U.S. President Donald Trump has warned that the U.S.-China trade war can ratchet up further, if the United States wants.

In a cabinet meeting on Tuesday, Trump said, “we have a long way to go as far as tariffs, where China is concerned, if we want”.

“We have another $325 billion that we can put a tariff on if we want,” he continued.

In the meeting, the president confirmed that the United States is currently talking to China about a deal but added that he wished China “didn’t break the deal that we had”.

Earlier this month, the Texas Independent Producers and Royalty Owners Association (TIPRO) revealed that it remained hopeful that the United States and China would agree to a deal and bring an end to the trade war.

Back in June, the American Petroleum Institute signed a letter urging Trump’s administration to get back to the negotiating table with China, after talks between the two countries broke down.

The greatest impact of the trade war on the global oil industry is its effect on oil prices, Steve Wood, a managing director at financial services company Moody’s, told Rigzone in June.

“The market is concerned that a prolonged dispute will result in slower global economic growth leading to lower demand for oil,” Wood said at the time.

“This, in turn, has caused oil prices to weaken, which reduces cash flow and earnings for oil producers,” he added.

In May, Trump announced on Twitter that the United States would make a deal with China “when the time is right”.

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