Published: Sat, August 03, 2019
Finance | By Kristine Clayton

USA to slap 10% tariff on $300 bn more in Chinese goods

USA to slap 10% tariff on $300 bn more in Chinese goods

In our global section, we talk about the new tariffs imposed by Donald Trump on Chinese goods, and the US' formal withdrawal from the INF treaty. "President Donald Trump's move to re-escalate tensions with China has clearly increased the pressure on the Fed to deliver further policy loosening, but the relative resilience of employment growth suggests that trade tensions alone won't necessarily be enough to convince officials to cut rates again". Soon after his announcement to impose additional tariff on the import of Chinese products, the stock markets in NY took a plunge.

The sale was the first to a private buyer since Beijing offered to exempt five Chinese soybean importers from the 25 percent retaliatory tariffs China imposed on USA goods roughly a year ago. She called on Washington to "abandon its illusions, correct mistakes, and return to consultations based on equality and mutual respect".

Trump has insisted that the tariff war is hurting China but not the United States. Chinese companies are losing business as USA importers are scouting for cheaper, tariff-free sources of the same goods outside China. "In addition, they will serve as an initial step toward bringing balance to the trade relationship between the United States and China". Xi is not likely to be mollified by Trump's positive thoughts, or the consolation that the new tariffs are "small". -China row, Pompeo responded: "There have been negative implications from decades of bad behavior from China".

The news hit USA and Asian financial markets hard.

Washington earlier imposed 25% tariffs on $250 billion in Chinese products.

"The tariffs will be credit negative for a number of USA sectors, including computers and electronics, manufacturing and apparel and leather".

Beijing is about to run out of American imports for retaliation due to their lopsided trade balance. Beijing retaliated by raising import duties on $110 billion of USA goods. But regulators have extended retaliatory measures to include slowing down customs clearance for American companies and putting off issuing license in insurance and other fields.

All very nice words but hinges a lot on the big "if" on trade talks.

"President Trump is, in effect, using American families as a hostage in his trade war negotiations", said Matt Priest, president of the Footwear Distributors and Retailers of America.

Mr Trump says his trade tactics are working, and that Beijing is feeling the pain.

The president's action came as a surprise, just as USA and Chinese negotiators were concluding a 12th round of what the White House called "constructive" trade talks in Shanghai.

Another round of talks between the world's two largest economies has been scheduled for September. Before Trump's announcement, the likelihood was pegged at under 50 percent.

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