China could cancel trade negotiations after the threat of Trump tariffs, the sources say

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US President Donald Trump (R) and Chinese Vice Premier Liu Talk to journalists at the White House Oval Office on April 4, 2019 in Washington, DC.

Chip Somodevilla | Getty Images

China could withdraw from trade negotiations scheduled for this week with US officials after President Donald Trump threatened Beijing to raise tariffs.

Trump said in a Twitter post on Sunday afternoon that the current 10% $ 200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% levies on an additional $ 325 billion of "short-term" Chinese assets.

Chinese vice premier Liu had planned to bring a large delegation to Washington on Wednesday to conclude a trade agreement and in recent days there had been talk of a result similar to an agreement. Instead, two sources informed of the talks have said that the Chinese side could withdraw from the negotiations this week.

This was anchored in Trump's new threats, they said, abandoning a truce six months after Beijing let loose on some previously discussed commitments.

A source said that the Chinese deputy premier will probably cancel the trip he had planned for himself and a delegation of 100 people for the last round of talks that US officials had previously stated could have concluded an agreement by Friday . Chinese officials canceled a trip at the end of September 2018 in similar circumstances.

A second source said that Trump's decision to double more than the $ 200 billion customs duty was intended to send a message to Liu not to come to the United States with more "empty bids".

The White House, the Treasury and the office of the US Commercial Representative did not immediately respond to CNBC's requests for comment.

. (tagToTranslate) Donald Trump (t) Commerce (t) World economy (t) Economy (t) Politics (t) Asia Economy (t) China (t) Asia News (t) economic news

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