(Reuters) The U.S. goods trade deficit with China, a focus of the White House’s “America First” agenda, shrank to its smallest in five years in March, which could embolden President Donald Trump as he escalates his trade war on Beijing.
The report from the Commerce Department on Thursday came as the United States and China began two days of make-or-break talks to salvage a faltering trade deal.
Trump said on Thursday he would start paperwork to launch tariffs on a new $325 billion category of Chinese imports previously untouched by the trade feud. This is in addition to an expected increase of duties on $200 billion worth of Chinese goods to 25 percent from 10 percent on Friday. China has promised to retaliate if the tariffs are imposed.
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