US futures and European and Asian equities fell on Friday after the Chinese government threatened to suspend trade talks with the US. Chinese state media accused the US of playing “petty tricks” and lacking a sincere desire to resolve the trade war. “If there is no real concrete action by the United States, it will be meaningless for you to come and talk,” the ruling party wrote in its official newspaper.
US futures are following European and Asian equities lower on Friday after the Chinese government threatened to cut off trade talks with the US, accusing the nation of using “petty tricks” and lacking a sincere desire to end the trade war.
“If there is no real concrete action by the United States, it will be meaningless for you to come and talk,” the Chinese Community Party said in a commentary published by Taoran Notes, a social media account tied to Economic Daily, a state-run newspaper. The comments referred to US Treasury Secretary Steven Mnuchin’s intention to travel to Beijing to continue talks. “It is better to suspend the consultation completely and return to the normal working track.”
Markets remain uncertain whether the latest combative rhetoric from the two countries “actually spells the death of any trade deal,” said Han Tan, market analyst at FXTM.
Investors are trying to “ascertain whether both sides are playing hardball as an intended signal, a show of brinkmanship, or just plain noise.”
The trade war has escalated in the past two weeks, after US President Donald Trump accused the Chinese of sabotaging a prospective deal and hiked tariffs on $200 billion worth of Chinese imports to 25%, spurring China to retaliate with higher duties on $60 billion of US products.
Making matters worse: The White House also imposed sanctions on Chinese telecoms