Dow Resumes Plunge as China Shocks White House with Hardened Trade Stance

Dow Resumes Plunge as China Shocks White House with Hardened Trade Stance

Dow Resumes Plunge as China Shocks White House with Hardened Trade Stance

The Trump Administration Friday imposed increased tariffs on import of Chinese products over USD200 billion worth from 10 percent to 25 percent.

However, China doesn't really have other good options for where to park its $3.1 trillion in foreign-currency reserves - the world's largest stockpile - making this an unlikely path, according to Ed Al-Hussainy of Columbia Threadneedle Investments. "So they'll be paying if we don't make the deal".

"We'll increase tariffs on China". "If they don't have any money even to buy a tractor, they're not going to buy furniture", he says.

"They broke the deal".

"The reality is, with the Tariffs, the economy has grown more rapidly in the United States and much more slowly in China."

The US has banned federal agencies from using Huawei technology and has done everything in its power to convince allies to bar Huawei, ZTE, and other Chinese firms from bidding on 5G contracts, to the point of threatening the United Kingdom with ejection from the Five Eyes intelligence sharing network if they awarded a contract to Huawei.

She doubted the Chinese side had simply miscalculated the potential American reaction, adding that Liu likely still believed he could offer enough concessions to ensure a deal.

"We want to see meaningful changes in China's trade practices, but it makes no sense to punish Americans as a negotiating tactic", French of the NRF complained in a statement. Data released Thursday showed the U.S. goods trade deficit with China shrank to its smallest level in five years in March, which could further embolden Trump as he escalates the trade war with Beijing. I happen to think that tariffs for our country are very powerful.

"While we are disappointed that the stakes have been raised, we nevertheless support the ongoing effort by both sides to reach agreement on a strong, enforceable deal that resolves the fundamental, structural issues our members have long faced in China".

Specialist worldwide distribution and services group Bunzl said finance director Brian May has made a decision to retire after more than 13 years in the role and 25 years at the company. Both the United States and China have dug in deep, with both countries drawing a hard line in the sand.

"They couldn't have done what they're doing".

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"The details will matter a lot", said Dean Pinkert, partner at the law firm Hughes Hubbard & Reed and a former member of the U.S. International Trade Commission.

The Trump administration hopes the new tariffs will force changes in China's trade, subsidy and intellectual property practices.

The US-China trade war has weighed on the global economy over the past year and created uncertainty for businesses and consumers. It was flat, right here. "We allowed China into the WTO, and they became a rocket ship", he said.

Why are the U.S. and China at odds? "So we put very heavy tariffs on China, as of Friday, and we put them on, also, eight months ago", he asserted.

"If trade tensions eventually lead to blanket United States tariffs on all Chinese goods, the potential impact to China's sovereign ratings could be much more serious, as it may tempt the authorities to abandon their restrained approach to policy easing, and fall back on credit stimulus measures that further exacerbate the country's already significant financial vulnerabilities", Fitch Ratings Director Sovereign Ratings Andrew Fennell said. "The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR".

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