White House expects retaliation from China, stresses ongoing talks

White House expects retaliation from China, stresses ongoing talks
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The Trump administration is expecting retaliation from China after imposing a new round of steep tariffs but is stressing that negotiations are ongoing.

The U.S. and China seemed poised to reach a deal on their yearlong trade war last week until President TrumpDonald John TrumpBusiness school deans call for lifting country-specific visa caps Bolton told ex-Trump aide to call White House lawyers about Ukraine pressure campaign: report Federal prosecutors in New York examining Giuliani business dealings with Ukraine: report MORE raised tariffs from 10 percent to 25 percent on $200 billion worth of Chinese imports on Friday after a breakdown of negotiations.

"The problem is two weeks ago in China, there was backtracking by the Chinese," White House economic adviser Larry KudlowLawrence (Larry) Alan KudlowMORE said on "Fox News Sunday."

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Chinese negotiators reportedly tried to reverse their vows to address issues such as theft of trade secrets and intellectual property.

Now that Trump has imposed the long-threatened tariffs bump and is considering extending it to more Chinese goods in the future, members of the administration expect retaliation.

"The expected countermeasures have not yet materialized. We may know more today or even this evening or tomorrow," Kudlow said.

He added that the potential additional tariffs may take months to implement.

"Call it a couple months. Call it three months. I don’t know. ... That will take some time, and then of course the president is going to have to make the final decision on that," he said.

Kudlow added that Trump and Chinese President Xi Jinping are likely to meet in June and that negotiations are ongoing.

"The talks will continue, and I will say this, the G20 meeting in Japan toward the end of June, the chances President Trump and President Xi will get together at that meeting are probably pretty good," he said.

Kudlow, United States Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerOn The Money: Economy adds 164K jobs in July | Trump signs two-year budget deal, but border showdown looms | US, EU strike deal on beef exports Chinese, US negotiators fine-tuning details of trade agreement: report The Trump economy keeps roaring ahead MORE and Treasury Secretary Steven MnuchinSteven Terner MnuchinTrump hypes China trade deal as new doubts emerge Overnight Defense — Presented by Boeing — Trump to slap sanctions on Turkey for Syria offensive | Trump calls on Turkey to broker ceasefire | Pelosi, Graham seek deal on sanctions | Ex-Trump aide testifies in impeachment probe Trump calls on Turkey to broker ceasefire MORE have been in discussions with Chinese negotiators for weeks, meeting in both Beijing and Washington in attempts to iron out a deal.

Chinese state media said Sunday that officials there are open to continuing those discussions but will not yield on issues important to state security, according to Reuters.

Several Democrats have been critical of the Trump's use of tariffs as a negotiation tactic.

"Wielding tariffs like a cudgel because it makes the president look tough? That only hurts American families," Rep. Seth MoultonSeth Moulton2020 Presidential Candidates Rep. Joe Kennedy has history on his side in Senate bid Mass shootings have hit 158 House districts so far this year MORE (D-Mass.), a 2020 presidential candidate, told Fox on Sunday, explaining that farmers are bearing the weight of Chinese tariffs.

"Putting tariffs on our allies, putting tariffs on even the Chinese that are actually taxes on American producers, American farmers … I think [is] completely the wrong way of doing this," Sen. Michael BennetMichael Farrand Bennet2020 primary debate guide: Everything you need to know ahead of the October showdown The Hill's Campaign Report: Impeachment fight to take center stage at Dem debate 2020 Presidential Candidates MORE (D-Colo.), another 2020 hopeful, said on CBS's "Face The Nation."

Trump has maintained in tweets that his new round of tariffs will be paid for by China and will benefit the U.S. 

Kudlow contradicted the president Sunday, agreeing that China does not pay the tariffs.

"It’s not China that pays tariffs. It’s the American importers, the American companies that pay what in effect is a tax increase and oftentimes passes it on to U.S. consumers," Fox News anchor Chris WallaceChristopher (Chris) WallaceBaier, Bream, Hemmer, Hume, Wallace among interim anchors to fill Shep Smith's 3 PM slot Trump hits Fox News's Chris Wallace over Ukraine coverage White House officials stand by Syria withdrawal, sanctions delay amid bipartisan pushback MORE said to Kudlow.