re- Despite the public acri- lution” and would harm the
tation again after the Chi- nese goods shipped to the taliatory tariffs would have mony, local Chinese of- world.q