Markets dive after ‘Tariff Man’ threat by Donald Trump

Markets dive after ‘Tariff Man’ threat by Donald Trump

Markets dive after ‘Tariff Man’ threat by Donald Trump

While Asian equities dropped yesterday in the wake of the biggest slide in stocks on Wall Street since the mid-October downdraft, USA futures advanced after the statement from China echoed Trump's optimism over trade talks. Ben Sasse, a Nebraska Republican and opponent of Trump's tariff policy, criticized the president's tweets on that basis.

The stock market will be closed on Wednesday, during President H.W. Bush's funeral.

Despite Trump's talk of trade deficits, at the heart of the issue for the U.S. is how China accesses intellectual property from American companies.

"ALL subjects discussed!" Trump tweeted.

Then, on Tuesday, Trump seemed to thumb his nose at that White House talking point by dubbing himself "Tariff Man". "But if not remember, I am a Tariff man".

"When people or countries come in to raid the great wealth of our Nation", he tweeted, "I want them to pay for the privilege of doing so".

Beijing is to start quickly implementing specific items where there is consensus with the USA and push forward on trade negotiations within the 90-day "timetable and road map", the Chinese Ministry of Commerce said in a statement yesterday morning.

After describing the agreement made between China and the USA during the G-20 summit in Argentina over the weekend as "an incredible deal" and "one of the largest deals ever made", Donald Trump has done an unsurprising 180 after apparently finally appearing to catch up with reality. The changes U.S. officials have sought include forcing Beijing to lower tariffs on U.S. goods, stop dumping cheap steel and aluminium into foreign markets, and halting the theft of intellectual property, among other things.

US President Donald Trump threatened on Friday (22 June) to impose a 20% import tariff on all cars manufactured in the European Union if recent sanctions the bloc slapped on Washington are not "broken down and removed", continuing the tit for tat trade war with America's nominal allies.

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One Chinese official said officials were "waiting for the leaders to return" before publicising details.

But Kudlow said the ultimate amount will depend on market prices and the health of China's economy.

At the sidelines of last weekend's G20 summit, Mr Trump and Mr Jinping agreed not to increase tariffs for 90 days to allow negotiations to take place. Germany, in consultation with the United States, has already taken steps to limit the ability of Chinese firms to buy high-tech German companies.

"All of these help to safeguard China's legitimate interests, and are also in the interests of the United States, and even more are in line with the expectations of the global community", he added.

It did not give further details but it crucially did not contradict the USA president's remarks that China would buy more goods from the United States to help close their trade gap and structural changes to intellectual property protection.

Those 10 percent tariffs were scheduled to ratchet up to 25 percent on January 1 if the US and China failed to reach an agreement to at least postpone that move.

German automakers said after the meeting they told Trump they planned to boost US investments, but warned they would be unable to do so if the administration imposed new tariffs.

For its part, China has said it will import more U.S. products to reduce its trade surplus, but no dollar amount has been publicly discussed.

During the talks in Buenos Aires, Trump agreed to delay a scheduled escalation in United States tariffs on many Chinese goods, from 10 percent to 25 percent, that had been set to take effect January 1.

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