Trump on China trade talks: ‘We are not ready to make a deal’

President Trump on Friday said he was not ready to strike a trade deal with China, dimming hopes for a breakthrough in the near future.

“We are talking to China. We are not ready to make a deal, but we’ll see what happens,” Trump told reporters at the White House as he departed for a fundraiser in New York. “They want to make a deal. I’m not ready to make a deal.”

{mosads}Stock markets dropped following the remarks, with the Dow Jones Industrial Average falling 200 points.

Trump recently said he would impose a 10 percent tariff on $300 billion worth of Chinese imports to the United States starting Sept. 1. The Trump administration had already imposed a 25 percent tariff on a separate $250 billion of imports from China.

China responded by weakening its currency, adding further volatility to financial markets. The world’s second-largest economy has also moved to block purchases of U.S. agricultural goods, adding pain to American farmers.

Trade talks are scheduled to resume in September, though the escalating tensions have lowered expectations that a breakthrough is on the horizon.

Trump also hinted on Friday that the talks aren’t guaranteed to take place as planned.

When asked if he would cancel the next round of negotiations, Trump said, “Maybe.”

“Whether or not they’re canceled, we’ll see,” he told reporters.

The trade talks are likely to have an impact on U.S. restrictions on Chinese telecommunications giant Huawei. The U.S. this year put Huawei on a trade blacklist, citing national security concerns.

“We’re not going to do business with Huawei. We’re not doing business with them,” Trump told reporters on Friday. “That doesn’t mean we won’t agree to something if and when we make a trade deal.”

Updated at 12:34 p.m.