On May 10th, 2019, at a meeting with Chinese Vice Premier Liu He, U.S. officials laid out their bottom line, telling him that Beijing had three or four weeks to agree to a bargain or face extra 25% tariffs on a further $325 billion in exports to the U.S., according to individuals knowledgeable about the discussions.
The threat came in reaction to the lack of any meaningful concessions by China during two weeks of meetings."There is absolutely no need to rush" the U.S. president stated. In a different tweet, Trump proposed a huge new strategy to make use of the income from tariffs to purchase up the crops of American farmers who've watched their exports into China collapse and ship them to poor countries as aid.
The absence of progress left major questions hanging across the search for a deal on trade. Only one source of tensions in a developing economic rivalry that is already changing supply chains and testing based economic and safety alliances.
The breakdown was another blow for American farmers, who just a couple of weeks ago thought a trade deal was imminent. They begin another growing season with uncertainty about who will purchase their crops.
In a succession of tweets that cheered markets, Trump declared Friday that the talks with China were "candid and constructive." "The association between President Xi and myself stays a very strong one, and conversations into the long run will continue," he said. Further discussions are possible, but there is no immediate plan for another round, according to a person familiar with the negotiations.
The discussions are under close scrutiny across international financial markets, and U.S. stocks turned positive after negotiators on either side said the session had gone pretty well.President Donald Trump's administration told China it has a month to seal a trade deal or face tariffs on all of its exports to the U.S., even as both sides sought to avoid a public breakdown in negotiations despite a growing stalemate.
In an announcement late Friday, U.S. Trade Representative Robert Lighthizer said the administration would release details of its plans for tariffs on approximately $300 billion in imports from China on May 13, 2019, setting the process in motion for Trump to a strong message to China.