Markets Tumble Over Fears of a U.S.-China Trade War

09 May, 2019, 04:26 | Author: Gerard Cortez
  • World shares mixed as China affirms trade talks to go ahead

Sunday's (May 6th) comment came as a surprising move by United States president to mount pressure on China, since he had cited progress on trade talks as early as last Friday (May 3rd).

For weeks, the Trump administration had suggested that talks were making steady progress, and financial markets seemed to have priced in a peaceful resolution to the trade dispute.

I assume that Trump has examined both the political and economic implications of increasing tariffs on Chinese goods.

Trump's Sunday tweet was meant to rattle Beijing, and it came without extensive discussions among his economic team, officials said.

It's unclear whether the brinksmanship tactics from the Trump administration will help or hurt the prospects of a deal getting done quickly, something that investors want.

Another round of negotiations is slated to begin in Washington on Thursday.

The trade war between the USA and China - which seemed to be nearing an end - has suddenly escalated with the threat of new tariffs.

Separately, China's Commerce Ministry said it would respond in kind, adding that escalating trade frictions were not in the interest of either country or the world. The move came after China backtracked on virtually all of the major parts of a trade pact being negotiated with Washington, Reuters reported on Wednesday.

In the last two days, the Dow has tumbled by more than 540 points.

Mnuchin, who has been more open to a deal with improved market access, and at times clashed with Lighthizer, appeared in sync with Lighthizer in describing the changes to reporters on Monday, while still leaving open the possibility new tariffs could be averted with a deal. The mood had shifted dramatically, and their Chinese counterparts were now attempting to renegotiate significant aspects that United States officials already believed had been settled weeks before, leading to the belief that prospects for a deal were fading. The official disputed the assertion that China was backtracking on its promises, adding that US demands were becoming more "harsh" and the path to a deal more "narrow" as the negotiations drag on.

Trump critics drag Tiger Woods over Medal of Freedom
Trump has been known to cheat on the golf course, including, reportedly , during previous games with Woods. Speaking directly to his loved ones, Woods added: "You guys have meant so much to me in my life".

President Donald Trump on Sunday threatened over Twitter to jack up tariffs on $200 billion in Chinese goods from 10 percent to 25 percent, as well as impose 25 percent levies on more than $300 billion in products imported from China.

The trade tensions have also rattled financial markets, jeopardising a USA stock market rally that Mr Trump sees as a vote of confidence in his economic policies.

"They have their internal politics, too", said Michael Pillsbury, director of the Hudson Institute's Centre on Chinese Strategy and an adviser to the Trump White House.

"We're not breaking off talks at this point".

China is Alabama's second largest trade partner. But behind the scenes, officials still aren't sure if Vice Premier Liu He will show up.

"The president, I think, is trying to get China's attention and get them back to the table", said Thune.

Chinese Vice Premier Liu He is expected to join a delegation in the United States this week. China wants them lifted; the USA wants to keep tariffs as leverage to pressure the Chinese to comply with any agreement.

"The market was just very complacent thinking a deal would happen", said Sandy Villere, portfolio manager at Villere & Co.

"You see the tariffs we're doing?" He stopped short of criticizing the president's plan to raise tariffs.

Recommended:



Popular

Zendaya's Cinderella Met Gala Look Criticized by Lindsay Lohan
Lupita Nyong'o spent four hours getting ready in a rainbow, cool chick getup, her hair high and packed with golden Afro picks. Beneath the mask Miller's face appeared to have seven eyes, an illusion that sent the fans into a frenzy.

What channel is Tottenham vs Ajax on?
We help you discover publicly available material and act as a search engine. In the next action, we need to put him out because he didn't feel well".

Boeing Hushed Info About Safety Alert Problems With 737 MAX for YEAR
Boeing has admitted it knew about a missing feature on its 737 Max plans a year before the first of two fatal crashes. However, the statement asserts that the software issue did not adversely affect the airplane's safety or operation.

Google Pixel 3a spec sheet leaks, withholds nothing
Every year, Google comes with new advancements in its assistant and showcases how Google Assistant is smarter than others. Watch the 90-minute Google I/O keynote on YouTube at 10 AM PST on May 7 where more will likely be revealed.

Russian Federation says at least 40 dead on burning jet
Video of the crash shows the plane bouncing on the runway and becoming engulfed in flames shortly after making a hard landing. While numerous 78 passengers and five crew managed to escape, an unconfirmed number of people are still unaccounted for.

Biden calls Trump a 'clown' - Biden calls Trump a 'clown'
Joe voted for NAFTA and permanent trade relations, trade agreements with China. Kamala Harris plans to attend an NAACP dinner in Detroit.

Maximum Security's Kentucky Derby appeal denied
The KHRC's decision can after West's legal team filed the appeal to the commission based in Lexington, Kentucky. Stewards determined Maximum Security impeded the paths of several horses in the race.

Mujahid: Malaysia condemns Israeli attacks in Gaza | Malaysia
President Trump tweeted out USA backing for Israel, saying: "We support Israel 100 percent in its defense of its citizens". Indeed, by the end of the weekend, the number of rockets fired into Israel from Gaza reached 690, according to the IDF.

Trump says Robert Mueller shouldn't testify before Congress
According to CNN , Harris said in the letter that, "Such inappropriate requests by the President have been well documented". Trump also incorrectly tweeted on Sunday that the report showed "no obstruction". "We must hear from Director Mueller".

Let's make a Brexit deal, UK PM May tells Labour opposition
Shockwaves have hit the party since 29th of March, he said , and local election losses a "shockwave at the leadership". The Conservatives lost 1,334 councillors, while Labour failed to make expected gains, instead losing 82 seats.