US-China trade talks: Trump says China 'broke the deal'

American President Donald Trump has accused China of breaking a deal in the U.S.-China trade talks.

Addressing a rally in Florida on Wednesday, Trump hit out at China for backtracking from its commitments and attributed China's U-turn for his renewed tariff threat on Beijing.

"By the way, you see the tariffs we're doing? Because they broke the deal. They broke the deal," Trump said.

Trump warned China that the United States "won't back down until China stops cheating our workers and stealing our jobs."

At the rally, Trump said even if no deal happens with China, the U.S. is fine and the trade war will continue.

"If we don't make the deal, nothing wrong with taking in over $100 billion a year, $100 billion, we never did that before," Trump noted.

Referring to the visit of Chinese Vice Premier Liu He on Thursday, Trump said, "So, they're flying in, the vice premier tomorrow is flying in — a good man — but they broke the deal. They can't do that, so they'll be paying."

China's retreat triggered Trump's tariff threat

The President's claim was partially endorsed by a Reuters report that said China's diplomatic cable to Washington on Friday night was the trigger behind Trump's tariff threat. Chin made major edits to a nearly 150-page draft trade agreement amounting to blowing up long drawn negotiations between the two.

According to the U.S government sources, the document expressed China's reversals on many core demands put forth by the U.S. All the seven chapters of the draft deal were edited and China deleted portions relating to its commitments.

Trump rattled markets on Sunday afternoon with a threat to raise American levies on Chinese goods saying the first shot will come from Friday and more "shortly."

China says it will retaliate

Meanwhile, China said on Wednesday that it will be forced to retaliate with countermeasures if the U.S. raised tariffs to 25 percent from the current 10 percent as threatened by President Trump.

"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 ministry said.

It said the Chinese side deeply regrets if the U.S. tariff measures are implemented it will have to take countermeasures.

Trump spoiling financial markets

Responding to Trump's Florida speech, Chris Rupkey, managing director of financial group MUFG said rhetoric will only roil the markets.

"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," Rupkey noted.

Rupkey also added that the U.S has never been "so close to recession's door simply based on the policies from Washington."

This article originally appeared in IBTimes US.