U.S., China break off latest trade talks without a deal, as new tariffs rile markets

The United States and China ended negotiations Friday without a new trade agreement, hours after new tariff hikes took effect and President Donald Trump threatened to slap duties on virtually all Chinese imports – though the two sides also agreed to keep talking. "The relationship between President Xi (Jinping) and myself remains a very strong one, and conversations into the future will continue," Trump said in a pair of tweets hours after the talks broke up. "In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!" Global markets have dropped throughout the week, as investors feared new U.S. tariffs and Chinese retaliatory barriers will raise prices for consumers and slow the global economy. The Dow Jones Industrial Average was down 1% on Friday at midday but pushed higher after Treasury Secretary Steve Mnuchin said talks had been constructive. While Trump claimed that "tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind," market analysts noted that China will retaliate by increasing tariffs on U.S. goods. The results, they said, will be higher prices for consumers, perhaps less trade between the world's two largest economies, and more complicated negotiations on a new trade agreement...MORE