Trump’s announcement on Twitter marked a major shift in his tone. He has previously said that the US-China trade negotiations are progressing well and said that he has a good relationship with Chinese President Xi Jinping. If there are any signs of escalation in the Sino-US trade war in the past few months, it will almost certainly disrupt the financial market, because the market is very sensitive to the development of Sino-US trade negotiations.
US and Chinese officials are scheduled to hold a new round of trade talks in Washington this week, and Trump announced the above before the negotiations. White House officials are still unclear on Sunday afternoon whether Trump’s tweets affect this round of trade negotiations. The Chinese delegation may choose not to come to Washington because it may consider Trump’s move to escalate the trade war.
In February, Trump decided not to raise the tariff of 200 billion US dollars of Chinese exports to the United States from 10% to 25%, due to progress in trade negotiations. But his tweet on Sunday overturned the decision, saying that the tariffs on these Chinese goods will increase to 25% on Friday.
Trump also said that he "will soon" impose a 25% tariff on another $325 billion in Chinese exports to the US, and hinted that these measures would not cause American consumers to bear higher prices.
"The tariffs paid to the United States will hardly affect production costs, mainly by China. Negotiations on trade agreements with China are still going on, but the progress is too slow, because the Chinese side is trying to renegotiate. This is not possible!" Trump said.
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