US and China will not likely reach a trade deal this year, says former ambassador

The latest escalation in tensions between the U.S. and China has reduced the chances that both sides could reach a trade deal this year, a former American diplomat said on Monday. Negotiations between Washington and Beijing appeared to be progressing well until U.S. President Donald Trump shocked markets in May by hiking tariffs from 10% to 25% on $200 billion of Chinese goods. Talks subsequently broke down and had resumed last week before Trump again threatened to slap 10% tariffs on $300 billion of Chinese goods starting Sept. 1. Trump’s latest actions are “a step away from a solution,” said Frank Lavin, U.S. ambassador to Singapore from 2001 to 2005. He added that it’s “unlikely” both sides would reach a deal by the end of this year.