China trade talks end with no breakthrough as tariffs kick in

China says must

U.S., China trade war heats up with new 25 percent tariff hikes on $16 billion of goods from each side

"We concluded two days of discussions with counterparts from China and exchanged views on how to achieve fairness, balance, and reciprocity in the economic relationship", White House spokeswoman Lindsay Walters said in a brief emailed statement.

Yet Beijing is not backing down despite insistence from Washington that it put the breaks on a technology development strategy that, according to the USA, features unfair trade practices.

The possibility of new duties on another $200bn in Chinese goods, which are the subject of public hearings this week, are still pending, as well as Mr Trump's proposed 25% taxes on all auto imports to protect the USA industry.

The most painful perhaps is the tariff on United States soybeans, which chokes off a key export market for American farmers, who shipped US$14 billion of the beans to China past year.

Mr Trump, who has threatened to target all $500bn in goods the USA imports from China, has made that same point, noting that Beijing can not continue to retaliate in kind since it imports less than $200bn a year in United States goods.

China immediately retaliated, imposing duties on U.S. exports worth $16 billion and threatening legal action as tensions continue to rise.

And as China has vowed to retaliate further, Trump has threatened to target all $500 billion in goods the United States imports.

Trump has been unapologetic, insisting that his tough tactics will work, even as American businesses and the Federal Reserve warn of the harm already felt in the economy.

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There is concern that if the tariff exchange continues, China will sooner or later include USA crude oil imports in the list of products to be sold more expensively in the world's second-largest economy.

Earlier, Trump indicated that he was ready to impose duties on over $500 billion of Chinese goods exported annually to Washington unless China agrees to sweeping changes in its intellectual property practices, industrial subsidy programmes and tariff structure.

U.S. Treasury's David Malpass, undersecretary for worldwide affairs, is leading two days of talks, which began Wednesday, with China's Vice Commerce Minister Wang Shouwen and Chinese Vice Finance Minister Liao Min.

WASHINGTON-Trade talks between the USA and China failed to produce any visible sign of progress, reducing the prospects of a deal soon, people closely tracking the talks said. Previous negotiations failed to produce any lasting deals, and President Donald Trump has suggested the current talks may not be much different.

Though it is too early for trade damage to show up in much economic data, tariffs are beginning to increase costs for consumers and businesses on both sides of the Pacific, forcing companies to adjust supply chains and pricing, with some USA companies looking to decrease reliance on China. Beijing had responded in kind.

"It will take time because China's done too well for too long, and they've become spoilt".

"I think the fact that they would send lower level folks suggests that they're not talking about the big things", former Commerce Secretary Carlos Gutierrez said Thursday on CNBC. China's retaliatory tariffs apply to U.S. goods including coal, petrol, vehicles, motorcycles and medical equipment.

"By further reducing the supply of these products in the United States, the proposed tariffs threaten higher prices for U.S. consumers and a higher level of contaminants in American drinking water, food chain, waste water, and chemicals", said CEO Stefan Brodie at a hearing last month.

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