Donald Trump says won’t talk to China, raises concerns over trade deal

Collapse of the deal risks leading to a return of the ‘tit-for-tat’ tariff war

President Donald Trump said he called off last weekend’s trade talks with China, raising questions about the future of a trade deal that is now the most stable point in an increasingly tense relationship.“I canceled talks with China,” Trump said Tuesday in Yuma, Arizona. “I don’t want to talk to China right now.” The phase-one trade deal, which came into force in February, had called for discussions on implementation of the agreement every six months.

Chinese Vice Premier Liu He was supposed to hold a video conference call with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, but it was postponed indefinitely.On Wednesday, Chinese Foreign Ministry spokesman Zhao Lijian deferred comment to the “competent department” when asked about Donald Trump’s remarks on the trade talks.Talks between the US and China continue regularly at lower levels, according to Greg Gilligan, chairman of the American Chamber of Commerce in China.

While the purchases by China could be happening more quickly, “there is absolutely commitment and progress that’s occurring” he said Wednesday.“I think both sides recognise that this is really the glue that is holding the relationship together. There’s not an awful lot of other channels of communication that are working well,” Gilligan said. “So that’s a reason for some optimism in an otherwise pretty bleak scenario in the larger relationship.”