China says US interferes with China’s internal affairs

Chinese embassy in Washington with the statement: 

  • US imposition of visa restrictions on Chinese officials “seriously violates the basic norms governing international relations, interferes in China’s internal affairs and undermines China’s interests”

In relation to this:

This is going well really, all things considered

Chinese embassy in Washington with the statement: 

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China’s top diplomat says Beijing willing to buy more U.S. products

By Michelle Nichols

NEW YORK (Reuters) – China’s top diplomat said on Thursday that China was willing to buy more U.S. products and said trade talks would yield results if both sides “take more enthusiastic measures” to show goodwill and reduce “pessimistic language” in the trade dispute.

Wang Yi, China’s state councillor and foreign minister, said in response to questions from Reuters that the Trump administration had shown goodwill by waiving tariffs on many Chinese products.

“And so, (on) the Chinese side, we are willing to buy more products that are needed by the Chinese market,” Wang said on the sidelines of the United Nations General Assembly. “We hope both sides can take more enthusiastic measures, reduce pessimistic language and actions. If everyone does this, talks will not only resume, but will proceed and yield results.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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China’s Yuan Fix Is Unmissable These Days for Currency Traders

(Bloomberg) — China’s central bank is under pressure to issue its weakest currency fixing in more than a decade, a move that risks spurring more losses in the yuan.

The People’s Bank of China set its daily currency reference rate only marginally stronger than 7 a dollar on Wednesday. That leaves it little headroom if it wants to track the spot rate, which fell 0.3% to 7.0463. While the yuan breached the key 7 level this week for the first time since May 2008, the fixing hasn’t.

At stake is the risk that markets will see Thursday’s reference rate as a signal on policy, as a string of fixings on the weaker side of 7 could exacerbate concerns around further yuan depreciation and capital flight. The central bank has already taken some steps this week to limit declines after the yuan sank the most in four years, including reassuring foreign companies that the currency won’t weaken significantly.

“Policy makers’ priority now is to limit the risks of capital outflows,” said Xing Zhaopeng, a markets economist at ANZ Bank China Co. He expects the PBOC will keep the rate stronger than 7 to maintain stability.

The fixing is published every trading day at 9:15 a.m., after a group of 14 lenders submit their rates. The yuan is then allowed to move 2% in either direction. The rates are calculated with formulas that take into account factors such as the previous day’s official close at 4:30 p.m, the yuan’s move against a basket of currencies and the moves in other major exchange rates.

The mechanism has been used to manage volatility after China removed the yuan’s peg to the greenback in 2005. Until at least 2015, traders weren’t able to offer prices that diverged from the fix by more than the allowed range. The last time the yuan tested the band was in February 2015, when it closed 1.99% weaker than the reference rate. The trading system was upgraded after the shock devaluation in August that year.

The yuan’s slump this week means the currency is once again taking the spotlight in China’s trade dispute with the U.S., stoking criticism Beijing is depreciating its currency to soften the impact of U.S. tariffs. Donald Trump’s administration labeled China a currency manipulator, a formal designation which may prompt counteractive measures. The PBOC rejected the accusation.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Forex – China’s Yuan Steadies, Investor Sentiment Remains Fragile

© Reuters.  © Reuters.

Investing.com – China’s yuan steadied on Tuesday after overnight declines, but market sentiment remained fragile a day after a steep selloff in global markets spurred by fears over the escalating U.S. – China trade war.

China’s extended the previous day’s declines and briefly weakened to 7.1382, the lowest since international trading in the Chinese currency began in 2010. But it pulled back to 7.0690 after Beijing’s firmer-than-expected yuan fixing on Tuesday.

The onshore fell to an 11-year low early on Tuesday, brushing 7.0699 per dollar.

In a symbolic move, Beijing let the yuan breach 7-per-dollar on Monday for the first time since late 2008 following U.S. President Donald Trump’s decision to impose 10% tariffs on $ 300 billion of Chinese imports, ending a month-long trade truce.

Analysts saw China’s decision as a signal that it will not back down and that a trade war which is already affecting global growth will only worsen from here.

But the Chinese central bank’s mid-point fixing on Tuesday of 6.9683 was firmer than market expectations, and the yuan’s retreat slowed.

U.S. Treasury Secretary Steven Mnuchin said in a statement on Monday the government had determined that China is manipulating its currency and that Washington would engage with the International Monetary Fund to eliminate unfair competition from Beijing.

“Trump has already hit China with so many tariffs, we’re not certain what else can he do now that he’s declared China a currency manipulator,” said Takuya Kanda, general manager of research at Gaitame.Com Research Institute in Tokyo.

“The trade war has entered a new phase and we are very unsure what comes next. This type of uncertainty will keep the yuan weak and the dollar weak versus the yen.”

The Japanese , a perceived safe-haven in times of market turmoil and political tensions, touched a seven-month high of 105.53 per dollar before dropping back to 106.37 in volatile trade.

The , another currency sought in times of turmoil, has gained roughly 1% against the dollar this week. It set a six-week peak of 0.970 franc per dollar, before pulling back to 0.9741.

The was little changed against the dollar at 1.1206.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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China’s Politburo: Economic operations remained within a reasonable range in 1H 2019

Comments by China’s Politburo after their work meeting earlier today

China
  • Economy faces increasing downwards pressure
  • Will take measures to expand domestic demand
  • To stabilise investment in the manufacturing sector
  • Reaffirms efforts to stabilise employment, investment and foreign trade
  • To make fiscal policy more effective
  • Says won’t resort to using property/real estate as short-term stimulus measure
  • To boost consumption with more reform-linked measures

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They hardly will go into the details of what measures they will be taking on this early after the meeting but this just reaffirms that Chinese authorities are still looking to step up efforts to bolster the economy amid the global slowdown.

Domestic demand has been a key source of concern, not just domestically but internationally, so let’s see what measures that China has in mind to improve the current situation.

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China’s factory inflation slows as production eases but food prices surge

© Reuters. FILE PHOTO: A fruit and vegetable stall owner uses a calculator to work out prices for a customer at a small market in central Beijing © Reuters. FILE PHOTO: A fruit and vegetable stall owner uses a calculator to work out prices for a customer at a small market in central Beijing

BEIJING (Reuters) – China’s factory gate inflation slowed amid sluggish commodity demand and faltering manufacturing activity, slowing from a four-month high in the previous month and fuelling worries growth in the world’s second-largest economy is slipping.

Consumer prices, however, soared at their fastest pace in over a year, driven by elevated prices of pork and fruit due to supply issues stemming from the outbreak of African swine fever and poor weather conditions.

China’s producer price index (PPI) in May rose 0.6% year-on-year, the National Bureau of Statistics (NBS) said in a statement on Wednesday, in line with analyst expectations and compared with a 0.9% uptick in April.

Producer inflation gauges in China, closely tracked by analysts and investors, are seen as bellwethers of industrial demand in the economy.

As the trade war between Washington and Beijing intensifies, investors and analysts are increasingly concerned the dispute could trigger a global recession.

China’s May exports unexpectedly returned to modest growth in May but imports fell at the sharpest rate in nearly three years, adding to uncertainties.

The slowdown in producer price inflation was in line with downbeat factory activity seen in May.

Price gains in oil and extraction, coal processing and ferrous metals eased last month.

Despite Beijing’s effort to step up big-ticket infrastructure projects, sluggish demand has dragged growth in the prices of construction materials.

Steel consumption has waned as construction slackened amid high temperatures and rainfall. Steel rebar logged its worst weekly performance since late December in the last week of May, while other steel-making raw materials dipped alongside.

China’s imports, a widely-used building material and a key gauge of economic demand, sank 10.9% in May from the previous month, reversing the gain seen in April.

The consumer price index (CPI) in May rose 2.7 % from a year earlier, in line with expectations but the fastest rise since February 2018, driven by elevated pork prices as hog supplies continued their decline after the African swine fever outbreak across the country.

The food price index in May jumped 7.7% year-on-year, the fastest pace since January 2010 and higher than April’s reading of 6.1%.

Fresh fruit prices soared 26.7% in May from a year earlier, after bad weather hit major producing regions, while the escalating China-U.S. trade war made it difficult for fruit traders to find alternatives to fill the shortage.

On a month-on-month basis, the CPI remain unchanged from a month earlier, compared with a 0.1% gain in April.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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For China’s Yuan, the Path Toward 7 Per Dollar Is Now Wide Open

© Bloomberg. Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong, China, on Monday, April 15, 2019. Photographer: Paul Yeung/Bloomberg © Bloomberg. Chinese one-hundred yuan banknotes are arranged for a photograph in Hong Kong, China, on Monday, April 15, 2019. Photographer: Paul Yeung/Bloomberg

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China’s yuan may be entering the final leg of its journey toward 7 per dollar.

The offshore currency weakened to the lowest level since November on Friday, moving closer to a record low it last hit in early 2017. The breached the 6.93 level on Monday for the first time this year as markets reopened after a long weekend. The mainland rate hasn’t touched 7 since the financial crisis.

Bearish technical signals and dovish comments from the People’s Bank of China are adding pressure to the currency, only weeks after yuan watchers speculated the central bank was helping limit depreciation. Analysts are now increasingly convinced that officials won’t stand against the currency breaking 7, a thesis made stronger by PBOC Governor Yi Gang’s comment that no specific level for the yuan is important.

China’s currency became a barometer of stress for traders around the world in May, when tensions between the U.S. and China unexpectedly escalated. This month’s possible meeting between Presidents Donald Trump and Xi Jinping at the Group of 20 summit in Osaka could be the catalyst for the currency to break — or escape — 7 per dollar.

“The chances of the yuan breaking 7 are increasing,” said Tommy Ong, managing director for treasury and markets at DBS Hong Kong Ltd. “Policy makers are more comfortable with letting the level go now, as there’s no intense bearish speculation in the offshore market and trade tensions are intensifying.”

Yi also said there’s “tremendous” room to adjust monetary policy if the trade war deepens. Data Monday showing China’s imports tumbled 8.5% in May — more than double the predicted pace — revealed weakness in the economy. While China unveiled a plan last week to spur demand for automobiles and electronics, some analysts were disappointed by the policies, which don’t include any new spending from the central government.

Goldman Sachs Group Inc (NYSE:). expects the yuan to breach 7 within the next three months, as its decline could be a natural offset to higher U.S. tariffs, strategists including New York-based Zach Pandl wrote in a note.

DBS’s Ong said the yuan could fall past that level “as soon as the end of June, if the U.S. doesn’t appear to be willing to carry on trade talks with China at G-20.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Mnuchin Downplays Talk With China’s Yi, No Breakthrough Seen

© Reuters.  Mnuchin Downplays Talk With China's Yi, No Breakthrough Seen © Reuters. Mnuchin Downplays Talk With China’s Yi, No Breakthrough Seen

(Bloomberg) — Treasury Secretary Steven Mnuchin said the U.S. remains open to continued negotiations with China on trade — just don’t expect any break through this weekend.

Mnuchin is scheduled to meet with China’s top central banker, Yi Gang, on the sidelines of the Group of 20 finance ministers’ summit in Japan this weekend, giving him a chance to break an impasse after talks broke down last month.

He pointed out that “this is not a negotiating meeting,” even as he signaled a willingness to get talks rolling again.

“If they want to come back to the table and have a real agreement we will negotiate. If not, we’ll go forward with our plan” to impose more tariffs, Mnuchin said during a briefing Saturday in Fukuoka, Japan.

Asked about China’s currency, he attributed its recent decline to market forces and the absence of intervention. “When you have intervention in a market for a long period of time and then they don’t intervene, the market could view that as a desire to have the currency weaken,” he said.

The Treasury Department issued its semi-annual foreign-exchange report to Congress last week, in which no country was named as a manipulator. China remains on its watch-list.

Trade Impasse

U.S. and Chinese talks broke down last month, which Mnuchin has said happened because Beijing reneged on provisions of a tentative deal. President Donald Trump raised tariffs on about $ 200 billion in Chinese imports to 25% in response, and at the time hung out the possibility of further action.

China has blamed the U.S. for the breakdown and vowed to reciprocate for the increased tariffs in various ways. The country has hinted at cutting off the U.S. supply of rare earth elements and is also hitting America’s education and tourist sector by announcing visa restrictions.

“I don’t think it’s a breakdown in trust,” Mnuchin said, referring to U.S.-China talks reaching stalemate last month.

Trump has said he’ll decide whether to enact tariffs on another $ 325 billion in Chinese imports after the G-20 leaders’ summit in Osaka at the end of the month, where he’s expected to meet with Chinese President Xi Jinping. The “main progress” will be at that meeting, Mnuchin said Saturday.

China’s central bank governor, Yi Gang, said in a Bloomberg interview his meeting with Mnuchin will be a “productive talk, as always,” though the topic of the trade war would be “uncertain and difficult.”

Winners and losers

While the trade war has unnerved investors, U.S. economic growth has continued. The unemployment rate is the lowest since 1969 and so far inflation data shows that consumers haven’t felt pressure from rising prices.

”People talk about the economic risk of trade wars” however “they should be even more focused on the benefits of having a great trade agreement,” Mnuchin said, noting that there’s no evidence of the U.S. economy taking a hit from tariffs.

“If anything I would say as a result of tariffs on China there are a lot of companies that are moving that production to other countries that I think will be a big boom for those economies, there will be winners and losers, there are clearly countries that will be big beneficiaries on movement” of production, he said.

Not everyone is as sanguine about the economic impact of the trade tensions.

In separate comments this week, Fed Chair Jerome Powell and his No. 2, Richard Clarida, reassured nervous investors they’re watching closely for signs that disputes between the U.S. and its trading partners are denting the outlook for the world’s largest economy. Their remarks moved the Fed slightly closer to its first rate cut since 2008.

Mnuchin heads into his meeting with Yi after a week of globe-trotting with Trump. On Monday he attended a banquet at Buckingham Palace in London, escorted in by Kate Middleton, the Duchess of Cambridge. Later in the week he visited France to pay tribute to veterans who stormed the beaches of Normandy 75 years ago during World War II.

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A $19 Billion Test Is Coming Straight for China’s Battered Yuan

© Bloomberg. An employee counts Chinese one-hundred yuan banknotes for a photograph at the Korea Exchange Bank headquarters in Seoul, South Korea. Photographer:SeongJoon Cho/Bloomberg © Bloomberg. An employee counts Chinese one-hundred yuan banknotes for a photograph at the Korea Exchange Bank headquarters in Seoul, South Korea. Photographer:SeongJoon Cho/Bloomberg

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China’s yuan, already battered by the U.S. trade dispute, will soon have a catalyst for further depreciation.

Offshore-listed Chinese companies will sell the yuan to buy foreign currencies and fund their $ 18.8 billion dividend bill due from June to August, according to Bloomberg calculations. While that’s less than last year’s $ 19.6 billion, the payments come at a sensitive time: the yuan is near its weakest this year and speculation is mounting it will fall to 7 per dollar, regarded as a key psychological level.

The has already dropped about 2.9% in May, making it one of the world’s worst-performing currencies. The spat with the U.S. has put the yuan under pressure because it is likely to hurt China’s economic growth and narrow its trade surplus, while there’s also the possibility the central bank will weaken the currency to offset the blow from tariffs. The U.S. increased levies on Chinese imports on May 10 and has threatened more.

Wall Street Turns More Bearish on Yuan as Trade War Worsens

“The yuan will face seasonal depreciation pressures,” said Tommy Ong, managing director for treasury and markets at DBS Hong Kong Ltd. “But a more important driver for the exchange rate is the trade talks. The currency may weaken towards 7 amid the negotiations, but won’t break that level as that would agitate the U.S.”

The peak for dividend payouts will come in July, when Chinese companies hand out $ 9.9 billion to shareholders. Pressure on the yuan could build before then as firms buy foreign-exchange to prepare themselves, though they might not need to if they already hold dollar reserves offshore.

Hong Kong-listed banks are among the biggest payers. China Construction Bank Corp. will hand out $ 4.2 billion in July, and Bank of China Ltd. will pay $ 2.1 billion, according to Bloomberg calculations based on exchange filings.

Beijing has moved to support the : the People’s Bank of China set its daily reference rate stronger than analysts and traders projected Monday. The offshore yuan was up 0.11% at 6.9417 per dollar as of 5:06 p.m. in Hong Kong, after touching as low as 6.9514 earlier in the day. The onshore rate strengthened 0.08%.

Foreign inflows to onshore stocks and bonds due to index inclusion could help partly offset the pressure that dividend payouts place on the yuan, said Alan Yip, a senior foreign-exchange strategist at Bank of East Asia Ltd. But the currency may still slide to as weak as 6.98 per dollar because of the trade war, he said.

Foreign investors’ holdings of onshore stocks and bonds stood at 3.5 trillion yuan ($ 506 billion) at the end of March, a 37% surge from a year earlier, according to official data. That figure is set to grow as MSCI Inc. adds more A shares to its gauges and after yuan bonds started to get included in a major global index in April.

(Updates the yuan’s moves.)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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China’s tough rhetoric leaves trade talks with U.S. in limbo

© Reuters. A container is carried onto a truck in a logistics center near Tianjin Port © Reuters. A container is carried onto a truck in a logistics center near Tianjin Port

By Ben Blanchard and David Shepardson

WASHINGTON/BEIJING (Reuters) – China struck a more aggressive tone in its trade war with the United States on Friday, suggesting a resumption of talks between the world’s two largest economies would be meaningless unless Washington changed course.

The tough talk capped a week that saw Beijing unveil fresh retaliatory tariffs, U.S. officials accuse China of backtracking on promises made during months of talks and the Trump administration level a potentially crippling blow against one of China’s biggest and most successful companies.

Chinese foreign ministry spokesman Lu Kang, asked about state media reports suggesting there would be no more trade negotiations, said China always encouraged resolving disputes with the United States through dialogue and consultations. 

“But because of certain things the U.S. side has done during the previous China-U.S. trade consultations, we believe if there is meaning for these talks, there must be a show of sincerity,” he told a daily news briefing.

CNBC, citing sources, said the trade talks had stalled and the next round of discussions was “in flux.”

The United States raised Beijing’s ire this week when it announced it was putting Huawei Technologies Co Ltd, the world’s biggest telecoms equipment maker, on a blacklist that could make it extremely hard to do business with U.S. companies.

China has yet to say whether or how it will retaliate, although its state media is sounding an increasingly strident note. The ruling Communist Party’s People’s Daily published on Friday a front-page commentary that evoked the patriotic spirit of the country’s past wars.

“The trade war can’t bring China down. It will only harden us to grow stronger,” it said.

Global stocks, which rebounded this week on the prospect of another round of U.S.-China talks, suffered a fresh bout of selling and China’s yuan slid to its weakest against the U.S. dollar in almost five months. Prices of U.S. government debt were trading higher.[MKTS/GLOB]

The increasingly acrimonious trade dispute has rattled investors who fear that the countries are careening dangerously down a track that will badly damage global supply lines and put the brakes on an already slowing world economy.

The South China Morning Post, citing an unidentified source, reported that a senior member of China’s Communist Party said the trade war could reduce China’s 2019 economic growth by 1 percentage point in the worst-case scenario.

“Both sides might need some prodding, but we’ve had a very clear opportunity for one side or the other … to say this isn’t going to work … and neither side did,” said Derek Scissors, an expert on Sino-U.S. economic relations at the American Enterprise Institute think tank, who put the chance of a deal this year at over 50/50.

(Graphic: Trickle down tariffs – https://tmsnrt.rs/2WIu31i)

AUTO TARIFFS

U.S. President Donald Trump, who has embraced protectionism as part of an “America First” agenda aimed at rebalancing global trade, has accused China of backing out of a deal earlier this month that would have ended the 10-month dispute.

Earlier this month, Reuters reported China had backtracked on commitments to change its laws to resolve core U.S. complaints about theft of intellectual property, forced technology transfers and other practices.

Trump punctuated two days of talks in Washington last week with a decision to raise tariffs on $ 200 billion in Chinese imports to 25 percent from 10 percent. The negotiations ended in a stalemate.

On Monday, Beijing said it would raise its tariffs on a revised list of $ 60 billion in U.S. goods effective June 1. Trump, in turn, said he is considering slapping tariffs on the remaining $ 300 billion in Chinese imports to the United States.

The U.S. president also continues to dangle the possibility of imposing tariffs of up to 25% on imported cars and parts, a move that could be devastating for a number of U.S. trading partners, including Japan and Germany.

The White House said on Friday that Trump’s decision on auto tariffs would be delayed by up to six months to allow more time for trade talks with the European Union and Japan. Trump faced a Saturday deadline to make a decision.

It added, however, that the U.S. president agreed with findings by the U.S. Commerce Department that imported vehicles and parts can threaten U.S. national security, a designation likely to anger some U.S. allies.

Automakers have strongly opposed the tariffs, saying they would hike prices and threaten thousands of U.S. jobs. There is also strong opposition in the U.S. Congress, with many prominent members of Trump’s Republican Party rejecting the idea.

U.S. Senate Minority Leader Chuck Schumer, a Democrat, praised the administration’s decision to delay the auto tariffs.

“Positive step. The pressure must be strong on China, not on our allies who we should encourage to join us in confronting China,” Schumer tweeted.

The United States and Canada also announced on Friday a deal to remove tariffs on Canadian steel and aluminum in exchange for new curbs to keep dumped metals from China and other nations out of the U.S. market. The Mexican president’s office later said Mexico had reached a similar deal with the United States.

The metals tariffs were an aggravation for the Canadian and Mexican governments and had been a major hurdle to enacting the U.S.-Mexico-Canada Agreement, the deal that would replace the 25-year-old North American Free Trade Agreement.

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