Trump Threatens Half a Trillion Dollars in China Tariffs

U.S. imports of furniture from China fell 13.5 per cent in the first quarter, which compares with a 37.2 per cent increase in imports from Vietnam and a 19.3 per cent rise from Taiwan.

Earlier, a Chinese official in Beijing said that China's top trade envoy is preparing to travel to Washington for crucial talks, despite Trump threatening to impose more punishing taxes on United States dollars 200 billion worth of Chinese products, citing slow progress in negotiations.

Commodities trader Cargill said in March that U.S.

Chinese government offices did not immediately respond to requests for comment on Trump's suggestion the USA would raise import taxes on $200 billion in Chinese products to 25% from 10% as of Friday. But he threatened to hike the tariffs on some imported Chinese goods from 10 percent to 25 percent, and he simultaneously threatened to hit the remaining untaxed Chinese imports with a new round of 25 percent tariffs.

China signaled on Monday it still plans to attend upcoming trade talks in Washington. "It's looking very good", Trump had said.

Chinese government officials said in Beijing that Trump's tweets were in conflict with the progress made to date in the trade negotiations. That would be a classic Trump negotiating move, as it would jeopardize a almost done deal by causing embarrassment to the other side.

On Sunday, Trump threatened on Twitter to increase tariff rates on $200 billion in imports from China to 25%, up from 10% now.

The threat, conveyed via Twitter, dashed expectations that the two biggest economies might forge a deal in talks this week.

Abruptly ending weeks of optimism that the White House and Beijing imminently would agree to unravel their dispute, the president said that the United States would soon begin collecting duties on more Chinese goods worth hundreds of billions of dollars. The Russell 2000 index of small company stocks bucked the trend, adding 0.95 points, or 0.1%, to 1,614.98.

Trump said "The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!"


Bunge Ltd The company reported a $125 million mark-to-market loss in August on a position in soybeans that bet a China trade war would be averted.

The decline is largely attributable to Mr Trump's tweets, as both the major US share market indices and Australian share market futures ended last week substantially higher ahead of the US President's social media intervention on Sunday.

On Sunday, President Trump tweeted that he would raise import taxes on $200 billion in Chinese products to 25% from 10% as of Friday.

Even with the new threat of escalation, another round of trade talks between the two countries are scheduled for later this week.

There was no immediate reaction from China about Trump's announcement.

Goldman Sachs doubled the odds of auto tariffs are coming this year to 20, and lessened the odds it gives to a free trade agreement between the U.S., Canada and Mexico. That America imports more than it exports is not the same thing as "losing" money, and a tariff on foreign goods is a tax paid for by US consumers.

Fears about a further escalation caused a slump in world stock markets towards the end of previous year.

The president is well-known for ramping up the rhetoric in trade negotiations, and has previously said he can only secure new trade deals by threatening or imposing tariffs on trading partners.

Meanwhile, Saudi Arabia, the world's biggest oil exporter, cut the cost of all crude grades to the USA for June, even as it raised prices for other regions.


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