By Bloomberg News

China called looming U.S. tariffs a violation of accords reached by Presidents Donald Trump and Xi Jinping, vowing retaliation as Beijing also pushed back on Trump’s effort to link the trade war with the turmoil in Hong Kong.

The plans for 10% tariffs on an additional $300 billion in Chinese imports have taken the U.S. and China off the track of resolving their dispute through negotiation, the State Council Tariff Committee, which has overseen tit-for-tat retaliation, said in a short statement on Thursday. China “has no choice but to take necessary measures to retaliate,” it said, without specifying what the nation would do.

Separately, a foreign affairs ministry spokeswoman expressed hope that the U.S. would leave Hong Kong as an internal matter for the Chinese government to deal with. Trump said Thursday that an agreement with China has to be on “our terms,” according to Fox Business.

U.S. stocks were trading modestly higher Thursday as investors digested the latest trade news as well as a raft of U.S. economic data and company earnings.

Trump announced the tariffs set for Sept. 1 and Dec. 15. China has halted purchases of agricultural goods and allowed the yuan to weaken. Still, top negotiators held a phone call earlier this week and the U.S. delayed the imposition of some of the new import taxes.

Related:Trump snub irks U.S. wheat farmers as trade-war discontent grows

Negotiators also agreed to have another call in the coming two weeks and people familiar said earlier the Chinese delegation is sticking to their plan to travel to the U.S. in September for face-to-face meetings.

China’s statement indicates that Beijing doesn’t think the U.S. delaying some of the tariffs is enough, said Zhou Xiaoming, a former Ministry of Commerce official and diplomat. China is sticking to the position that no new duties should be imposed at all, he said, adding that China’s retaliation “may not be limited to tariffs.”

Hu Xijin, the editor-in-chief of the Communist Party’s Global Times newspaper, echoed that sentiment. He tweeted before the Thursday announcement that China wants both sides to respect the consensus reached when Trump and Xi met in Osaka in June. “I doubt the Chinese side will resume large-scale purchase of U.S. farm goods under the current circumstances,” he said.

Hu Xijin 胡锡进

@HuXijin_GT

As far as I know, the Chinese side requests that both sides respect the consensus reached at Osaka summit, which is removing all additional tariffs, not delaying some. I doubt Chinese side will resume large-scale purchase of US farm products under current circumstances.

Related:U.S. farmers stung by tariffs now face a $3.5 billion corn loss

Sent via Twitter Web App.

View original tweet.

Less than 12 hours before the Chinese statement on retaliation, Trump appeared to float the possibility of another meeting with Xi. In a flurry of tweets, he defended his tariff decisions, praised Xi and urged the Chinese president to “humanely” resolve the protests that have gripped Hong Kong for more than two months.

Of course China wants to make a trade deal,” Trump wrote. “Let them work humanely with Hong Kong first!”

China doesn’t want external advice on how to deal with Hong Kong.

“Hong Kong is purely China’s internal affair. We have noticed that President Trump has previously said that ‘Hong Kong is part of China and they’ll have to deal with that themselves. They don’t need advice,”’ China’s Ministry of Foreign Affairs spokeswoman Hua Chunying said in a written comments to a question about Trump’s tweet. “We hope that the U.S. side will do as what they say.”

China’s position on the trade negotiations has been consistent and clear, Hua said, adding that China hopes the U.S. can meet halfway and implement the consensus of the two leaders in Osaka, “and find mutually acceptable solutions through dialogue and consultation, on the basis of equality and mutual respect.”

Trump ended his Twitter post with an apparent overture to Xi -- writing “Personal meeting?” -- without clarifying whether he was suggesting another summit.

Hua said the two leaders “have always kept in touch through meetings, calls, and letters.”

Donald J. Trump

@realDonaldTrump

I know President Xi of China very well. He is a great leader who very much has the respect of his people. He is also a good man in a “tough business.” I have ZERO doubt that if President Xi wants to quickly and humanely solve the Hong Kong problem, he can do it. Personal meeting?

Sent via Twitter for iPhone.

View original tweet.

To contact Bloomberg News staff for this story:

Miao Han in Beijing at [email protected]

To contact the editors responsible for this story:

Sharon Chen at [email protected]

John Liu, Brendan Murray

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