Published: Fri, August 02, 2019
Finance | By Kristine Clayton

Trump rips China over trade, vows new tariffs in September

Trump rips China over trade, vows new tariffs in September

"This does not include the 250 Billion Dollars already Tariffed at 25%", the president tweeted.

Chinese Vice Premier Liu He, centre, poses with U.S. Trade Representative Robert Lighthizer, right, and Treasury Secretary Steven Mnuchin, for photos before holding talks at the Xijiao Conference Center in Shanghai.

The China tariff announcement immediately reversed a positive day on Wall Street, turning a 250 point-plus gain in the Dow Jones index Thursday into a loss of more than 100 points within 15 minutes of the White House announcement.

Traders are betting the new tariffs make a longer rate-cutting cycle more likely.

West Texas Intermediate for September delivery fell US$3.83 to US$54.75 a barrel at 1:41 p.m. on the New York Mercantile Exchange.

"Trade talks are continuing, and during the talks the United States will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country".

A day after the latest round of trade talks ended without a deal, President Trump on Thursday bashed China and said the USA would impose 10% tariffs on another $300 billion worth of Chinese goods on September 1.

US-China trade talks this year have alternated between progress and disaster, appearing to collapse in May only to be revived two months later after a meeting in Japan between Trump and Xi Jinping, his Chinese counterpart. Ten-year Treasury yields dropped to the lowest level in three years.

The surprise move came a day after face-to-face talks between US and China negotiators concluded in Shanghai.

Talks between the United States and China collapsed in May after USA officials accused China of pulling back from earlier commitments. "Many Americans continue to die", Trump said in a tweet. "And they're paying for these tariffs", Mr. Trump said. China rejected the claims, with the state-owned Xinhua news agency reporting that millions of tons of USA soybeans have been delivered to China since July 19, with local businessmen also looking to purchase cotton, pork and sorghum. The tweets indicate that the USA does not think the talks made sufficient progress, the source said.

USA officials want China to address the theft of intellectual property, stop subsidizing its companies and open its markets to more US goods.

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