Trump Says China Broke the Trade Deal, Breaking China's Market

Share

The U.S. government has filed plans to raise tariffs on $200 billion worth of Chinese imports from 10% to 25% Friday.

Monetary markets grew to change into unstable this week after President Donald Trump threatened to impose extra tariffs on Chinese language goods, a threat that is made a decision to change into truth early Friday.

Kevin Divney, senior portfolio manager at Russell Investments, says it makes sense to minimize holdings in USA goods companies that have more exposure to worldwide trade policies.

US President Donald Trump speaks during a rally at the Aaron Bessant Amphitheater on May 9, 2019 in Panama City Beach, Florida.

Trump has railed since his days on the campaign trail about the USA hemorrhaging money on global trade agreements.

Negotiators will meet at 5pm EDT (2100 GMT) on Thursday, Trump said.

May says working on Brexit agreement with Labour
Confirmation that European elections would go ahead came with only hours to go before a voter registration deadline. Britain's Prime Minister Theresa May has not managed to get a Brexit deal across the line.

Since July previous year, China has cumulatively imposed counter-tariffs of up to 25% on about US$110 billion of U.S. products.

United States government and private sector sources previously told Reuters that a draft trade agreement was riddled with reversals by China that undermined core USA demands.

"We need a positive resolution of this ongoing tariff dispute, not further escalation of tensions", he said in a release posted on the ASA web site.

Douglas H. Paal, vice-president of the Asia Program at the Carnegie Endowment for International Peace, said it "makes sense to continue the talks because the alternative would be a drastic signal to markets".

The US says China is backtracking on promises, such as protecting intellectual property and stopping unfair trade practices.

Many market pundits have pointed out that the USA operates from a position of economic strength compared to China, especially given stronger-than-expected recent GDP and employment data.

Tottenham beaten by Ajax in first leg
Ajax have one foot in the Champions League final after they beat Tottenham 1-0 at the Tottenham Hotspur Stadium on Tuesday night. Van de Beek struck 10 minutes later, though, to get Ajax on the board.

Meanwhile, new economic data for April showed that inflation as measured by the consumer price index came in at the expected 2.5%, while inflation as measured by the producer price index-a measure of producers' input costs-came in at 0.9%.

Other major indexes in Asia, such as the Shanghai composite and Hong Kong's Hang Seng Index shed 0.41 percent and 0.42 percent, respectively, around 10:30 a.m. Japan's Nikkei 225 was also down by 0.86 percent in the same time period.

The trade deficit is the difference between how much the United States imports from other countries and how much it exports. While nearly no cars are imported from China (GM imports a small number of smaller SUVs that it makes in China), a good number of vehicle parts are, which will increase the cost of making trucks and SUVs in the United States.

"For months, USA companies and agricultural producers and their respective trade associations have desperately urged the two sides to come to some kind of trade agreement that would prevent the further use of tariffs by both countries, fearing such a scenario would cripple their already-damaged bilateral trading relationship", said Nelson Dong, senior partner at global law firm Dorsey & Whitney. "The effects on business confidence and financial markets around the world could be more significant, potentially adding to reasons for renewed policy loosening".

On Tuesday, May 7, the Dow Jones Industrial Average (DJIA) fell nearly 500 points, or close to 2%.

Uh-Oh Rihanna May Not be Attending the 2019 Met Gala
This year's co-chairs include Harry Styles , Lady Gaga , Serena Williams and Gucci's Alessandro Michele . Ahead of the Met Gala here's what you need to know about the history of the event and this year's theme.

Share