Wall Street slides as US-China trade fears rise

Stocks are shown plunging in graphs on monitors at Barclays Capital booth on the floor of the New York Stock Exchange in New York Tuesday Feb. 22 2011

Stocks are shown plunging in graphs on monitors at Barclays Capital booth on the floor of the New York Stock Exchange in New York Tuesday Feb. 22 2011

Dave Salmonsen, a senior director at the American Farm Bureau Federation, said the group is hopeful that the president's threat of increased tariffs on Friday "is just part of the negotiating process".

President Donald Trump announced on 6 May that Washington would be raising tariffs on $200 billion worth of Chinese goods, citing a lack of progress in trade talks between the two states aimed at ending the nearly year-long trade war.

Still, some investors may not want to get on the wrong side of the trade in the event a deal is hammered out as Chinese officials are in Washington this week to continue negotiations. That comes right in the middle of Liu's visit.

"The entire economic team ... are completely unified and recommended to the president to move forward with tariffs if we are not able to conclude a deal by the end of the week".

US President Donald Trump has claimed that China was seeking to U-turn on the trade deal struck between the two countries in the hope that it could renegotiate with a Democratic president following the 2020 election.

"China has just informed us that they (Vice-Premier) are now coming to the United States to make a deal", Trump said. What has happened that does not require interpretation is that the Office of the United States Trade Representative (USTR) already has filed its paperwork to formally raise tariffs to 25% from 10% on roughly $200 billion worth of goods coming from China per year. The developments raise the prospect that talks between the US and China to resolve their trade war could collapse entirely.

Mr Trump caught markets off guard over the weekend, vowing to impose more tariffs on Chinese exports worth hundreds of billions of dollars...

A woman takes photo of a child near a promotion booth with the words "China Made" in Beijing Wednesday. China too slapped reciprocal tariffs on some U.S. exports to the country.

Imports rose 4% to $179.6 billion, rebounding from the previous month's 7.6% decline. Notably, China has agreed to import more American products over the next six years, and introduced a law in 2018 to stop mandatory technology transfers for foreign companies investing in the country.

Some Republican senators voiced concerns about the state of trade negotiations during a private lunch Tuesday with Vice-President Mike Pence, who encouraged senators to stick with Trump as he pushes China for a better deal.

Talks are expected to resume Thursday despite earlier fears Beijing might pull out due to Trump's threat. He said agriculture exports to China fell by more than half past year from $21 billion in 2017. Under normal circumstances and with a "normal" president, the escalation of scandal talk and fights with Congress might convince trade antagonists that the White House would be desperate enough for a deal to force them into a bad one. But that was averted when China announced Liu would return to Washington.

Washington is pressing Beijing to roll back plans for government-led creation of Chinese global competitors in robotics, electric cars and other technologies.