Trump's 10% China tariff could boost phone, console, laptop prices

Trump's 10% China tariff could boost phone, console, laptop prices

The move immediately sent stock prices sinking. "We are disappointed the administration is doubling-down on a flawed tariff strategy that is already slowing USA economic growth, creating uncertainty and discouraging investment", said David French, senior vice president for government relations at the National Retail Federation.

"In addition to the actual cost of tariffs, we know some of the mitigation efforts by moving manufacturing from location to different locations has resulted in overall slight uptick in our cost of goods sold, really as part of the mitigation". But the new tariffs will hit a vast range of consumer products from cellphones to silk scarves. While the White House called the talks "constructive" in a statement issued Wednesday, Trump concluded that the two US officials actually came away with nothing, the people said. -China row, Pompeo responded: "There have been negative implications from decades of bad behavior from China".

Money markets moved to price in a 100% chance of a 10 basis point rate cut by the European Central Bank at its next meeting in September.

On Wall Street, the Dow Jones share index fell sharply, tumbling about 1 percent.

They followed similar falls in Asia where the Nikkei closed 2.1% lower and Hong Kong's Hang Seng ended down 2.3%.

Trump later said if trade negotiations fail to progress he could raise tariffs further - even beyond the 25 percent levy he has already imposed on $250bn of imports from China. But he had suspended the threat after meeting with President Xi Jinping in Osaka, Japan, in June.

The October Fed funds rate futures have jumped to now fully price in a rate cut in September, compared with only around 60% before the tariff announcement.

"When you have issues around trade you have an impact on global growth and if the two largest economies in the world don't agree on trade.that's just not a positive for oil and it's really demand driven", Chopra said in an interview.

Pompeo - who had assured Southeast Asian partners a day earlier that Washington would not force them to choose sides between the United States and China - used his speech on Friday to portray USA investment as a more benign option.

The Chinese government will have to be very careful in its approach to future trade talks with the Trump administration, analysts say. "I don't expect the Chinese to sit by ..."

"If the U.S.is going to implement the additional tariffs, China will have to take necessary countermeasures", Foreign Ministry spokeswoman Hua Chunying said at a regular briefing in Beijing on Friday. Chairman Jerome Powell pointed repeatedly to the uncertainty caused by Trump's pursuit of trade wars on multiple fronts as a reason for the rate cut. On Thursday, the market hit a low of $53.59, before settling 7.9% lower.

"President Trump is, in effect, using American families as a hostage in his trade war negotiations", said Matt Priest, president of the Footwear Distributors and Retailers of America.

The announcement "is likely to put a comprehensive deal further out of reach", said Fitch Solutions in a report.

"After the US-China summit meeting, people had expected there would be a lull for quite some time", said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

Trump's trade war has already messed with global supply chains, and will undoubtedly do more damage in the months to come.

The United States has insisted that China buy more farm goods and agree to cement certain changes into Chinese law.

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