Chinese and USA officials are struggling to agree on the schedule for a planned meeting this month to continue trade talks after Washington rejected Beijing's request to delay tariffs that took effect over the weekend, according to people familiar with the discussions.
The world's two biggest economies have been embroiled in a bruising year-long trade war which escalated further on Sunday when Washington moved ahead with fresh levy hikes which Beijing had promised to match. We will keep it that way! USA equity futures fell on the news, touching their lows for the day.
"The Trump administration has shot Americans in the foot".
China said Tuesday that it's not the source of the fentanyl that's killing Americans, contrary to President Donald Trump's recent tweets blaming China for the drug deaths. China has stood firm and signs point to Beijing simply waiting Trump out regarding a new trade deal, hoping he loses the 2020 election.
Wall Street is treading carefully on the first day of trading after President Donald Trump's new tariffs on Chinese goods have taken effect. Companies have already reduced investment spending, and exports have dropped against a backdrop of slower global growth.
Major developments surrounding the trade conflict are likely to continue to drive crude oil prices in the next couple of days.
From Sunday, the Trump administration started collecting 15% tariff on Chinese goods worth $125 billion. "This is not how you reach a meaningful trade agreement."Richard Trumka, president of AFL-CIO, said on "Fox News Sunday" that taking on China is a good thing, but that the president has "done it the wrong way" with his tariff strategy".
Xi Jinping's government lodged a complaint against the Trump administration with the World Trade Organization on Monday, which was a holiday in the U.S. They claim that they are hurting China but, in reality, they are hurting us. That study was done before Trump raised the September 1 and December 15 tariffs to 15% from 10%.
But he said reality could begin to bite with Sunday's new round of tariffs.
Some retailers may eat the cost of the tariffs.
Beijing responded immediately with tariffs ranging from five to ten percent on $75 billion-worth of American imports, mostly affecting products that are sensitive for the U.S. agricultural sector.
The extra tariffs of five percent and 10 percent were levied on 1,717 items of a total of 5,078 products originating from the US.
Many experts also decry China's decision to fight fire with fire, by imposing tariffs on US goods imported into China, also without the WTO's approval.