VideoA stock sell-off continued on Tuesday as investors continued to worry that trade talks between the USA and China are in danger of falling apart after words by the Trump administration this week appeared to threaten additional tariffs.
Trump's comments underscore the political pressure he's under to reach a deal with China, with his own party fractured over the merits of tariffs and Democrats looking to blame the president if the trade war seriously damages the USA economy.
Trump threatened to impose new tariffs on China last weekend if a trade pact is not agreed upon by Friday, claiming that Beijing is trying to renegotiate already agreed upon issues.
The stock market is attempting a rebound following two consecutive days of sharp losses on renewed fears over the trade war between the United States and China. "They're going to sit down tomorrow, and we'll see what happens from there", she said. The president also said he was considering a further 25 percent tariff on $325 billion of other Chinese goods - essentially targeting all products imported to the USA from China.
An announcement Thursday by China's Commerce Ministry that Beijing will retaliate pushed shares lower. But he was bullish that some sort of deal will get done because both Trump and President Xi Jinping have much to gain. Chuck Schumer tweeted out his support for Trump's pugnacious approach to China's renege on Sunday, and he's hardly the only Democrat unhappy with China's trade policies.
The US accuses China of resorting to predatory tactics in a drive to give Chinese companies an edge in advanced technologies such as artificial intelligence, robotics and electric vehicles.
On Sunday, Trump threatened to ramp up levies on $200 billion worth of Chinese goods, increasing the rate from 10% to 25%, and set a 25% tariff on $325 billion of now untaxed goods, including many consumer products.
But according to reports, United States officials have become frustrated by China's attempt to reword the draft agreement in its final stages. It said the decision to send Vice Premier Liu He to Washington suggests "China doesn't want the talks to break".
"I still think ultimately we do end up getting a deal because it's too important for both economies". "These taxes are not paid by foreign nations, and they result in higher costs that are simply passed on to the American consumer". The United States also wants other changes including cuts in subsidies to Chinese industry.
'Weak growth in Chinese exports to the USA will also be concerning to Chinese officials, particularly amid a potential escalation in the trade war, ' said Nick Marro, an analyst at The Economist Intelligence Unit. RBC analyst Mitch Steves told Business Insider: "A major concern here, the products would be deemed mission-critical, and the us would prevent shipments to China, or tax them heavily (a large buyer of GPUs)".