President Donald Trump warned China on Saturday that it should strike a trade deal with the United States now, otherwise an agreement would be "far worse for them if it has to be negotiated in my second term."

Washington and Beijing are locked in a trade battle that has seen mounting tariffs, sparking fears the dispute will damage the global economy.

Two days of talks ended Friday with no deal. China's top negotiator said the two sides would meet again in Beijing at an unspecified date, but warned that China would make no concessions on "important principles."

"I think that China felt they were being beaten so badly in the recent negotiation that they may as well wait around for the next election, 2020, to see if they could get lucky & have a Democrat win — in which case they would continue to rip-off the USA for $500 Billion a year," Trump said in a tweet Saturday.

"The only problem is that they know I am going to win (best economy & employment numbers in U.S. history, & much more), and the deal will become far worse for them if it has to be negotiated in my second term. Would be wise for them to act now, but love collecting BIG TARIFFS!"

Trump had accused Beijing of reneging on its commitments in trade talks and ordered new punitive duties, which took effect Friday, on $200 billion worth of Chinese imports, raising them to 25 percent from 10 percent.

He then cranked up the heat further, ordering a tariff hike on almost all remaining imports — $300 billion worth, according to US Trade Representative Robert Lighthizer — from the world's second-biggest economy.

Those tariffs would not take effect for months, after a period of public comment.

Trump also said Saturday that firms could easily avoid additional costs by producing goods in the United States.

"Such an easy way to avoid Tariffs? Make or produce your goods and products in the good old USA. It's very simple!" he tweeted, echoing a similar message he sent Friday — and even retweeted.

Only a week earlier, the United States and China had seemed poised to complete a sweeping agreement.

Washington wants Beijing to tighten its intellectual property protections, cut its subsidies to state-owned firms and reduce the yawning trade deficit; China wants an end to tariffs as part of a "balanced" deal.

While supporters laud Trump as a tough negotiator, free-trade-minded Republicans have warned that the tariffs could do real damage to the economy, and many farmers — including Trump supporters — say the tariffs have hit their bottom line.

As the trade war spread, China imposed $110 billion in duties on farm exports and other US goods.

Republican Senator Chuck Grassley, from the farm state of Iowa, cautiously welcomed the new tariffs but urged negotiators to reach a quick solution "so we can avoid prolonged tariffs, which we know have an impact on the US economy."

Trump, Xi could meet next month on trade: White House aide
Washington (AFP) May 12, 2019 –

US President Donald Trump and China's Xi Jinping could meet next month on the sidelines of the G20 summit to hash out their differences on trade, but no new talks are scheduled, White House economic advisor Larry Kudlow said Sunday.

The world's top two economies ended two days of negotiations in Washington on Friday with no deal. While making it clear that the US was unwilling to settle, Kudlow sought to tamp down concerns, insisting the process was ongoing.

"We need to see something much clearer and until we do, we have to keep our tariffs on," Kudlow said in an interview on "Fox News Sunday," adding: "We can't accept any backtracking."

As for future negotiations, while there are "no concrete, definite plans yet," Kudlow said China had invited Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer to Beijing — and higher-level discussions could be on the cards.

The chances of Trump and Xi meeting during the Group of 20 summit in Japan in late June "are probably pretty good," the top White House aide said.

The G20 summit is scheduled to take place in Osaka on June 28-29.

Trump had accused Beijing of reneging on its commitments in trade talks and ordered new punitive duties, which took effect Friday, on $200 billion worth of Chinese imports, raising them to 25 percent from 10 percent.

He then ordered a tariff hike on almost all remaining imports — $300 billion worth, according to Lighthizer — from China.

– No timetable yet –

But Kudlow insisted it would be months before such punitive measures, following a period of public comment, and that there was still time to negotiate, though he refused to "put a timetable" on how long Trump was willing to wait.

"We have to change the trading relationship between two countries for the benefit of the United States and its workforce and its ranchers and farmers and so forth. We have to do this," Kudlow said. "The relationship has been too unbalanced."

In his own comments on Saturday, Trump struck a more belligerent tone, urging China that it would be "wise for them to act now."

"They know I am going to win… and the deal will become far worse for them if it has to be negotiated in my second term," Trump tweeted.

While supporters laud Trump as a tough negotiator, free-trade-minded Republicans have warned that the tariffs could do real damage to the economy, and many farmers — including Trump supporters — say the tariffs have hit their bottom line.

Kudlow said he believed any damage to the US economy would be far less than predicted, and that it was a risk "we should and can take."