Trump stokes trade war with vow to raise China tariffs

Trump stokes trade war with vow to raise China tariffs

Trump stokes trade war with vow to raise China tariffs

The 10% will go up to 25% on Friday, ' he tweeted.

US President Donald Trump threatened on Sunday to ramp up tariffs on Chinese imports, citing the slow pace of trade talks with Beijing.

Commodities trader Cargill said in March that U.S. "325 billion dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25 per cent", he said. It has not been confirmed if Liu He will be leading the delegation.

What did Mr Trump say?

"The atmosphere of the negotiations has changed", said a Chinese official with knowledge of the talks, and how they would proceed was being re-evaluated.

Shares tumbled in Asia early Monday after President Donald Trump threatened in a tweet to impose more tariffs on China. The problem is, the stock market hates trade wars, and when the president threatens (or actually imposes) higher tariffs on Chinese goods, stock prices fall.

"Second, he and his advisers may be hoping this will increase pressure on China and convince them to agree to a deal; however, this may backfire, as Chinese negotiators need to be responsive to China's domestic politics as well, and it will be hard for them to appear to be bowing to foreign pressure".

Canada is leaning on the United States to help settle the dispute with China, which has started to block imports of vital Canadian commodities amid a dispute over a detained Huawei executive. It had been scheduled to jump to 25% in January but the president held back while talks between the two sides continued.

The Dow lost more than 400 points at the bell as traders anxious about the continued trade war between the United States and China after Trump's tweet in which he complained that trade negotiations between the two largest economies in the world were moving too slowly. In the opening minutes of trading in NY, the three major US stock indices dropped significantly.

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He said: "The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!"

China could retaliate and hit back with higher tariffs on American imports, as well as tougher regulatory hurdles for United States companies doing business in China.

Chinese media outlets have been told not to independently report on Trump's overnight tweets or tweet about them, and instead adhere to any report from the official Xinhua news agency, said a source with direct knowledge of the matter.

A breakthrough in the trade talks could restore normality, he said.

The spokesman, Geng Shuang, said Monday that Beijing is "trying to get more information" following Trump's surprise announcement he might impose 25 percent tariffs on more Chinese imports.

"The President's willingness to risk a market disruption by threatening an unexpected tariff hike suggests that he might also be willing to risk the disruption that formally proposing auto tariffs or announcing the intent to withdraw from NAFTA might cause", Goldman Sachs said in research published over the weekend. Hopes for an accord have contributed to the big run-up in stock prices in the USA and China so far this year.

Trump complains of a large trade deficit with China, which he views as a symbol of America's decline as a manufacturing powerhouse.

The global agricultural commodity merchant said that trading opportunities created by the U.S. Oil prices reacted with a drop.

USA companies operating in China are said to be reviewing contingency plans developed in anticipation of tariffs increasing in December.

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