Given his past vows to stop the flow of U.S.jobs to China and crack down on what he says are unfair trade practices, Trump's tweet of concern about Chinese jobs was something of a backflip. Instead, Trump will likely continue upping the ante - betting on China preferring to come to an agreement rather than risk a trade war. In retaliation, Beijing is threatening tariffs on $50 billion in USA products.
When a USA delegation led by Treasury Secretary Steve Mnuchin met with officials in Beijing last week, no deal was reached largely because China refused a demand to cut the trade deficit by $200 billion within the next two years.
"Tariffs are hidden, regressive taxes that will be paid by U.S. businesses and consumers, paradoxically harming U.S. competitiveness", the U.S. Chamber of Commerce, the largest business group in the country, said in its written comments submitted on Friday. The actions may be linked, and may bear on agricultural trade as well, although Commerce Secretary Wilbur Ross on May 14, 2018 insisted that the sanctions against ZTE had "nothing to do with trade". "The more we can work things out, the better it's going to be not just for USA and China, but for the entire world economy", he said.
US President, Donald Trump, on Tuesday said trade negotiations are still underway with China and to "stay tuned".
At the Beijing talks, the Trump administration handed China a list of hard-line demands that trade experts said could make it even more hard to resolve the trade disputes.
Today begins three days of trade hearings in which United States corporations will make their case against President Trump's proposed $50 billion in tariffs on Chinese imports.
Despite now ceasing main business operations, China's second biggest telecom equipment maker is still trying to have the ban modified or reversed. Earlier this month China responded in turn, threatening to impose a similar amount in levies on over 100 United States imports including soybeans, and automobiles.
Ross went on to praise President Trump for fulfilling his campaign promises and making trade more fair with China.
The move was announced in a tweet by Trump on Sunday and comes amid pressure from China's government to back off the sanctions on ZTE, a major Chinese government-linked telecommunications giant. "But be cool, it will all work out!"
In 2012 the US House Intelligence Committee had warned that both Huawei and ZTE posed a national security threat and recommended they were banned from the US.