BEIJING �� China has scrapped planned trade talks with the U.S. and is unlikely to resume them until after November's midterm elections, according to people familiar with the matter.
The decision to call off a planned meeting next week came as President Donald Trump signaled that he's prepared for short-term pain for the U.S. economy by escalating the trade war, in pursuit of what he sees as the long-term gains from taking on China.
The White House had no immediate response to China's latest move. Yet hours before the Wall Street Journal reported that Beijing had canceled plans to send Vice Premier Liu He and a mid-level delegation to Washington, a senior U.S. official said the president believes that inaction on China will leave the economy and consumers worse off.
In addition to new tariffs on $200 billion worth of Chinese goods set to go into effect Monday, the U.S. State Department sanctions against China's defense agency and its director Thursday contributed to the ultimate decision to cancel the talks, the people said.
In his push for what he calls a level playing field in dealing with China, Trump imposed the new tariffs on imports from China and threatened more if Beijing retaliated. On Aug. 18, China said it would impose tariffs on $60 billion worth of U.S. goods effective Monday.
The Ministry of Commerce and the Ministry of Finance didn't respond to inquiries about the matter Saturday.
U.S. industry has widely resisted the Trump administration's use of tariffs to force changes to China's economy, and companies including Walmart Inc., Gap Inc. and Samsonite International have said they're prepared to raise prices if the new tariffs hurt their businesses.
