Trump threatens China with tariffs on further $300bn of goods

U.S. President Donald Trump threatened to hit China with "at least" another $300 billion of tariffs but said he thought both China and Mexico wanted to make deals in their trade disputes with the United States.

"Our talks with China, a lot of interesting things are happening. We'll see what happens... I could go up another at least $300 billion and I'll do that at the right time," Trump told reporters on Thursday, without specifying which goods could be impacted.

“But I think China wants to make a deal and I think Mexico wants to make a deal badly,” said Trump before boarding Air Force One at the Irish airport of Shannon on his way to France for D-Day commemorations.

In Beijing, China’s Commerce Ministry struck a defiant tone.

“If the United States wilfully decides to escalate tensions, we’ll fight to the end,” ministry spokesman Gao Feng told a regular news briefing.

“China does not want to fight a trade war, but also is not afraid of one. If the United States wilfully decides to escalate trade tensions, we’ll adopt necessary countermeasures and resolutely safeguard the interests of China and its people.”

Tensions between the world’s two largest economies have risen sharply since talks aimed at ending a festering trade war broke down in early May.

While Trump said on Thursday that talks with China were ongoing, no face-to-face meetings have been held since May 10, the day he sharply increased tariffs on a $200 billion list of Chinese goods to 25%, prompting Beijing to retaliate.