Trump says he will meet China's Xi at G20 next month

Lloyd Doyle
May 14, 2019

In retaliation, Beijing announced on Monday that it would raise tariffs on about $60 billion worth of American goods. Officials also said they were preparing to expand tariffs to cover another $300 billion of goods. Chinese officials said they hoped that the US side would meet them halfway, describing the standoff as just a "setback".

The prospect that the United States and China were spiraling into a no-holds-barred dispute that could derail the global economy has rattled investors and led to a sharp selloff on equities markets in the past week. USA soybean futures fell to their lowest in a decade on Monday.

ENERGY: U.S. benchmark crude oil added 1 cent to $61.67 per barrel in electronic trading on the New York Mercantile Exchange.

Trump has since defended the United States tariff hike and said he was in "absolutely no rush" to finalise a deal.

It's possible President Donald Trump's tariffs on China could help the USA secure a better trading relationship but the strategy could instead blow up in his face, according to a respected US economist.

Forecasters have warned that the US tariff hikes could set back a Chinese recovery that had appeared to be gaining traction.

Chinese foreign ministry spokesman Geng Shuang told a news briefing in Beijing that China would "never surrender to external pressure".

The US' top negotiators in trade talks with China - Treasury Secretary Steve Mnuchin and US Trade Representative Robert Lighthizer - met with China's Vice Premier Liu He on Friday, but the talks did little to bring the two sides closer. "And that'll be, I think, probably a very fruitful meeting", Trump said of XI during a White House appearance with Hungarian Prime Minister Viktor Orban.

The "points" are a reference to the percentage increase in tariffs on Chinese goods, from 4 per cent to 25 per cent, compared to a more modest tariff hike the Chinese have recently enforced in the other direction. The move affected 5,700 categories of Chinese products, including internet modems and routers. But according to Holtz-Eakin, the USA economy isn't as hot as it might look.

US officials said the Chinese negotiators have been reversing themselves on commitments made in earlier trade talks.

Trump has said he is in "no rush" to finalise a deal with China.

Here are four reasons why Holtz-Eakin, the former director of the U.S. Congressional Budget Office and current president of the American Action Forum, believes Trump's approach could backfire. They are paid by importers of Chinese goods, usually American companies or the USA -registered units of foreign companies. Brent crude, the worldwide standard, gained 24 cents to $70.86 per barrel.

The abruptness of Trump's announcement on May 5, just days before the last round of talks, about raising tariffs to 25% made companies see doing business in China as more uncertain, said Jake Parker, vice president of the U.S.

According to the USDA, U.S. agricultural exports to China reached $23.8 billion in 2017 - or 17% of total U.S. agricultural exports.

Donald Trump, who has often pointed to a rising stock market as evidence of his economic prowess, is now willing to put Wall Street at risk if it means winning over Main Street. Among swing states - increasingly critical in presidential elections - OH saw the most significant impact.

Other reports by Iphone Fresh

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