China warned the Trump administration Sunday that it will throw cold water on trade negotiations if the U.S. slaps heavy new tariffs on the country.
“All economic and trade outcomes of the talks will not take effect if the U.S. side imposes any trade sanctions, including raising tariffs,” the Chinese government said in a statement.
President Trump plans later this month to impose 25 percent tariffs on $50 billion worth of Chinese goods, especially those boosted by a new Chinese project, “Made in China 2025,” which aims to make the country a leader in technologically innovative sectors such as artificial intelligence.
China has threatened to retaliate with tariffs targeting $50 billion in U.S. products.
“Agreements between China and the United States should be based on the premise of both sides moving in the same direction and not waging a trade war,” China’s statement said.
Secretary of Commerce Wilbur Ross and his team negotiated with Chinese officials on Saturday and Sunday but did not announce any new agreements.
“Meetings so far have been friendly and frank, and covered some useful topics about specific export items,” Ross said on Sunday.
The talks with Ross “made positive and concrete progress while relevant details are yet to be confirmed by both sides,” according to a statement from the Chinese government, as reported by state-run news agency Xinhua.
The Trump administration has been focused on trying to sell more agricultural and energy products to China in its efforts to “help support growth and employment in the United States,” a Monday statement from the White House said.
“The delegations will now report back to receive guidance on the path forward,” the White House concluded.
The world’s second-largest economy had previously offered to buy more American goods as part of a good-will effort to reduce the $375 billion trade gap between the two countries.
“China is willing to increase imports from other countries, including the United States, to satisfy the Chinese people’s increasing consumption needs and the country’s high-quality economic growth,” China’s statement said.
However, China said that offer would be scrapped if the new tariffs go into effect.