China warns against blackmail as Donald Trump considers higher tariffs

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One person familiar with the internal deliberations said the U.S.is trying to secure certain concessions and if China agrees, it is possible the USA would back off additional tariffs.

China roared back at the latest US tariff threat Thursday, vowing to retaliate if the USA presses forward with plans to put 25 percent tariffs on additional $200 billion of Chinese imports. Furthermore, the massive, debt-financed tax cut enacted last December will only drive domestic consumption and make US assets more attractive to foreign buyers, all of which will widen the USA trade deficit much more than the limited tariffs imposed so far will shrink it.

The administration's trade moves are aimed at forcing China to end what it calls unfair trade practices, including improperly obtaining American intellectual property.

In 2017, the United States had a $376 billion trade deficit with China, which it is keen to cut. "The president claimed that trade wars are easy to win, but what our industry has always known is coming true: Trade wars are costly, unnecessary and do harm to the American economy".

Mickey Kantor, who was USA trade representative under President Bill Clinton, warned that a trade war with China will take a toll on a us healthy economy that from April through June registered the fastest growth since 2014.

US and Mexican negotiators are meeting in Washington Thursday and Friday to work on a rewrite of the North American Free Trade Agreement - an effort that looked virtually dead a few months ago.

MSCI's gauge of stocks across the globe.MIWD00000PUS shed 0.75 percent and Germany's DAX blue-chip index .GDAXI, seen as a trade war proxy, fell 1.5 percent.

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The 31-year-old Indian , who has taken 316 wickets from 58 Tests so far, had made a decision to work on his bowling action. James Anderson was England's most economical bowler with 41 runs off 22 overs while Curran bagged four wickets.

A U.S. Treasury spokesman didn't respond to a request for comment.

China announced Friday it will put tariffs on $60 billion of US imports if the USA moves forward with 25% tariffs on $200 billion goods. This trend should surprise absolutely no one since slapping tariffs on individual countries will only serve to shift the source of America's imports to countries unaffected by tariffs, while the Chinese government has more than enough tools at its disposal to counteract new tariffs with additional subsidies. Beijing immediately imposed retaliatory levies in the same amount on U.S. imports.

U.S. threats have escalated since, with the President saying he is ready to impose tariffs on all $500bn of Chinese imports.

General Electric (GE.N) estimated the new tariffs on its imports from China could raise its costs by $300 million to $400 million overall, before steps to lessen the impact while General Motors Co (GM.N), Ford Motor Co (F.N) and Fiat Chrysler Automobiles NV (FCHA.MI) (FCAU.N) have lowered their full-year profit forecasts.

US Secretary of State Mike Pompeo (left) shakes hands with Chinese Foreign Minister Wang Yi before their meeting on June 14 at the Great Hall of the People in Beijing.

"Well, let's put it into arithmetic perspective". Now Trump administration officials are reportedly considering increasing those tariffs to 25 percent.

The news comes amid reports of the United States administration's plan to impose 25 percent tariffs on $200 billion in imported Chinese goods, according to US-based media. After Liu visited Washington later that month, the nations released a joint statement pledging to reduce the USA trade deficit with China, among other things. Since then there have been no meaningful contacts between the two sides.

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