Published: Tue, May 07, 2019
World Media | By Shelia Harmon

China backtracking on trade deal caused Trump to threaten to raise tariffs

China backtracking on trade deal caused Trump to threaten to raise tariffs

"All that depends on the attitude of the United States", the official said. USA inventory data helped push oil prices lower last week, but the market has become "overly bearish", said Bjarne Schieldrop, Oslo-based chief commodities analyst at Norwegian bank SEB AB.

"We do know the president tends to retreat from more aggressive displays, so I am viewing this thinly veiled threat as political posturing or a tactical decision to apply more pressure on China to put through a trade deal that aligns with the best United States of America economic interest at heart".

Mr Trump tweeted, "The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!"

What did Mr Trump say?

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Hours later, National Security Advisor John Bolton announced the carrier deployment, calling it "a clear and unmistakable message" to Iran that any attack on US interests or on those of its allies will be met with "unrelenting force". Liu and about 100 other officials had been scheduled to arrive Wednesday for what was shaping up to be the final round of negotiations. He's still trying to maintain the illusion that China is somehow paying for the tariffs that his administration has imposed.

Hours after reports that the Chinese delegation was waffling over its plans to visit Washington, a spokesman for China's Ministry of Foreign Affairs confirmed at press conference in Beijing on Monday, May 6, that a delegation was still planning to make the trip and conduct the talks.

"Let Trump raise tariffs".

Monday's actions come amid an escalated trade war between the US and China. "If it's the latter, we'll see massive downside pressure across all markets".

The US announces it will impose tariffs of 25 per cent on US$50 billion (S$68.2 billion) of Chinese imports, particularly electronics, in the first round of tariffs specifically targeted at China.

The Goldman Sachs analysts said that while Trump's announcement "lowers the odds of a successful conclusion" to US-China trade negotiations, the firm thinks there is only a 40% chance that tariffs on China will go up on Friday.

Already reeling from reduced demand for their crops after China imposed a 25 percent retaliatory tariff on soybeans, farmers struggling to deal with flooding rains faced the prospect that Trump might fail to reach a deal with Beijing to end a costly trade war.

Technology and industrial companies were leading the sell-off on Monday am. "I think that is a message that every American, regardless of whether you voted for President Trump or whether you voted for a Democratic member of Congress, can get behind because it's for the national objective, and when it comes to winning in the 21st century, I think we're all on the same team".

"Our biggest competitor in my view is probably China in terms of who's going to win the 21st century", Khanna said.

"The urgency is gone".

Here is a look at the impact the US-China trade war has had so far on the two economies and the rest of the world. Economists from the Federal Reserve Bank of NY and Columbia and Princeton universities found in a recent study that the USA consumers and businesses, not China, were paying for the cost of the tariffs, which had resulted in $3 billion a month in higher taxes.

Trump's move could backfire, said Tai Hui, Asia-Pacific chief market strategist at J.P. Morgan Asset Management.

Brazil's JBS, the world's largest meatpacker, has been able to boost meat exports to China as the tensions between the Washington and Beijing escalated. Representatives from both sides were set to meet this week in Washington.

Trump's recent decision to walk away from talks with North Korea is likely at the back of investors' minds, according to Mahajan.

The Wall Street Journal, citing unidentified sources, said China's government was considering cancelling this week's talks.

"After weeks of talks and suggestions from the US administration that a deal was close, the sudden ramping up of trade tensions caught investors by surprise", Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said in a note.

In his Sunday tweet, Trump promised to raise import taxes on $200 billion worth of Chinese goods to 25 percent from 10 percent this Friday.

Negotiations about tariffs have been one of the remaining sticking points between the two sides. China announces 10 per cent retaliatory tariffs on US$60 billion of American goods.

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