Tariffs to take effect Friday could impact KC companies

Tariffs to take effect Friday could impact KC companies

The Chinese government said Vice Premier Liu He will go to Washington as planned, dispelling fears he might cancel after Trump threatened to escalate a fight.

Vice President Mike Pence said on Friday that "President Trump remains very hopeful" about reaching a trade deal with China, and Treasury Secretary Steven Mnuchin recently called discussions "productive". Mnuchin and Lighthizer offered no details of China's alleged backsliding, and there was no immediate response from Beijing. Speaking at the same event Monday afternoon, Brzytwa said any deal with China has to include the elimination of the tit-for-tat tariffs both countries have levied on one another's goods since a year ago.

The Trump administration has threatened to raise tariffs on $200 billion in imports from China to 25% from 10%, starting on Friday.

The US was set to impose higher tariffs on China on Friday, a day after representatives from both nations are scheduled to resume trade talks in Washington.

The possibility that the trade dispute could escalate represents a marked shift from just a few weeks ago, when talks between the U.S. and China appeared to be on track for an agreement.

Investors will likely have to deal with a volatile market for some time amid uncertainty over whether the US and China can reach agreement on trade. "It certainly increases the possibility that you'll have no deal". Hiring decisions, too, hinge on carefully calculated projections, and retailers say the unknowns surrounding new tariffs have forced them to reconsider plans for the rest of 2019. Markets steadied after a Chinese spokesman said Monday that envoys still were preparing to go to the United States, though there was no word then whether Liu would take part. To put it in a different way, China is doing of its own accord that which Trump and those of his political tradition claimed they had always wished China would do.

President Trump's plan to hike tariffs on Chinese goods from 10% to 25% are spooking the US markets. Also unclear is what would happen to the US tariffs on Chinese imports.

A composite of European stocks closed at a five-week low, while Japanese and Korean shares declined after a Monday holiday. -China trade war probably wouldn't be good for AMD and Nvidia's financial results.

A day later, Treasury Secretary Steven Mnuchin and the top USA trade negotiator, Robert Lighthizer, said that China was reneging on commitments it made in earlier rounds of negotiations. China wants the tariffs removed. -China trade negotiations. Despite the market drop, China's official media stayed silent on Trump's comments all morning. "That in our view is unacceptable", he said, adding that significant issues remain unresolved, including whether tariffs will remain in place. "China won't shun problems and is honest about continuing talks", Geng said.

No details of the talks have been released.

Xi is "adamant about party-state control over major sectors of the economy", Lam said. But none of the moves directly addresses American complaints. The American president accused Beijing of backtracking on commitments made in the rapid-fire negotiations.

Some market analysts say Mr. Trump's aggressive tactics are unlikely to sway Chinese officials into making concessions on trade. They see that as "having another country decide your economic policy".

"This is a game of poker and the United States is playing their hand", said Doug Cote, chief market strategist at Voya Investment Management. The trade war is creating uncertainty for businesses trying to decide where to buy supplies, locate factories and make investments.

Experts say Trump still appears to have an upper hand in the trade negotiations not least because of surging United States equity markets and a strong labor market, which have reduced fears of a slowdown. The door wasn't closed to talks even if the USA raises tariffs, the newspaper said. "We're optimistic that an agreement can be mutually beneficial". "If Trump's threat becomes reality", Cochrane said, "it will be a game changer for the global economy".

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