Published: Tue, September 18, 2018
Money | By Bruce West

Stocks tumble as markets brace for Trump's next round of tariffs

Stocks tumble as markets brace for Trump's next round of tariffs

US tariffs on $200 billion more in Chinese goods begin September 24 at 10 percent, then would rise to 25 percent on January 1.

Additionally, Trump said United States will tariff $267bn of additional Chinese imports if Beijing takes retaliatory action against United States farmers or other industries.

"We stand ready to negotiate with China any time if they are willing to move towards serious talks to remedy trade problems", White House National Economic Council Director Larry Kudlow said Monday in NY.

President Donald Trump, to the alarm of United States trading partners, has kept his course of aggressive trade policy, imposing punitive tariffs on countries he accuses of cheating American workers.

China is expected to further retaliate against the United States, and top officials have warned that could include penalizing U.S. companies that rely on Chinese components for phones, cars, televisions, and other products.

Distance Beijing Heaping more duties on Chinese goods will only further distance Beijing from resolving the conflict through a negotiated solution, said one of the people.

Trump kicked off his trade war with China in March, imposing higher tariffs after an investigation by Trade Representative Robert Lighthizer had found that China used foreign ownership restrictions to require tech transfers from U.S. to Chinese companies, as well as conducting espionage to acquire intellectual property.

President Donald Trump's expected announcement of new tariffs on $200 billion in Chinese goods drew an immediate threat of reprisals from Beijing.

Trump told reporters earlier on Monday his impression is that Beijing wants to talk about a deal, and that he thinks "it's going to work out very well with China". Steel prices are up more than 10 per cent since February, the month before Trump announced his long-awaited tariffs of 25 per cent on steel and 10 per cent on aluminum, from a wide swath of trading partners.

The United States will spare Apple's Watch and other consumer gadgets from the latest round of tariffs on Chinese goods, a senior administration official has said in a last-minute reprieve for the technology industry.

"Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower United States growth and competitiveness and higher prices for USA consumers", Apple said in a letter commenting on the proposal.

The Chinese have previously hit back with tariffs on $50bn worth of U.S. products in retaliation, targeting their response against key parts of the president's political base, such as farmers.

In proceeding with additional tariffs, Trump ignored pleas from hundreds of U.S. companies who opposed the new levies at public hearings last month.

Trump has always been fiercely critical of China, accusing it during the 2016 campaign of "the rape" of the American economy and vowing to create a more balanced trade pattern.

They officials told reporters the lower initial tariff rate would give USA businesses time to find new suppliers.

A Treasury spokesman did not immediately respond to a query on the status of the China talks invitation.

"We seem to be good friends". "We don't have anything to announce to you today, in terms of any of the logistics of that, but, as the President has said, we are open to that and we hope that China will come to the table and address the concerns that we have raised", the official said.

This is the fourth round of tariffs to affect the USA bike industry this year.

A public comment period ended last week for the $200 billion tariff list, which included various internet technology products and other electronics, printed circuit boards, and consumer goods ranging from handbags to bicycles and furniture.

While economists generally estimate that the overall economic impact of the tariffs will be a fraction of a percentage point, they caution that the effects are hard to predict.

China's 'counterattack strategy needs to restrict exports to the United States as well as (imports of) US goods, ' Lou was paraphrased as saying.

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