US President Donald Trump said on Monday that if there is no progress in trade talks with China's President Xi Jinping at a Group of 20 summits later this month, he will impose punitive tariffs on $300 billion worth of Chinese imports. Since two days of talks between US and China last month in Washington ended not on good terms, Trump has repeatedly stated that he expects to meet President Xi Jinping at the June 28-29 summit in Osaka, Japan. China has not made any such announcement of the meeting. The US has already imposed 25% on $250 billion worth of goods. The US Government has banned Huawei Technologies and as a result, the US Companies are refrained from doing any business with the Chinese firms. Investors of China are worried that Chinese Government in response will prohibit them from doing any business with the US firms.
Fitch ratings mentioned on Monday that the above situation will affect the economies sectors of both countries. In an interview, Trump said the Huawei dispute could be addressed as part of a trade deal with China. Tensions between Washington and Beijing rose sharply in May after the Trump administration accused China of having reneged on promises to make structural economic changes during months of trade talks.