The prospect of a wider trade war between the United States and China sent global financial markets whipsawing on Monday and could force Beijing to make difficult decisions if it hopes to preserve its nascent economic recovery.
President Trump upended what appeared to be steady progress toward reaching a trade pact after he threatened on Sunday to impose still more tariffs on Chinese-made goods unless Beijing moves closer to a deal. Liu He, the Chinese vice premier overseeing economic policy and Beijing’s lead trade negotiator, had been set to travel to Washington for talks scheduled for Wednesday that were widely seen as the potential last round before reaching a trade deal.
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