Markets Tumble Over Fears of a U.S.-China Trade War
09 May, 2019, 04:26 | Author: Gerard Cortez
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.
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.
Sri Lanka's main worldwide airport is located in the area, but police said there was no disruption to airport traffic. The attacks were blamed on the local National Thowheeth Jama'ath (NTJ) whose leader was among the suicide bombers.
Last month, the House Judiciary Committee subpoenaed McGahn seeking documents by Tuesday and for him to testify on May 21. Cicilline said there has not been "compliance yet" from the attorney general. "The American people deserve the truth".
President Donald Trump said on Sunday he would raise tariffs on $ 200 billion worth of Chinese goods from 10-25 percent by Friday. Oil prices stabilised on Wednesday as markets remained relatively tight amid US sanctions on crude exporters Iran and Venezuela .
Of course, the rumors have led to a chain of reactions from the singer's fans who believe there is no Met Gala without Rihanna . Each year, the best and brightest from the worlds of fashion, film, music and beyond descend on the Met for the gala.
He has railed against America's trade deficit in goods China, which swelled previous year to record $419 billion. Trump is also demanding that China stop intellectual property theft and subsidies to state-owned companies.
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