China scotched trade talks with the U.S. that were planned for the coming days, according to people briefed on the matter, further dimming prospects for resolving a trade battle between the world’s two largest economies. The decision to pull out of the talks follows the latest escalation in trade tensions. On Monday, President Trump announced new tariffs on $200 billion in Chinese imports, prompting Beijing to retaliate with levies on $60 billion in U.S. goods. Mr. Trump then vowed to further ratchet up pressure on China by kicking in tariffs on another $257 billion of Chinese products. Chinese officials have said they wouldn’t bend to pressure tactics. By declining to participate in the talks, the people said, Beijing is following up on its pledge to avoid negotiating under threat. “Nothing the U.S. has done has given any impression of sincerity and goodwill,” Chinese Foreign Ministry spokesman Geng Shuang said at a news briefing Friday. “We hope that the U.S. side will take measures to correct its mistakes.” The latest exchange of tariffs, which take effect this coming Monday, brings China and the U.S. closer to a full-blown trade war. Still, Beijing is leaving open the possibility of engaging in fresh negotiations with Washington next month, said the people familiar with the matter. Treasury Secretary Steven Mnuchin sent an invitation to Vice Premier Liu He, President Xi Jinping’s economic czar, two weeks ago asking for a fresh round of talks this month. Previous negotiations had ended without any breakthroughs. Trump officials perceived the offers from Beijing—largely involving more Chinese purchases of U.S. agricultural and other products—as inadequate in addressing the White House’s demand for a fairer playing field for American businesses in China. Originally, Vice Commerce Minister Wang Shouwen, who led China’s negotiating team in the last round, was to again lead a group for the talks in the U.S. and then Vice Premier Liu himself would follow up with a trip to Washington on Sept. 27 and Sept. 28. Both of those trips have now been called off, the people said. “There are no meetings on the books right now,” a senior White House official said Friday. “The President wants us to continue to engage to try to achieve a positive way forward, but it does take China to come to the table in a positive way.” Shipping containers in Shanghai in April. Photo: aly song/Reuters Whether the two countries resume high-level trade negotiations could shape the path of future tariffs threatened by the Trump administration. People familiar with the administration’s plans have said Mr. Trump is expected to issue a formal statement to begin the process of crafting the next tranche of tariffs that, if fully implemented, would cover virtually all U.S. imports of Chinese goods, which totaled $505 billion in 2017. While the threat of more tariffs might intensify the rhetorical pressure on Beijing, these people have said, the actual administrative process—including holding public hearings, receiving written public comments and conducting internal impact studies—would take weeks before any fresh measures would take effect. With the new tariffs imminent and the threat of possibly more coming, Chinese officials in recent days have questioned whether now is the time to negotiate. Many in China’s policy circles believe that Beijing should wait to negotiate until after the U.S.’s November midterm elections. They say Mr. Trump isn’t ready to cut a deal and is bashing China now to appeal to his political base, though he may be more amenable after the elections. Meantime, Beijing is hoping that a possible summit in late November, around the time of the Group of 20 meetings, could provide an opportunity for both sides to reach a settlement. To prepare for the potential top-level meeting, Chinese officials are still looking for ways to restart negotiations, the people said. “The matter might be revisited in October,” one of the people said. So far, Beijing’s strategy has been to respond forcefully to the Trump administration’s trade offensive. But because China imports less from the U.S.—just under $130 billion last year—than vice versa, Beijing is running out of products to penalize. If Beijing moves to retaliate by targeting American businesses operating in China, as some officials have proposed, the country’s leadership runs the risk of souring the foreign-investment environment and causing foreign capital to flee at a time the Chinese economy is slowing. That is why President Xi has also ordered his officials to keep engaging with Washington and U.S. businesses, according to Chinese officials and government advisers. For instance, Mr. Liu in recent weeks has gone out of his way to reassure U.S. companies that there won’t be retribution against them. So far, the trade conflict has had limited impact on the Chinese economy. Many government advisers and economists expect growth to tick down in the coming months as a result of weakening Chinese exports and higher unemployment rates. “The trade war will affect China’s transition toward higher-quality growth,” said Wang Yiming, vice president of the State Council’s Development Research Center. —Vivian Salama contributed to this article. Write to Lingling Wei at lingling.wei@wsj.com<doc-sep>By next week, the United States and China could be poised to impose tariffs on their entire exchange of goods, which surpasses $635 billion annually. An all-out trade war would trigger job losses in both countries, economists say, as well as a spike in the cost of household goods, including bedding, furniture, toys, razors and toaster ovens.<doc-sep>China has scrapped upcoming trade talks with the US and will not send vice-premier Liu He to Washington, DC, next week. Earlier this week, China slapped import tariffs on $60 billion of US products in retaliation for US tariffs on $200 billion of Chinese goods that are set to go into effect on September 24. 85-95% of American exports to China now face tariffs. SHANGHAI (Reuters) - China has canceled upcoming trade talks with the United States and will not send vice-premier Liu He to Washington next week, the Wall Street Journal reported, citing sources. The Wall Street Journal said a mid-level delegation was due to travel to Washington ahead of Liu’s visit, but the trip has now been abandoned. Earlier this week, China added $60 billion of U.S. products to its import tariff list as it retaliated against U.S. duties on $200 billion of Chinese goods set to go into effect from September 24. "In order to safeguard its legitimate rights and interests and the global free trade order, China will have to retaliate as a response," a statement from the ministry said earlier Tuesday, before the specifics of the retaliation were released. The Trump administration initiated the latest round in the US-China trade war overnight. When the new tariffs take effect, over half of all Chinese goods coming into the US will be subject to duties. The US has sought to use tariffs to pressure Beijing to change some of its trade practices. "For months, we have urged China to change these unfair practices and give fair and reciprocal treatment to American companies," President Donald Trump said in a statement. "We have been very clear about the type of changes that need to be made, and we have given China every opportunity to treat us more fairly. But, so far, China has been unwilling to change its practices." The new tariffs from Beijing are in line with what the ministry previously threatened, and they mean 85% to 95% of American exports to China are now facing tariffs.<doc-sep>China is killing my business. Now tariffs are too TOPSHOT - US President Donald Trump (L) and China's President Xi Jinping leave a business leaders event at the Great Hall of the People in Beijing on November 9, 2017. Donald Trump urged Chinese leader Xi Jinping to work "hard" and act fast to help resolve the North Korean nuclear crisis, during their meeting in Beijing on November 9, warning that "time is quickly running out". / AFP PHOTO / Nicolas ASFOURI (Photo credit should read NICOLAS ASFOURI/AFP/Getty Images) How the US trade war might impact your beer US company says it was crippled by Trump's tariffs Canadian Prime Minister Justin Trudeau (L) and U.S. President Donald Trump pose for photographs at the White House October 11, 2017 in Washington, DC. The United States, Canada and Mexico are currently engaged in renegotiating the 25-year-old North American Free Trade Agreement. (Chip Somodevilla/Getty Images) QUEBEC CITY, QC - JUNE 08: Prime Minister of Canada Justin Trudeau (R) speaks with U.S. President Donald Trump during the G7 official welcome at Le Manoir Richelieu on day one of the G7 meeting on June 8, 2018 in Quebec City, Canada. Canada will host the leaders of the UK, Italy, the US, France, Germany and Japan for the two day summit, in the town of La Malbaie. (Photo by Leon Neal/Getty Images) The US and China flags stand behind a microphone awaiting the arrival of US Senator John McCain, who was joined by Senators Lindsey Graham Amy Klobuchar for a press conference at the US Embassy in Beijing on April 9, 2009 during the China stop of the Congressional Delegation's fact-finding Asia-tour. Senator McCain said he urged Chinese officials in talks here to back a strong United Nations response to North Korea's rocket launch, but indicated China had resisted. AFP PHOTO/Frederic J. BROWN (Photo credit should read FREDERIC J. BROWN/AFP/Getty Images) (CNN) — Negotiations between the United States and China have stalled after President Donald Trump ordered new tariffs on Chinese goods. Senior US officials, led by Treasury Secretary Steven Mnuchin, have been working to end the trade standoff through diplomacy. A new round of talks was in the works for the coming weeks, but Trump’s decision to slap tariffs on an additional $200 billion worth of Chinese imports appears to have forestalled the negotiations for now. On Friday, a senior White House official said no new meetings are currently planned. “There is no scheduled US-China negotiation at the moment,” the official said. “That doesn’t mean it wouldn’t happen.” While no meetings between US and Chinese officials had been formally scheduled ahead of the tariff announcement, officials had been laying the groundwork for a new round of talks at the end of September that now appear to be off. “There is no meeting that is on the books,” the senior White House official said. The tariffs Trump announced on Monday marked an escalation in a growing trade war between Washington and Beijing. Trump’s aides are divided on a best strategy. Mnuchin has led diplomatic efforts to convince China to alter its trade practices. Meanwhile, hardliners within the administration have advocated a tougher approach. Despite warnings of political fallout, Trump has sided with the hardliners, at least for now. He remains convinced that a trade battle with China is winnable and is bolstered by polls showing his tariffs are popular among his base of Republican voters. But analysts and even some of Trump’s aides worry the fallout from his trade war will not fade quickly, even if a deal is struck. A number of businesses, including Target, Apple, and Walmart, the country’s largest retailer, warned the administration in a letter that new tariffs on Chinese goods would result in price hikes. And Jack Ma, the billionaire Alibaba chief, said this week the budding trade war has undermined his promise to bring 1 million jobs to the US. “This promise was on the basis of friendly China-US cooperation and reasonable bilateral trade relations, but the current situation has already destroyed that basis,” Ma said. “This promise can’t be completed.” Beijing has vowed to retaliate and is poised to slap $60 billion worth of tariffs on US goods starting next week. Even as he was announcing new tariffs this week, Trump threatened an additional round on $267 billion worth of Chinese imports if Beijing retaliates against US farmers or industrial workers. That would mean essentially all Chinese imports to the US would be subject to tariffs. At the same time, Trump has not ruled out further negotiations with China, including a possible meeting with Chinese President Xi Jinping, perhaps on the sidelines of the G20 summit set for November in Argentina. Some officials have said talks may have a greater chance of success after November’s midterm elections, though deep Republican losses could drive Trump to stake out a harder line on an issue he believes is politically advantageous. Trump has hailed his good relationship with Xi as a reason to believe the trade standoff can be resolved. “They want to make a deal, and let’s see if we can make a deal,” he said on Friday evening during a campaign rally in Missouri. Trump has also questioned whether his tough trade stance has pushed China to be less cooperative in applying sanctions pressure on North Korea. “I hope they’re still helpful,” he said during an East Room press conference this week. “There’s a question about that.” CNN’s Cristina Alesci, Jeremy Diamond, Matt Rivers and Donna Borak contributed to this report.<doc-sep>
China reportedly will not send vice-premier Liu He to Washington next week. (Reuters) Highlights China reportedly cancelled their vice-premier's visit to the US China also added $60 billion US products to its tariff list The US stays optimistic about finding a way forward in its trade dispute The United States is optimistic about finding a way forward in its trade dispute with China, but it does not have a date scheduled for further talks as it assesses Beijing's response to the latest round of tariffs, a senior White House official said on Friday. The official said despite its protestations, China was well aware of U.S. demands it halt what Washington considers unfair trade practices. U.S. President Donald Trump has made clear his resolve on the issue, the official said, and the two sides remain in touch. "We have been very clear in all of these meetings about what is ... required," the official said. "I am still optimistic that there is a positive way forward, and the president wants us to continue to engage to try to achieve a positive way forward." The official's comments came ahead of a report by the Wall Street Journal that China had cancelled mid-level trade talks with the United States, as well as a proposed visit to Washington by vice premier Liu He originally scheduled for next week. Earlier this week, China added $60 billion of U.S. products to its import tariff list as it hit back at U.S. duties on $200 billion of Chinese goods that go into effect from Sept. 24. The escalating trade dispute has spooked financial markets. Speaking to reporters at the White House on condition of anonymity, the official made clear the administration's ultimate goal was not to separate the interlinked U.S. and Chinese economies, but he said companies could choose to alter their supply chains if Beijing did not change course. "Our goal here is not to cleave off the Chinese market from the U.S. market, I don't think that's good for long-term growth," he said. "In the short term there is of course a risk that if China continues on the path it is, that some companies as a result of this may start ... to move supply chains." The official also said he hoped Canada would agree to join a U.S.-Mexico trade deal by the end of the month, while saying he thought U.S. lawmakers would support a bilateral deal with Mexico if that did not happen. U.S. and Canadian officials have been engaged in talks to modernize the North American Free Trade Agreement, a 1994 deal that underpins $1.2 trillion in trade between the United States, Canada and Mexico. The official dismissed concerns separate deals with Canada and Mexico would have a negative impact on supply chains. "I think it's overblown to say that if we have separate deals with these two, that there still can't be a really high degree of integration," he said. © Thomson Reuters 2018