What happens if US-China trade talks fall apart

A container ship - viewed through the sights of a museum gun - unloads its cargo in California. If tariffs escalate, the US economy would shrink by 0.6 per cent, according to the International Monetary Fund, while China's economy could contract by 1.
A container ship - viewed through the sights of a museum gun - unloads its cargo in California. If tariffs escalate, the US economy would shrink by 0.6 per cent, according to the International Monetary Fund, while China's economy could contract by 1.5 per cent.PHOTO: AGENCE FRANCE-PRESSE

Trade talks between the United States and China appear to be in serious trouble after China reportedly walked back on some of its commitments and President Donald Trump launched a tirade against Chinese negotiators on social media.

This marks a sharp turn from May 3, when Mr Trump said talks were "going along pretty well". As with most negotiations, the most intractable issues have been left for the final stages.

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A version of this article appeared in the print edition of The Straits Times on May 13, 2019, with the headline 'What happens if US-China trade talks fall apart'. Print Edition | Subscribe