Trump's comments came as sources in Beijing and Washington who are familiar with the talks said that the two countries have made progress, but are still wrangling over whether existing U.S. tariffs will be removed and over specific levels of Chinese purchases of U.S. agricultural products as part of a "phase one" trade deal.
"The market was too complacent, thinking both superpowers would be able to compartmentalize these issues away from the broader trade narrative", Stephen Innes chief Asia market strategist at AxiTrader, said in a note.
With a flurry of trade threats across three continents in the span of 24 hours, President Donald Trump reminded financial markets that he's comfortable heading into an election year using tariffs as his main source of global economic leverage.More news: 1 dead, Hwy. 401 westbound closed near Kingston, Ont., after major pileup
Another Chinese government official who declined to be identified said it may take a very long time for Washington and Beijing to reach a deal if they can not find a way to strike a deal while "the iron is hot".
In less than two days, investor optimism that Trump's dovish trade advisers were winning the internal debates started to fade as the president's more hawkish instincts re-emerged.
U.S. Commerce Secretary Wilbur Ross, speaking to Reuters on Tuesday, rejected any deadlines for a deal and launched a fresh attack on Chinese telecom equipment giant Huawei, accusing it of telling suppliers to move operations overseas to skirt U.S. sanctions. Trump's comments Tuesday suggest a deal could be further off than he has recently claimed.
U.S. Commerce Secretary Wilbur Ross said that if no substantial progress was made soon, another round of duties on Chinese imports including cell phones, laptops and toys would take effect on December 15.More news: NYT Defends Bloomberg News After They Get Banned From Trump Campaign Events
A person familiar with the Chinese government's stance on the trade negotiations told Reuters the phase one trade deal could be in jeopardy if the House bill on Uighurs becomes law.
People familiar with the talks said Kushner, who helped bring the U.S. -Mexico-Canada trade agreement (USMCA) to fruition, has increased his direct involvement in the negotiations with China over the past two weeks.
A Chinese official who declined to be identified warned that USA implementation of the new round of tariffs scheduled on December 15 will be countered by China with retaliatory tariffs - an outcome the official said would seriously disrupt ongoing negotiations. The White House has yet to say whether Trump would sign or veto the bill, which contains a provision allowing the president to waive sanctions if he determines that to be in the national interest.
On Monday, the Chinese regime said they would suspend U.S. Navy visits to the port of Hong Kong. Trump's top trade negotiator, Robert E. Lighthizer, said the levies came in response to a French digital services tax that the USA determined is discriminating against American Internet companies. "I watch jobs. Jobs are what I watch; I watch making the proper deal", he said. "We'll see what happens".More news: Cardi B Responds to Offset Cheating Rumors Amid Instagram Hack
"The Chinese side must have such a requirement, because the Chinese side has promised more USA agricultural purchases".