US President Donald Trump previously confirmed that the country was still open to negotiating with China despite its newly imposed tariffs on Sunday. Trump then made a stern statement on Tuesday, telling China not to intentionally delay the ongoing trade talks.
Trump mentioned that if China would delay the talks, he would become "tougher" on them if it would drag on to his second term. Negotiators from both sides are expected to meet face-to-face in the United States this month, but no exact date has yet been announced.
China has yet to formally address Trump's statements, but it has confirmed that negotiators will be present at the planned face-to-face meeting in the United States this month.
In a post on social media, Trump clarified that China will be facing even tougher terms if both countries do not immediately resolve the now year-long trade dispute.
Trump stated that if he won the re-election in November 2020 and the issue is still not resolved, China will be facing a much tougher trade opponent.
Trump also mentioned that delaying the talks will only serve to damage China's supply chain, which will result in the loss of businesses, money, and jobs.
The chief executive of the US Chamber of Commerce, Thomas Donohue, has agreed with Trump's statement. Donohue explained that while US companies have been negatively affected by the tariffs, China's economy is taking a much worse beating.
In prior interviews, Trump had repeatedly stated that he believes China is intentionally trying to delay the ongoing trade negotiations in the hopes that he will not be reelected in the upcoming US Presidential Elections in 2020.
Trump alleged that China is hoping to have a Democratic candidate win the position as it could lead to better terms for them within the trade agreement.
Trump's statement to China has compounded fears of further market decline as the trade situation between two of the world's largest economies continue to deteriorate.
New data released by the Institute for Supply Management (ISM) has shown that the US manufacturing sector had contracted in August, the first decline in three years. The ISM's U.S. manufacturing Purchasing Managers' Index dropped to 49.1 percent in August.
The decline in the US' manufacturing sector is expected to continue as both countries issue their retaliatory tariff measures against each other. The Trump administration had imposed new tariffs on more than $112 billion worth of Chinese goods on Sunday. At the same time, China also imposed its own set of tariffs on US crude imports.
Following the trading of blows, China formally lodged a complaint against the United States with the World Trade Organization. The complaint is China third lawsuit against the US' tariff actions.
