Tariffs are greater threat to China than US: Congressman Sean Duffy

Chinese Vice Premier Liu He meets U.S. Trade Representative Lighthizer for further trade talks in Washington

Chinese Vice Premier Liu He meets U.S. Trade Representative Lighthizer for further trade talks in Washington

Trade talks between the U.S. and China have broken up with no agreement, hours after President Donald Trump more than doubled tariffs on $US200 billion ($A286 billion) in Chinese imports.

As a tool of national policy, tariffs had always been fading into history, a relic of the 19th and early 20th centuries that most experts came to see as harmful to all nations involved.

In a series of tweets, Trump described the talks as candid and constructive, but indicated taking a tough approach against massive imbalance of trade with China. "NO MORE!" Trump tweeted Friday.

The grocery industry spoke out against the tariffs, with David French, SVP of government relations for the Washington, D.C. -based National Retail Federation (NRF), stating that "tariffs are taxes paid by American businesses and consumers, not by China".

US President Donald Trump yesterday reiterated his statement that China reneged on its promises because it thought it would be able to negotiate the deal with a Democratic president following the 2020 election.

Referring to his latest direction, Trump said that the process has begun to place additional Tariffs at 25% on the remaining 325 Billion Dollars.

Autry was cheerleading for Trump on the BBC's Today programme last week after the president increased the tariff from 10% to 25% on Chinese goods worth $200bn on Friday, including transport equipment, chemicals and an array of foods.

The president argued that Americans could become more reliant on the country's farmers.

Lighthizer said that this was not a final determination to move ahead with the tariffs. The tariff increase took effect after negotiators for the two sides resumed talks in Washington. "Countries do not pay tariffs".

"If the United States increases tariff rates, we will have to respond to this, too". Proceeds go to the Treasury.

"China clearly requires that the trade procurement figures should be realistic; the text must be balanced and expressed in terms that are acceptable to the Chinese people and do not undermine the sovereignty and dignity of the country", the People's Daily newspaper said in a commentary on Saturday. "Instead, it had tariffs, emphasizing taxation of foreign, not domestic production". From 1790 to 1860, tariffs produced 90 percent of federal revenue, according to Douglas Irwin, an economist at Dartmouth College. After Xi took office, Beijing announced an initiative called Made in China 2025 created to make Chinese companies world leaders in advanced fields like robotics and artificial intelligence. They discourage imports by making them costlier. Tariffs are "much easier and quicker to do" and bring the USA more money than a deal, he has been claiming. Economists at Moody's Analytics this week warned that an all-out trade war between the US and China would lead to a recession around the time of the 2020 election.

When asked about domestic concerns over how the latest tariffs could further pressure the economy, Liu said he was optimistic about China's economy in the longer term, adding that it had entered an up-cycle after bottoming out somewhat a year ago. Some of them are theft in intellectual property, forced transfer of technology and the rollback of tariffs.

Rising costs especially hurt consumers and companies that rely on imported parts.

The president's views on tariffs have been heavily criticized.

Some analysts say the dispute could force China to make reforms that will eventually strengthen its economy. With lesser competition from overseas, domestic companies lose the incentive to increase efficiency or to focus on what they do best.