Trump Threatens Half a Trillion Dollars in China Tariffs

Trump Threatens Half a Trillion Dollars in China Tariffs

Currencies closely tied to the performance of the Chinese economy, such as the Australian and New Zealand dollars, have also fallen sharply while the Japanese yen, renowned for its safe haven status, has strengthened despite Japanese markets remaining closed for Golden Week holidays. With China we lose 500 Billion Dollars. "It's looking very good", Trump had said. The Aussie fell 0.6 percent to 69.75 US cents. China's commerce ministry did not immediately respond to a request for comment. That would be a classic Trump negotiating move, as it would jeopardize a almost done deal by causing embarrassment to the other side.

Whether the talks would proceed and how they would proceed are issues that are now being re-evaluated, the official told Reuters on condition of anonymity. China poses an enormous challenge to the United States of America.

Quoting an unnamed source, CNBC News said the Chinese Vice Premier will likely cancel the trip he had planned for himself and a 100-person delegation for the final round of talks.

Although there was always a risk the trade talks would break down in acrimony, the rapid shift from the White House comes after several weeks of both sides suggesting that the talks had been going well.

However, the size of the trade deficit with China isn't as large as Mr. Trump portrayed in his tweet.

Donald Trump announced the move on Twitter, complaining that negotiations between the two countries were proceeding too slowly. "If it's the latter, we'll see massive downside pressure across all markets".

A February study published by the Trade Partnership estimated that slapping 25 percent tariffs on all remaining non-tariff Chinese imports-which is exactly what Trump threatened to do on Sunday-would cost more than 2.1 million American jobs, reduce the size of the USA economy by more than 1 percent, and cost the average family of four about $2,200.

USA companies in everything from computer chips to tractors have said President Donald Trump's trade wars, including disputes with Beijing and global steel tariffs, have had an impact on them. Shares tumbled in Asia Monday after Donald Trump threatened in a tweet to impose more tariffs on China, spooking investors who had been expecting good news on trade.

"Raising tariffs means raising taxes on millions of American families and inviting further retaliation on American farmers", said Christin Fernandez, a spokeswoman for the Retail Industry Leaders Association. "I think that is a message that every American, regardless of whether you voted for President Trump or whether you voted for a Democratic member of Congress, can get behind because it's for the national goal, and when it comes to winning in the 21st century, I think we're all on the same team".

Investors took fright at a worsening of the dispute between the world's biggest economies, with the U.S. president vowing to hike tariffs this week on $200bn of Chinese products.

"The urgency is gone".

The announcement ended a four-month truce in a trade war that has cost the world's two largest economies billions of dollars, slowed global growth and disrupted manufacturing and farming.

The report here helped to see USD/JPY hit a session high of 110.85 from around 110.65-70 levels earlier as China offer some glimmer of hope for a trade deal to still come to fruition.

Trump's move could backfire, said Tai Hui, Asia-Pacific chief market strategist at J.P. Morgan Asset Management.

The Wall Street Journal reported that Beijing was considering pulling out of negotiations.

A decision on whether to go ahead with the talks this week has not been made, the report said.

Last week US Treasury Secretary Steven Mnuchin described talks held in Beijing as "productive".

The U.S. had been targeting May 10 to announce a deal, that would be finalized and signed by Trump and Chinese President Xi Jinping later at an official summit, people familiar with the negotiations said last week.

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