United States ready for China trade deal when Beijing is 'serious'; Kudlow

Investors hope fresh talks will avert an all-out US-China trade war

President Donald Trump will reportedly announce new tariffs on $200 billion in Chinese goods on Monday or Tuesday.

The consequences of a simmering global trade dispute have been "almost unnoticeable" for USA consumers, Mr Trump claimed, arguing that steep import duties have allowed his administration to forge a "very strong bargaining position".

One of China's most prominent figures in global finance says Beijing should press Washington to end their tariff battle by clamping down on exports of goods needed by American companies, according to news reports Monday.

China has said it will respond to the next round of United States levies with retaliatory tariffs on $60 billion of U.S goods ranging from liquefied natural gas to aircraft.

Indeed, many critics of Chinese economic policy in the USA hope the escalating trade dispute will discourage companies in the US and elsewhere from investing in China.

The two governments have already imposed 25 percent tariffs on $50 billion of each other's goods. Chinese officials have signaled they'll refuse to meet with Mnuchin if this next round of tariffs is imposed, according to two people familiar with the discussions.

He also said he saw no reason why the trade reforms would hurt the U.S. economy.

Beijing may also decline to participate in the proposed trade talks with Washington later this month if the Trump administration goes ahead with the additional tariffs, the Wall Street Journal reported on Sunday, citing Chinese officials.

In a pair of early morning tweets, Trump hailed his combative trade policy as a boon to American economic health and said the USA steel industry, which the White House has championed in new protectionist measures, was now "the talk of the world".

In a tweet Monday, the president said billions of dollars and jobs have been pouring into the U.S.as a result and increased costs have been essentially unnoticeable.

"While Washington extends a carrot to Beijing, it is also swinging a stick".

"There are quite a few names that are sitting on long butterfly positions, so they'll make money if it (the Canadian dollar) moves up or down", said Simon Côté, managing director, risk management solutions, National Bank Financial.

While US inflation has continued to rise steadily albeit modestly, firms across the country report lost businesses, layoffs and possible bankruptcies as input costs rise and exports fall.

Though China had begun discussing plans to attend, but began rethinking whether to attend because of the possibility new tariffs may be announced this week.

A lower tariff rate could soften the blow to U.S. consumers and manufacturers among others ahead of key United States congressional elections in November.

The trade tiff has yet to be felt in US markets as the tariffs, which now are set at 3.8 per cent, may rise to just 10 per cent, which most companies can handle in a growing economy, said Brian Nick, chief investment strategist at said on Monday he would announce his latest plan on China tariffs after the markets close. But some Democrats, who broadly oppose the president's agenda and are banking on his unpopularity, have adopted critical views of trade agreements and free trade.

Some Republicans in export-dependent areas have fallen silent on trade or sought to push back.

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