'The US expects China to retaliate over the Trump administration’s latest tariff hike, chief economic adviser Larry Kudlow said on Sunday.
“The expected countermeasures have not yet materialized,” Larry Kudlow told Fox News Sunday. “We may know more today or even this evening or tomorrow.”
As markets digested the comments, futures trading pointed to a drop in Wall Street stocks on Monday while Asian shares slipped in early trade.
Talks ended on Friday and Trump raised the spectre of a full-blown trade war when he ordered that tariffs on Chinese imports worth around $200bn be raised from 10% to 25%.
Beijing retaliated for previous tariff hikes by raising duties on $110bn of US imports. Chinese officials have also targeted US companies by slowing customs clearance and stepping up regulatory scrutiny.
On Saturday he had tweeted saying Beijing had deliberately sought to delay negotiations. “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 [and] have a Democrat win,” he said.
Kudlow told Fox no more talks were planned but also said there was a “strong possibility” Trump and Chinese president Xi Jinping “will meet in Japan at [the] G20” summit at the end of June.
In China, state media said the door to talks was always open but China would not yield on important issues of principle. In a commentary carried by the official Xinhua news agency, the ruling Communist Party’s People’s Daily said there are no winners in any trade war and China did not want to fight but would not be afraid to do so.'
Read more: China expected to retaliate over Trump tariff hike, economic adviser says