Trade war: Trump says China "broke the deal" during negotiations

President Trump during a rally in Panama City Beach, Florida, Wednesday. Photo: Scott Olson/Getty Images

China's Commerce Ministry said in a statement on its website Wednesday it would retaliate with "necessary countermeasures" if the U.S. increased tariffs.

Details: It's comments came as President Trump told supporters at a rally in Panama City Beach, Florida, he was introducing the tariffs because China "broke the deal" in the ongoing trade talks. "[T]he vice premier tomorrow is flying in — good man — but they broke the deal," he said, referring to China's chief negotiator, Liu He, who's due to be in Washington, D.C., Thursday. "They can't do that, so they'll be paying."

Why it matters: Trump has threatened to increase tariffs on Chinese goods from 10% to 25%. His administration has accused China of "reneging" on its trade commitments, per Axios' Jonathan Swan. On top of this, the United States Navy said Thursday a U.S.-guided missile destroyer conducted naval drills with Japan, India and the Philippines in a waterway claimed by China in the contested South China Sea, per Reuters.

The big picture: Trump said he "won't back down until China stops cheating our workers and stealing our jobs." Trump's speech prompted Chris Rupkey, managing director and chief financial economist at global financial group MUFG, to write a note warning of the market dangers of using such rhetoric, CNBC reports.

"We are not sure who the president is addressing tonight in a campaign rally, but he is sure scaring the daylights out of the financial markets."

Go deeper:

What's next

University of Minnesota student jailed in China over tweets

Xi Jinping. Photo: Noel Celis - Pool/ Getty Images

A University of Minnesota student has been arrested in China and sentenced to six months in prison for tweets he posted while in the United States, according to a Chinese court document viewed by Axios. Some of the tweets contained images deemed to be unflattering portrayals of a "national leader."

Why it matters: The case represents a dramatic escalation of the Chinese government's attempts to shut down free speech abroad, and a global expansion of a Chinese police campaign a year ago to track down Twitter users in China who posted content critical of the Chinese government.

Go deeperArrow2 mins ago - World

⚖️ Live updates: Opening arguments begin in Trump impeachment trial

The second day of the Senate impeachment trial of President Trump will see a full day of opening arguments from Democratic House impeachment managers.

What to watch for: Democrats now have 24 hours — spread out over three days — to take their time to lay out their case against the president's alleged abuse of power and obstruction of Congress. It'll also allow them to highlight gaps that could be filled out by additional witnesses and documents from the administration.

This post will be updated with new developments as the trial continues.

Go deeperArrowJan 21, 2020 - Politics

Axios Dashboard

Keep up with breaking news throughout the day — sign up for our alerts.