Market Crashes as Trump Threatens More Tariffs After China Trade Deal Flops

Trump threatens to raise Chinese tariffs to 25% this week

The 10-percent tax on some $200 billion of non-tech-related goods will now go up to 25-percent.

China's foreign ministry said that officials were still planning to travel to the usa for the next round of talks - but was unable to confirm when amid signs that a delay is now being considered.

Mr Trump on Sunday warned he would lift tariffs on $US200 billion ($287 billion) worth of Chinese goods from 10 per cent to 25 per cent by Friday, reactivating a threat he delayed indefinitely months ago. 325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%.

China has confirmed that a delegation will travel to Washington to take part in the talks starting Wednesday.

"The prospect of higher and broader tariffs was one factor that drove markets down in the fourth quarter of 2018, but markets have since come to believe that some sort of deal was imminent to avoid them", Chovanec said.

"After weeks of talks and suggestions from the USA administration that a deal was close, the sudden ramping up of trade tensions caught investors by surprise", Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said in a note.

Shares tumbled in Asia early Monday after President Donald Trump threatened in a tweet to impose more tariffs on China.

The revived tensions over trade pulled oil prices lower.

"President Trump threatens China while he seemingly doesn't understand how tariffs work", Hu tweeted.

One source told CNBC, Chinese Vice Premier Liu He will likely cancel the trip he'd planned for himself and a 100-person delegation ahead of the resumption of talks originally slated to begin this Friday.

Trump threatened to ratchet up existing import tariffs of 10% on $200bn (£153bn) of Chinese goods sold in the U.S. that have been in place for nearly a year to 25%. Trump's threats raise the risk of a prolonged fight between the world's two largest economies. Widespread losses of more than 1% are being seen in Asian stocks, United States stock futures and in Chinese commodity futures.

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

"The threat to increase tariffs is a reminder that the trade negotiations have a high degree of uncertainty", Max Zenglein, head of the economics program at Berlin's Mercator Institute for China Studies (MERICS), told DW.

Trump's tweets may have added to the hurdles.

So, as Trump is sticking it to Beijing even harder than he already has, it is perhaps fitting that he is winning approval for the move from the leader of the opposition party in the U.S. Senate. US equity futures fell more than 2 percent and stocks across trade-reliant Asia tumbled, with China's main indexes plunging 5 percent.

There was no immediate reaction from China about Trump's announcement. Bond prices rose sharply, sending yields lower, and safe-play stocks like utilities, real estate companies and makers of consumer products held up much better than the rest of the market.

The roots of the dispute extend to Trump's "America first" project to protect the US' position as the world's leading economy, while encouraging businesses to hire more workers in America and to manufacture their products there.

The US officials had previously said that a deal could be reached by Friday.

Trump said on Sunday he would raise tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon.

Related News:



Most liked

Boston Bruins Add Grit Back To The Line-UP
That's why they shouldn't have the review on as much as they do. "It's only a matter of time before these guys score goals". Going 7-for-16 in their first round victory over the Toronto Maple Leafs, the Bruins power play was a key for them.

Van Dijk and Miedema named PFA Players of the year
He also became the second Man City player to win the award in a successive year, after Leroy Sane won it last season. Though Dijk has been proven to be worthy as he brought assertiveness and confidence to the club.

Eric Bailly out for the rest of the season
However, any suitors will surely be wary of signing Bailly given his string of injury problems at Manchester United . The defender picked up the injury during the Red Devils' 1-1 draw with Chelsea in the Premier League on Sunday.

FAA Prohibits US Air Operators from Flying Below 26,000ft Over Venezuela
The violent street battles that erupted in parts of Caracas were the most serious challenge yet to Maduro's rule. Venezuela's Foreign Minister Jorge Arreaza accused Washington of helping Guaido orchestrate the uprising.

Google Pixel 3a and 3a XL pass Bluetooth certification
However, Pichai partially dodged the question, saying that Google is in its "early days" but its "commitment is strong". Based on the latest rumours, Google will debut a pair of brand-new Pixel smartphones alongside Android Q next week.

Sri Lanka bans all face coverings including burqa after Easter Sunday blasts
Most of the explosions were detonated by suicide bombers , according to Sri Lanka's junior defense minister Ruwan Wijewardene. While previously unseen in Sri Lanka, the niqab has grown in popularity in the last 10 years after the country's civil war.

Army Veteran Arrested, Accused of Plotting California Terror Attack
Federal prosecutors said Monday that Mark Domingo was arrested for planning to plant a bomb at a Nazi rally Sunday in Long Beach. After giving the "go ahead" last Thursday, the undercover officials delivered the fake IEDs to Domingo on Friday night.

Is Meghan Markle in Labor? Ambulance Spotted Near Frogmore Cottage
For months now, rumors have been flying that Prince William cheated on Catherine , Duchess of Cambridge . Kensington Palace announced on April 24 that the couple will make a visit to North Wales on May 8.

Manhunt in Tennessee after 5 bodies found in rural homes
According to the TBI four bodies were originally found in a home on Charles Brown Road Saturday Evening in Westmoreland. A number of law enforcement agencies had been searching for Cummins, saying earlier that he could be armed and risky .

Liverpool's Virgil van Dijk named PFA Players’ Player of the Year
As many as six Manchester City players made the list which also had four players from Premier League title chasers Liverpool. Raheem Sterling has been shortlisted for both PFA Young Player of the Year and Player of the Year awards.

Josh Rosen Traded To Dolphins; Cardinals Take Andy Isabella
The Cardinals sent quarterback Josh Rosen , the 10th overall pick just a year ago , to Miami for the No. 62 pick overall and a fifth-round pick in 2020.

Britain's Prince Louis a baby no more, turning 1 on Tuesday
In March, Kate revealed that Louis, then about 11 months old, was an active child who enjoyed "bombing around" on a walker. The new photos of Louis come after his great grandmother, the Queen, celebrated her 93rd birthday on Easter Sunday.

Jurgen Klopp Reacts To Manchester United Losing To Manchester City
Hazard has scored 19 goals in all competitions - matching his most productive season yet in a Chelsea shirt. City then comfortably saw out the game, the only downside being an injury to Fernandinho .

Earthquakes kill 11 in Philippines
Rescuers have drilled a large tube to blow in oygen into the wreckage of Chuzon supermarket to help those trapped to breathe. According to local media , people in the central Philippines scrambled out of buildings and houses after the quake was felt.

Trump threatens AGAIN to close part of the border
The American soldiers allowed themselves to be disarmed, according to reports , after the Mexican soldiers held them at gunpoint. Mexico must apprehend the remainder or we will be forced to close that section of the Border & call up the Military.