Jumat, 10 Mei 2019

Trump, in tweet storm, says 'no need to rush' with China trade deal - CNBC

President Donald Trump said in a tweet storm Friday morning that he is in no rush to finish trade negotiations with China and that tariffs "will make our country stronger."

"Talks with China continue in a very congenial manner - there is absolutely no need to rush," the president said in one tweet.

He also took a shot at former Vice President Joe Biden, the front-runner in the race for the Democratic presidential nomination in the 2020 election.

Stock futures fell following the tweets, including Dow Jones Industrial Average futures, which dropped 150 points.

The tweets came hours after the U.S. increased tariffs on $200 billion of Chinese products from 10% to 25%. China's Commerce Ministry said immediately after the midnight deadline for the tariff hike that it would retaliate against the American move.

Traders were hopeful the U.S. and China would be able to make a resolution before the tariffs went into place on Friday. Chinese Vice Premier Liu He met with top U.S. trade officials Thursday evening in Washington, a short time before the tariffs were set to hike.

Trade talks are set to continue on Friday despite the tariff increase.

"This evening, (United States Trade Representative Robert Lighthizer) and (Treasury Secretary Steven Mnuchin) met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR," White House deputy press secretary Judd Deere said in a statement Thursday evening.

Trump said in his tweets that in addition to hiking tariffs he will continue to negotiate with China in hopes that they do not again to to "redo" a deal. That referred to his earlier assertion that China had backtracked on nearly all aspects of the trade deal.

Stock market futures danced as Trump tweeted Friday morning. Trump deleted the original tweets, including the one that referenced 'no need to rush,' but then repeated them, adding to the market volatility.

The White House could not be reached for comment on why the tweets were edited.

Trump later in the tweet rant defended the tariffs saying that "tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind."

After a troubling week for stocks, where the Dow Jones Industrial Average has lost more than 650 points and the S&P 500 has lost about 2.5%, all the three major indexes are set to open lower on Friday.

Here is Trump's full tweet storm:

Correction: An earlier version misstated the new tariff percentage on Chinese goods. It is 25%.

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https://www.cnbc.com/2019/05/10/trump-signals-he-could-stick-with-china-tariffs-no-need-to-rush.html

2019-05-10 12:52:35Z
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Trump, in tweet storm, says 'no need to rush' with China trade deal - CNBC

President Donald Trump said in a tweet storm Friday morning that he is in no rush to finish trade negotiations with China and that tariffs "will make our country stronger."

"Talks with China continue in a very congenial manner - there is absolutely no need to rush," the president said in the tweet.

Stock futures fell following the tweet and Dow Jones Industrial Average futures were last down more than 100 points.

The tweets come just hours after the 12:01 E.T. deadline where U.S. increased Chinese tariffs, from 10% to 20%, on $200 billion of Chinese products. China's Commerce Ministry said immediately after the midnight deadline for the tariff hike that it would retaliate against the American move.

Traders were hopeful the U.S. and China would be able to make a resolution before the tariffs went into place on Friday morning. Chinese Vice Premier Liu He met with top U.S. trade officials Thursday evening in Washington, a short time before the tariffs were set to hike.

Trade talks are set to continue on Friday despite the tariff increase.

"This evening, (United States Trade Representative Robert Lighthizer) and (Treasury Secretary Steven Mnuchin) met with President Trump to discuss the ongoing trade negotiations with China. The Ambassador and Secretary then had a working dinner with Vice Premier Liu He, and agreed to continue discussions tomorrow morning at USTR," White House deputy press secretary Judd Deere said in a statement Thursday evening.

Trump said in his tweets that in addition to hiking tariffs he will continue to negotiate with China in hopes that they do not again to to "redo" a deal. The president is referencing the fact that China backtracked on nearly all aspects of the trade deal.

Stock market futures danced as Trump tweeted Friday morning. Trump deleted the original tweets, including the one that referenced 'no need to rush,' but then repeated them, adding to the market volatility.

The White House could not be reached for comment on why the tweets were edited.

Trump later in the tweet rant defended the tariffs saying that "tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind."

After a troubling week for stocks, where the Dow Jones Industrial Average has lost more than 650 points and the S&P 500 has lost about 2.5%, all the three major indexes are set to open lower on Friday.

Here is Trump's full tweet storm:

This is a developing story. Check back for updates.

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https://www.cnbc.com/2019/05/10/trump-signals-he-could-stick-with-china-tariffs-no-need-to-rush.html

2019-05-10 12:32:50Z
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Trump heats up yet another global crisis by escalating China trade war - CNN

The sharp escalation could rattle investors and is the latest manifestation of the building superpower conflict across the Pacific. It will stoke new concern about the President's unapologetically unpredictable statesmanship.
Trump's new tariff threat could make iPhones, toys and shoes more expensive
The confrontation comes at a time when anxiety is already growing over Trump's stewardship of several other foreign policy crises, including with Iran, North Korea and Venezuela.
The US imposed new tariffs on a further $200 billion in Chinese goods following a midnight deadline and after the President accused Beijing of backtracking on a deal between the world's two largest economies.
It's possible that the gambit could work as negotiators from the two sides are meeting again in Washington on Friday. But the fear will be that the US and China are now heading for a prolonged showdown that could hurt the world economy.
Trump said on Friday that there was no rush to reach a deal since tariffs of up to 25% were now "being paid" on some of China's exports to the US.
"Tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind," Trump tweeted.
It is true that raised duties could dampen demand for Chinese goods, but it is American shoppers who end up paying the costs of higher tariffs.
Trump's tactic reflects his belief that the strong US economy gives him leeway to inflict pain on China's products, workers and consumers and will force its leaders to back down and make fresh concessions.
It's a classic move from a former real estate tycoon who preaches the art of the deal, often raises the stakes at the last minute and says he is always ready to walk away from the table.
But the new tariff hike is sure to draw reprisals from China, barring an overtime deal on Friday, that could rebound against the President and US consumers -- especially in the agricultural and industrial heartlands of the Midwest.
The China showdown has been building for months, like the other current foreign policy dramas, does not come as a sudden surprise.
Trump has been complaining about China's economic practices and the Sino-US trade deficit for decades -- since long before he became a politician, and it's possible to draw a line between his latest move and the 2016 campaign when he accused Beijing of "raping" US workers.
Presidents reap what they sow in foreign policy, even if it takes time for initial decisions made early in their terms to reshape the world.
But the bill may be becoming due for Trump's unorthodox style.
The President often treats foreign policy as an extension of his wild, unpredictable character that abhors restraints, has little appreciation for history and lives in the moment. He says he's the master deal maker, but he's more of a destroyer than a builder on the world stage.
He loves splashy headlines, defying the wisdom of diplomatic sages, the spotlight of one-on-one summits, jabbing allies and using tyrants as pen pals.
He enjoys wielding a big stick but doesn't want to get into foreign quagmires. He disdains long-thought-out strategies, hates global organizations and doesn't sweat details.
The current dramas have all been exacerbated by the President's shoot-from-the-lip interventions and his tendency to reject traditional diplomatic practice.
He has, for example, never ruled out military action in Venezuela -- as unlikely as that seems -- after a US-backed effort to overthrow the government of Nicolas Maduro fizzled in recent weeks and left White House policy in disarray.
While accusing Xi Jinping's government of moving the goalposts in trade talks, he praised the Chinese leader for sending him a "beautiful letter," easing investor fears after markets dipped into a two-day Trump-initiated nosedive.
Trump has also sent contradictory signals to Iran and North Korea, leaving US strategy opaque, contributing to uncertainty -- never a desirable state of affairs in geopolitics.
Foreign diplomats say Trump's impulsive style makes it almost impossible to predict American policy -- a factor that is adding to global instability.
Often, Trump seems to be placating a slice of his domestic base rather than playing diplomatic chess.
His policy on China emerged from a hardcore campaign message about Beijing's trade policies.
His synthesis of Israel policy with Prime Minister Benjamin Netanyahu's right-wing coalition is often seen as a play for US evangelical voters.
His denunciations of Maduro's socialism mirror his 2020 campaign attacks on progressive Democrats.
In many cases Trump's policies are contradictory: He is trying to kill a nuclear deal with Iran while attempting to reach another with North Korea.
And there are increasing indications that US strategies, especially toward Iran and Venezuela, are being directed by national security adviser John Bolton, who has a long history of support for militaristic and regime change solutions.
Trump, who hates it when his subordinates steal his thunder, shot down that idea on Thursday.
"He has strong views on things, but that's OK. I actually temper John, which is pretty amazing isn't it?" the President said.

A slide to war with Iran?

The US withdrawal from the Obama administration's international Iran nuclear deal fit all the requirements of Trump foreign policy.
It let him take a swipe at his predecessor. It was hugely popular in the GOP. And it created a headline and angered US allies, encapsulating Trump's "America First" philosophy.
But the consequences of the decision are becoming clear in a sudden escalation of tensions that has raised fears that the US and the Islamic Republic are locked into a slide to war.
Trump's maximum-pressure strategy of punishing economic sanctions and directly targeting Iran's clerical rulers is regime change in all but name.
Iran is now threatening to withdraw from aspects of the nuclear deal, possibly to pressure European nations who are still signed up, to force them to do more to mitigate the pain of US sanctions -- including an effort to eradicate Iran's oil exports.
As part of a policy that is seen as the brainchild of Bolton -- an Iran hawk -- the administration sent an aircraft carrier strike force, along with some heavy bombers, to the region this week.
Secretary of State Mike Pompeo ditched talks with German Chancellor Angela Merkel to dash to Baghdad for meetings with Iraqi officials, citing yet-to-be-released intelligence that had raised concerns Tehran could target US troops or facilities.
Pompeo cranked up the pressure yet again on Thursday.
"We do not seek war. But Iran's forty years of killing American soldiers, attacking American facilities and taking American hostages is a constant reminder that we must defend ourselves," Pompeo said in a statement.
The sudden activity and administration messaging about what it calls "Iran's expansionist policy" have led some observers to compare the strategy to the Bush administration's march to war with Iraq.
Brian Hook, the US special representative for Iran, told CNN's Wolf Blitzer that Trump wanted to force Tehran to change its behavior.
"We need to restore deterrence against Iran's regional aggressions," he said.
But as the last two decades have shown, Washington's sense of its own power to shape events in the Middle East is often disastrously exaggerated. And its perceptions of how adversaries interpret its pressure are often wrong. It's not clear that Trump's team has learned that lesson yet.
Obama's Iran deal halted Tehran's uranium-enriching centrifuges, freezing the breakout time to a nuclear weapon and postponing a US decision on military action that could destabilize an already shattered region and shock the world economy.
All that now seems back on the table.
"I think there are increasing risks of collision between us and the Iranians," William Burns, a retired US senior diplomat, told CNN's Kate Bolduan on Thursday.
"The Trump administration is making a very risky bet. That is that you make coercive diplomacy work when it is all about coercion and not very much at all about diplomacy."
"You are relying on maximum pressure but not connecting it, as far as I can see, to either realistic aims or any channels of diplomatic communication," he said.
Trump offered a hint Thursday that his hard line was designed to force Iran to negotiate a better deal -- encompassing its missile program and what the US says is malign regional activity.
"They should call, and if they do, we're open to talk to them," Trump said. But since the US strategy appears to hinge on Iranian capitulation, it is unclear why Tehran would pick up the phone.
Which is why many experts fear what will happen next.

Not yet taking Kim's bait

Kim Jong Un is getting antsy.
A rising drumbeat of short-range missile tests and the suspension of cooperation with US efforts to find the remains of soldiers killed in North Korea nearly 70 years ago are beginning to erode the meager payoff Trump forged with his stunning engagement of one of the world's most brutal tyrants.
Kim's impatience looks like a classic North Korean tantrum following the failure of his second summit with Trump in Vietnam earlier this year.
Trump's rationale is that after decades of failed US diplomacy, his personal connection with Kim can prompt a historic breakthrough.
Yet after offering Kim the concession of two face-to-face meetings, there has been no progress toward denuclearizing the Korean Peninsula.
The impasse is putting Trump's strategy, which went from warning of "fire and fury" to declaring that he and Kim fell in love, under intense scrutiny.
But Trump is also not taking Kim's latest bait -- a sign that his gullibility revealed in their first summit in Singapore last year might be less of a factor.
"What appears to be happening is North Korea is testing the United States, trying to push them towards some sort of negotiation, reopening the talks," Amy Pope, a former senior Obama administration official, said Thursday on CNN.
"The President is right not to kowtow to that and to accept that as an appropriate way of negotiating, but at the same time there is a more serious question that undergirds all of this.
"What is the President's strategy on North Korea? What is the diplomatic negotiating going into it behind the scenes?"
Trump is seeking to keep his channel to Kim open, but the fear is that the North Korean leader will further escalate tensions if he does not get the economic concessions he seeks.
If he goes back to long-range missile tests or nuclear detonations, the prospect of a horrific war on the peninsula could quickly return.
"Nobody's happy about it, but we are taking a good look and we'll see," Trump said when asked about missile tests overseen by Kim this week.
As for the future: "We will see what happens."

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https://www.cnn.com/2019/05/10/politics/donald-trump-china-north-korea-venezuela-iran/index.html

2019-05-10 11:14:00Z
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Here's why global stocks aren't sinking despite the US tariff hike - CNBC

A global stock market sell-off started to ease on Friday despite the U.S. fulfilling a promise to ramp up tariffs on Chinese goods.

The U.S. hiked tariffs from 10% to 25% on $200 billion worth of Chinese goods at 12:01 a.m. ET Friday. In response, Beijing said it "deeply regrets" the tariff hike and would take countermeasures — though no specifics were provided.

Markets across the globe initially fell overnight but were quick to bounce back and trade higher. In Asia, mainland Chinese stocks jumped with the Shanghai composite rising more than 3%. In Europe, the pan-European Stoxx 600 traded nearly 1% higher in early deals with the German DAX up by the same amount. Stateside, Dow futures initially slipped and pointed to nearly triple-digit losses at the open, but soon recovered.

Uncertainty over trade talks will linger, but some analysts believe investors are still optimistic that the world's two-largest economies will avoid a full-blown trade war.

"Investors seemingly continue to try to cling to hope that policymakers on both sides opt to deescalate," Deutsche Bank's research strategist Jim Reid said in a note Friday.

Reid noted that President Donald Trump told reporters Thursday that a "deal is still possible," and that he had received a "beautiful letter" from Chinese President Xi Jinping.

Global stock markets have seen heavy selling this week as the tension between Washington and Beijing escalated. The Dow Jones Industrial Average has fallen more than 650 points this week, while the S&P 500 has lost about 2.5%. Global equities have seen outflows of $20.5 billion in the past week, according to new research by Bank of America Merrill Lynch said on Friday.

The recovery could also be due to markets already pricing in the tariff hike. The announcement on the increase initially came from Trump on Sunday, giving investors plenty of time to position assets in their portfolios. In addition to that, a number of analysts have also pointed out that the increase in tariffs from 10% to 25% will only really take effect in a few weeks and hence markets are anticipating a deal will come before that.

Goldman Sachs told clients in a note that there is still some wiggle room in the negotiations, which are still set to continue on Friday.

"We note that details in the notice implementing the tariff hike indicate that exports that have already left Chinese ports before May 10 will not be subject to the increase," said Goldman economist Jan Hatzius.

"This creates an unofficial window, potentially lasting a couple of weeks, in which negotiations can continue and generates a 'soft' deadline to reach a deal ... This also leaves an opportunity for the two sides to reach an agreement in the next couple of weeks, though challenges remain," he added.

Russ Mould, an investment director at London-based stockbroker AJ Bell, said the market moves could be down to investors now having real facts with the formal tariff hike, which would dispel any speculation earlier in the week.

He also explained that a China retaliation will hurt U.S. businesses and consumers and have a negative impact on the economy. He added that the finger of blame would then point to Trump for being "too aggressive," noting that he cannot afford to let this happen ahead of elections next year.

"Investors could be betting that China's retaliation could force Trump to back down and come to an amicable conclusion," Mould said in his note.

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https://www.cnbc.com/2019/05/10/stock-markets-why-equities-arent-sinking-despite-the-us-tariff-hike.html

2019-05-10 09:10:25Z
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U.S.-China Trade War Worsens, but Investors Bet on a Deal - The New York Times

Trade war? No problem.

Global markets largely rose on Friday just hours after President Trump escalated his trade war with China. The stock market in China, which sometimes gets a lift from state-run companies looking to buoy the market, led the global rise.

Futures that allow investors to bet on the performance of stocks in the United States indicated many believed Wall Street would open higher on Friday morning.

Early Friday, Mr. Trump raised tariffs to 25 percent from 10 percent on Chinese imports that are worth about $200 billion a year. He said the increase came in response to Chinese officials attempting to “renegotiate” a pact aimed at calling a trade war truce. China said it would respond with unspecified countermeasures.

Still, many investors believe the two sides can reach a deal, especially since the Trump administration effectively delayed the full brunt of the tariff increase. The Trump administration specified that it will collect the tariffs only on goods that leave China starting on Friday. That means they would not hit Chinese goods already on ships destined for the United States, though they would more immediately impact goods that are flown in.

“Our base case remains that the U.S. and China will eventually reach some kind of accord,” Mark Haefele, global chief investment officer for the Swiss bank UBS, said in a research note. “Both the U.S. and China have strong incentives to reach a deal and we do not expect a complete breakdown in negotiations.”

In China, the Shanghai Composite Index rose 3.1 percent, while the Shenzhen Composite Index rose 3.8 percent.

The Hang Seng Index in Hong Kong rose 0.8 percent.

In Japan, the Nikkei 225 index fell 0.3 percent after disappointing wage data there.

South Korea’s Kospi index rose 0.3 percent.

European markets opened modestly higher. In Germany, the DAX index was up 1 percent.

The CAC 40 index in Paris opened 0.9 percent higher.

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https://www.nytimes.com/2019/05/10/business/global-markets.html

2019-05-10 08:32:03Z
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Trump just raised tariffs on Chinese goods. China says it will hit back - CNN

The Trump administration raised tariffs on $200 billion worth of Chinese imports from 10% to 25% at 12:01 a.m. ET on Friday, according to China's Ministry of Commerce.
Beijing responded just minutes after the tariffs went into effect.
"China expresses deep regret over the development and will have to take necessary countermeasures," the Ministry of Commerce said in a statement Friday afternoon. "We hope the United States will meet us halfway, and work with us to resolve existing issues through cooperation and consultation."
Reactions in Asia markets were mixed.
Having started the day in positive territory, Japan's Nikkei Index fell nearly 1% in afternoon trading. The Shanghai Composite Index rose more than 2% and Hong Kong's Hang Seng Index was up around 1%.
Trump's new tariff threat could make iPhones, toys and shoes more expensive
A Chinese delegation led by Beijing's top trade negotiator Vice Premier Liu He arrived in Washington on Thursday for the latest round of trade talks.
Under the current circumstances, Liu said he "hopes to engage in rational and candid exchanges with the US side," Chinese state media outlet Xinhua reported.
Liu added that China believes raising tariffs is not a solution to the problems and is harmful to China, to the United States and to the whole world.
Trump's surprise move to increase tariffs startled US businesses. Importers received just five days' notice about the sudden rise in penalties.
"The tariff increase inflicts significant harm on US industry, farmers and consumers," said Jacob Parker, vice president of the US-China Business Council, a trade group that represents American companies' interests in China.
"It will decrease the competitiveness of American companies, reduce the efficiency of their global supply chains, and reverberate through the US economy. Pure and simple, this is a tax on the American consumer," he added.
The American Apparel and Footwear Association estimated that a 25% tariff on apparel imports would increase costs for a family of four by $500 a year.
The higher tariffs will be applied to relevant US-bound goods exported from China on or after Friday, according to a notice from the US Federal Register.
Talks between the two sides will resume in Washington on Friday, hours after the tariffs took effect.

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https://www.cnn.com/2019/05/10/business/china-us-tariffs-trade/index.html

2019-05-10 08:11:00Z
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Kamis, 09 Mei 2019

Tense U.S.-China Trade Talks Underway With Threat Of Tariffs Looming - NPR

A shopper browses digital products at a market in Beijing. Trade tensions between China and the United States have grown significantly this week, after the Trump administration accused Beijing of backing down from commitments it had made in trade negotiations. Andy Wong/AP hide caption

toggle caption
Andy Wong/AP

The Trump administration is poised to raise tariffs on $200 billion in imported products from China at 12:01 a.m. Friday, significantly raising the stakes in the ongoing trade dispute with Beijing.

The clock is ticking as Beijing officials are in Washington, attempting to reach an agreement that would address U.S. concerns about Chinese business practices, including intellectual property theft and state-subsidized companies.

Until last weekend, the two countries appeared to be heading toward an accord. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer indicated that a deal was in sight.

But U.S. officials said this week that China had backtracked on commitments it had made earlier. It didn't specify what the commitments were.

As a result, the Trump administration said it would increase existing tariffs on $200 billion worth of consumer and business products to 25% from 10%.

It wasn't the first time that Trump said tariffs would rise. The president threatened to increase tariffs in January and March, but the administration held off both times to give negotiators more time to make a deal.

Financial markets have fallen this week in response to the escalation of the trade dispute and the prospect of higher tariffs. The S&P 500 is on track for its biggest decline of the year. The Dow fell 138.97 points Thursday.

The tariffs are imposed when the products are brought into the United States, which means the cost is borne by importers, who can either pay it themselves or pass it on to customers. In some cases, Chinese exporters may also be persuaded to lower their prices before the goods are shipped.

Trump recently said the United States can take in $120 billion a year in tariffs, "paid for mostly by China," but economists say much of it will be paid by U.S. businesses and consumers.

The tariffs will be applied only to goods shipped after Friday. That will provide some relief to U.S. businesses that have orders in transit. And there still is more time to reach a deal; negotiators are meeting in an attempt to do that.

Wednesday, Trump seemed to hold out hope that an agreement could still be reached to prevent the tariff hikes, noting that he had received a "beautiful" letter from Chinese President Xi Jinping.

"I have no idea what's going to happen," Trump said.

In China, some economists said the trade war would slow the country's economic growth and the government may need more economic stimulus to soften the blow.

The Chinese government controls media in the country and has been steadily working to prevent the public from seeing news that Trump threatened more tariffs by removing content from social media sites.

"I don't know much about what's going on," a 45-year-old man named Jo Jiun Hwei told NPR this week. "I think it's the American president's fault. That's what they're saying on the news at least."

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https://www.npr.org/2019/05/09/721893765/tense-u-s-china-trade-talks-underway-with-threat-of-tariffs-looming

2019-05-10 00:02:00Z
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