Trump threatens China with higher tariffs to reach trade deal

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There was no immediate reaction from China about Trump's announcement.

In the announcement on Twitter, Trump said that talks to secure a trade deal with China are continuing, but are moving "too slowly".

The Trump administration has met with Chinese officials over the last few months in hopes of striking a new trade deal. The White House has ramped up pressure to reach a deal, warning it could still walk away from the months-long negotiations. White House officials were unaware on Sunday afternoon if Trump's tweet would affect those talks.

Trump imposed duties of 25 percent on an initial $50 billion of Chinese goods past year and then 10 percent on an additional $200 billion in products in September.

Trump, however, warned that although talks were continuing, they were progressing too slowly as Beijing tries to renegotiate.

Stock futures tumbled sharply on Sunday, indicating a lower open on Wall Street after President Donald Trump announced higher tariffs on Chinese goods, escalating the ongoing trade fight between the world's two largest economies and undermining expectations for a comprehensive agreement.

He said, "The 10% will go up to 25% on Friday".

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Donald Trump has dramatically increased pressure on China.

The president, a self-described "tariff man" who believes the trade imbalance can be whittled down with the use of import duties, explicitly linked US growth to the imposition of Chinese tariffs.

The United States first imposed tariffs on $50 billion worth of Chinese goods as a punitive measure.

In February, Trump delayed a tariff hike planned for March 1, citing "productive" talks between the United States and China. While the Apple iPhone and other Apple devices have managed to evade the tariff charges, Trump is now talking about taxing hundreds of billions of dollars of additional Chinese products imported into the states, possibly including the iPhone.

"The manner in which tariffs would come off is going to be a part of the enforcement mechanism and all of that is the subject of negotiations as we talk", Pence told CNBC.

But Michael Pillsbury, an informal trade adviser to Trump and the director for Chinese strategy at the Hudson Institute, said Kudlow's remarks downplayed the president's intent. "I was disappointed that Larry Kudlow downgraded it to a mere warning, which may tend to undermine American credibility as the Chinese delegation prepares its position" ahead of this week's scheduled talks, he said.

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