Chinese Tariffs Will Raise to 25% Tomorrow Unless Talks Progress

Wall Street initially tumbled following US President Donald Trump's shock tariff threat against China

RICHARD DREW APWall Street initially tumbled following US President Donald Trump's shock tariff threat against China

"If you don't have specific commitments, backed up with enforcement, you don't have anything", said Clete Willems, a former senior White House trade official, who starts as a partner at Akin Gump next month. "A variety of plans are in place, such as countermeasures for any tariff rise, and favourable policies to minimise losses for Chinese enterprises", the Global Times, a tabloid published by the ruling Communist Party's People's Daily, said in an editorial.

"We need a positive resolution of this ongoing tariff dispute, not further escalation of tensions", he said in a release posted on the ASA web site.

The sudden rupture has roiled global stock markets this week, inflaming anxieties among exporters, markets and industries that had been lulled into optimism in recent months as both sides steadily announced progress in their efforts to end the trade war Trump started previous year.

The two countries are sparring over US allegations that China steals technology and pressures American companies into handing over trade secrets, part of an aggressive campaign to turn Chinese companies into world leaders in robotics, electric cars and other advanced industries.

Financial markets turned volatile this week after President Donald Trump threatened to impose more tariffs on Chinese goods, a threat that is set to become reality early Friday. Various media accounts indicated the Chinese side had balked at United States demands that Beijing codify the seven-chapter agreement in Chinese law and publish the text of the agreement or indeed had sought to weaken most of its core elements. Reducing the gap is a key part of Mr Trump's trade policies.

Trump told supporters at a rally in Florida on Wednesday that China "broke the deal", and vowed not to back down on imposing new tariffs on Chinese imports unless Beijing "stops cheating our workers".

Bond prices rose. The yield on the 10 year Treasury fell to 2.44%.

Market strategists at Goldman Sachs appear to agree with Divney's approach, should trade talks break down. Their sensitivity has its origins in the treaties that Western powers, including the United States, forced a feeble Qing Dynasty to accept following the First Opium War in the 1840s.

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Russian Federation has voiced support for Iran - but is not an oil customer and carries little weight in the global economy. The initial two steps announced by President Hassan Rouhani are at the very low end of the scale of available measures.

The tariffs would target chemicals, building materials, furniture and some consumer electronics among other goods.

It has also strategically targeted products made in Republican districts, and goods that can be purchased elsewhere, like soybeans.

USA government and private sector sources previously told Reuters that a draft trade agreement was riddled with reversals by China that undermined core U.S. demands. "Once again, the two countries, and indeed, the entire world's economy will be forced into a crisis mode that will likely inflict enormous losses on many individual companies and many thousands of workers and farmers in both countries".

The Dow Jones Industrial Average inched up 2.24 points, or less than 0.1%, to 25,967.33.

The S&P 500 fell 4 points, or 0.2%, to 2,879.

The US-China trade war has had a knock-on effect on other countries, and the global economy.

"There's still is uncertainty out there on the three possible outcomes: We get a trade deal out of this in the short term, we get something out of it in the long term and the U.S. and China keep talking, or we get no trade deal", said Jeff Zipper, managing director at U.S. Bank Private Wealth Management.

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