How trade tensions with China are affecting Alabama

How trade tensions with China are affecting Alabama

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

Chinese Vice Premier Liu He, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer arrive for a group photo session after concluding their meeting at the Diaoyutai State Guesthouse in Beijing, China, May 1, 2019.

Trump has approved 25% percent tariffs on $50 billion of Chinese goods and 10% on $200 billion.

Benchmark U.S. indexes slumped Tuesday amid investor concerns over escalating trade tensions between the U.S. and China.

Chinese officials are heading to Washington to try to salvage negotiations aimed at breaking an impasse between the world's two biggest economies over Beijing's aggressive push to challenge American technological dominance. They include better protection of US intellectual property and an end to forced technology transfers from USA companies and cybertheft of American trade secrets.

China reversed its commitment to change laws on theft of intellectual property and trade, forced technology transfer, competition, access to financial services, and currency manipulation, the report said.

U.S. officials say the world's two largest economies had been close to an agreement but they claim Beijing reversed course in recent days.

Boeing Co, the single largest USA exporter to China, slipped 1.8% and Caterpillar Inc declined 1.3%. "I still think we'll get some sort of positive announcement on Friday".

US equities fell by the most since March as investors remained on edge over President Donald Trump's threat to increase tariffs on billions of dollars of imports from China.

Trump said that trade deal talks between the two countries were progressing "too slowly", so he had made a decision to hike tariffs on Chinese goods.

Biden, who polls show is the Democratic frontrunner, has not been involved in any substantive talks about trade or any other matter since he left office in January 2017.

But stumbling blocks remained, even before Mr Trump accused China of backsliding on what it had already agreed to. China's exports fell in April amid a bruising tariff war with Washington, adding to pressure on Beijing on the eve of negotiations aimed at settling the fight over its technology ambitions. It also has retaliated by slowing customs clearance for US companies in China and delaying issuing licenses in insurance and other industries.

Those new tariffs will come into force "shortly", Trump said. For months Washington and Beijing were content to engage in tit-for-tat escalations on trade, but they now find themselves "having to discuss the issues at the heart of the matter, and they can see how hard it is to reconcile their mutual points of view", Dufour continued. Liu has been described by some officials as the "closer" who has the authority to negotiate on Chinese president's Xi Jinping's behalf. If he does, it's a good sign that the talks are back on the table and a deal is within reach, sources said. "But for now. come Friday there will be tariffs in place", he said.

"If Trump's threat becomes reality", Mr Cochrane said, "it will be a game changer for the global economy".

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