Donald Trump: China 'Under Pressure' to Make a Deal with United States

Salam Bin Mohammed 24 was first in the queue for the new iPhone 8 at Apple’s Regent Street store in London last September. Analysts will be watching to see if demand is as strong for new models this year

Salam Bin Mohammed 24 was first in the queue for the new iPhone 8 at Apple’s Regent Street store in London last September. Analysts will be watching to see if demand is as strong for new models this year

"The administration is faced with the fact that if they go ahead with the US$200 billion, they will hurt the U.S. economy quite badly, and things are not going so well with the midterms", he said.

The United States and China have so far slapped tariffs of 25% on more than $50 billion worth of each other's exports and more are in the pipeline. "Now the two sides are in communication on relevant details".

About 30 per cent said they were adjusting supply chains by seeking to source components and/or assembly outside the USA, and about the same number were seeking to source components and/or assembly outside China.

"The U.S. administration runs the risk of a downward spiral of attack and counterattack, benefiting no one", Zarit said in statement.

Meanwhile, almost a third of companies said they were considering delaying or canceling investments, underscoring the heightened uncertainty created by the trade tensions.

More than half of firms say they are already feeling Beijing's wrath, with 27% reporting increased inspections, 19% feeling heightened regulatory scrutiny and 23% witnessing slower customs clearance.

The U.S. trade deficit with China was $375.6 billion in 2017, according to data by the Census Bureau.

Trump and his advisers have argued that the tariffs are necessary to pressure Beijing to abandon unfair practices.

The chairman of the American Chamber of Commerce in China warned the Trump administration might be underestimating China's resolve to fight back.

The possibility of new talks comes as China is wary of the "very painful" impact of additional USA tariffs given its economic slowdown, with its gross domestic product at the lower end of its growth range for the past three years.

China's Commerce Ministry said both sides would want to avoid escalation. The move comes just as Bloomberg reports the White House is proposing a new round of trade talks with China, after the previous four attempts faltered. That prompted worries it would use regulatory controls to disrupt US business operations in China.

His first round of tariffs this summer hit US$50 billion in Chinese products like high-end technology parts and manufactured goods, while Beijing fired back dollar-for-dollar at USA soybeans, autos and other farm goods.

Another business group, the U.S.

More than 60 per cent of USA companies polled said the US tariffs were already affecting their business operations, while a similar percentage said tariffs by China on USA goods were having an effect on business. Some 67.6 percent said the same of China's planned retaliatory tariffs on $60 of American goods.

Almost half of respondents - who work in retail, food and manufacturing - say production costs have climbed, and 42 percent said they've noticed a decreased demand for their products.

China has tried without success to recruit Germany, France, South Korea and other governments as allies against Washington.

"We share the concerns of the USA regarding China's trade and investment practices, but continuing along the path of tariff escalation is extremely unsafe", the European chamber president, Mats Harborn, said in a statement.

The U.S. has enjoyed near-record low joblessness and faster economic growth in 2018, while Beijing's economy faces growing long-term concerns, including a sharp decline in the value of its currency.

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