China threatens retaliation over Trump's new tariffs

The Chinese government on Wednesday threatened to retaliate if President Donald Trump follows through on his plan to ratchet up tariffs on Friday, just as the two countries try to finalize a trade deal. China's chief trade negotiator, Vice Premier Liu He, is due in Washington later this week for a critical round of discussions with Robert Lighthizer, Trump's top trade envoy and Treasury Secretary Steven Mnuchin. "The escalation of trade friction is not in the interests of the people of the two countries and the people of the world," the Chinese Commerce Ministry said Wednesday. Trump over the weekend upended months of cheery reports by the US that progress was being reached in intense trade negotiations between the world's two largest economies. He also floated launching a third tranche of penalties on remaining Chinese products, sparking a market sell-off earlier this week.