Washington (AFP)

President Donald Trump abruptly ended negotiations with Democrats on new aid for households and businesses affected by the coronavirus pandemic on Tuesday.

"I asked my representatives to stop negotiating until after the elections," tweeted the US president, accusing Democratic leader in Congress Nancy Pelosi of not negotiating "in good faith".

"As soon as I win, we will vote on a big aid package that will focus on American workers and small businesses," he added, postponing talks until after the November 3 presidential election. .

The move immediately brought down Wall Street, which closed in the red, while many economists and experts have already warned that the absence of a new government boost could slow down the recovery in economic activity.

It means that many Americans, including those who are unemployed, from local communities and businesses such as hotels, airlines, bars and restaurants, are going to face financial difficulties in the coming weeks.

Democratic White House candidate Joe Biden accused Donald Trump of having "turned his back" on them.

"Make no mistake: if you don't have a job, if your business is closed, if your child's school is closed, if you see layoffs around you, Donald Trump has decided today that none of that, absolutely nothing, mattered to him, "Biden said in a statement.

Certain sectors severely affected, such as tourism and air transport, have already announced massive layoffs: 19,000 people for the airline American Airlines, 13,000 at United, or 28,000 in Disney theme parks.

The organization representing the airline industry, Airlines for America, said it was "disappointed" at the inability of politicians to agree on a text that "would have saved tens of thousands of highly skilled jobs".

- Aid expires gradually -

The Trump administration and elected Congressional Democrats began more than two months ago negotiating new aid for the 12.6 million unemployed Americans and for lowest-income households, as well as for businesses devastated by the consequences of the Covid-19 pandemic.

The measures adopted at the end of March as part of the gigantic support plan of 2,200 billion dollars, then extended by 500 billion, in fact gradually expire.

After several weeks at a standstill, discussions between Nancy Pelosi and Treasury Secretary Steven Mnuchin had yet resumed.

They spoke briefly shortly after Donald Trump's announcement, a spokesperson for Ms. Pelosi said, adding that Mr. Mnuchin took the opportunity to confirm the end of negotiations.

"Once again, President Trump has shown his true colors: to put his interest before that of the country, with the full complicity of Republican members of Congress," criticized Nancy Pelosi in a statement.

But the differences were too great, and the total amount of the envelope was particularly problematic.

The Democrats initially claimed 3 trillion dollars but over the course of the discussions agreed to lower it to 2,200 billion.

The Trump administration had for its part made a gesture, saying it was ready to 1.6 trillion after an initial amount of only 1000 billion.

Joining his voice to those of other economists, the president of the American Central Bank Jerome Powell had warned a little earlier against the disastrous consequences for the economy of an absence of new public aid.

"Too weak support could lead to a more fragile recovery, leading to unnecessary suffering for households and businesses," he said in a speech delivered virtually at the annual meeting of the economists association NABE (National Association for Business Economics).

"Over time, household insolvencies and business bankruptcies would increase, harming the economy's productive capacity and slowing wage growth," he warned, employing an unusually alarmist tone.

The boss of the Fed, who refrains from any partisan support, had been appointed to his post by Donald Trump.

© 2020 AFP