Trade talks between the US and China hit a wall on Friday, when negotiations ended with no deal in sight and no plans to return to the table.
Treasury Secretary Steven Mnuchin held a meeting with the top Chinese trade negotiator on Friday morning but could not hammer out an agreement as a 25 percent import tax on $200 billion in Chinese goods went into effect.
“They were constructive discussions between both parties, that’s all we’re going to say. Thank you,” Mnuchin told CNBC after meeting with Chinese Vice Premier Liu He.
Liu told Chinese state TV that he appealed to Washington to avoid more tariff hikes, saying they are “not a solution” and would harm the world.
“We should not hurt innocent people,” Liu told CCTV.
American officials have claimed that Beijing backtracked on commitments made in earlier rounds of negotiations, leaving them no option but to levy the tariffs.
China’s Commerce Ministry vowed to impose “necessary countermeasures” but gave no details.
There were no firm plans on when the dialogue would continue, but President Trump struck an optimistic note about the progress.
“The relationship between President Xi and myself remains a very strong one, and conversations into the future will continue,” he tweeted.
Trump also noted that the massive tariffs he levied on China “may or may not be removed depending on what happens with respect to future negotiations!”
Trump sent the markets into a tailspin earlier on Friday when he tweeted, deleted, then retweeted about there being “absolutely no need to rush” trade talks with China.
The Dow Jones Industrial Average plummeted 358 points early on Friday but rebounded sharply later in the day — ending in a 114-point gain.
The market uncertainty and high-level trade talks were taking place as American businesses braced for the impact of the Trump tariffs — which would impact products such as electronics, food and clothing.
“We’re very disappointed. We don’t think this is an appropriate methodology,” sad Kris Kiser, the president of a Virginia-based power equipment company.
“This tariff designed to protect the US manufacturers actually penalize a US manufacturer in favor of a competitor.”
Steve White, the president of Electronic Specialties Inc. in Wisconsin, said he was concerned about the cost that would be passed on to the consumer.
“Probably the main thing is customer relations — trying not to upset them too much when we have to increase our prices,” White said.
Ford spokeswoman Rachel McCleery said the auto company is most concerned about any retaliatory tariffs China might impose.
“While most of the vehicles we sell in China are built in China, Ford does export a number of vehicles to China from the US,” McCleery said. “Our biggest concern are impacts retaliatory tariffs would have on our exports and our expanding customer base in China.”
The 25 percent import taxes were raised from 10 percent, and apply to Chinese goods that were shipped starting on Friday.
Shipments take about three weeks to cross the Pacific Ocean by ship, giving negotiators more time to reach a settlement before importers may have to pay the increased charges.
With Wires