In this file:
· US hikes tariffs as China talks are poised for second day
· U.S. Escalates Trade War Amid Negotiations, China Says it Will Hit Back
· Trump Sees ‘No Need to Rush’ China Talks as Trade War Escalates
· First day of U.S.-China trade talks ends; Trump's tariff hike set to take effect
· President Trump Says U.S. Will Buy American Farmers' Crops to Offset China Trade Losses
· Higher China tariffs could cost Americans $767 per year
· Leading Agriculture Commodities Oppose Additional Tariffs on Chinese Goods
US hikes tariffs as China talks are poised for second day
via The Hindu Business Line - May 10, 2019
The new tariffs that took effect at 12:01 am Washington time on Friday raise the import duties from 10 per cent to 25 per cent on more than 5,700 different product categories from China
The United States (US) hiked tariffs on more than $200 billion in goods from China on Friday in the most dramatic step yet of Donald Trumps push to extract trade concessions, deepening a conflict that has roiled financial markets and cast a shadow over the global economy.
China immediately said in a statement it is forced to retaliate, but did not specify how. The move came after discussions between Xi Jinping’s top trade envoy and his US counterparts in Washington made little progress on Thursday, with the mood around them downbeat, according to people familiar with the talks. The negotiations were due to resume on Friday morning Washington time.
Ahead of the talks on Thursday, Trump also said the US would go ahead with preparations to impose 25 per cent tariffs on a further $325 billion in goods from China, raising the prospect of all of Chinas goods exports to the US -- which were worth about $540 billion last year -- being subject to new import duties.
Such a move would take weeks to deploy. But it would have significant repercussions for the US, Chinese and global economies. Economists at Moody’s Analytics said in a report this week that an all-out trade conflagration between the worlds two-largest economies risked tipping the US economy into recession by the end of 2020 just as voters go to the polls in the US
The new tariffs that took effect at 12:01 am Washington time on Friday raise the import duties from 10 per cent to 25per cent on more than 5,700 different product categories from China -- ranging from cooked vegetables to Christmas lights and high-chairs for babies.
US officials have said the new duties...
U.S. Escalates Trade War Amid Negotiations, China Says it Will Hit Back
By David Lawder and Yawen Chen, Reuters
via SUccessful Farming/Agriculture.com - 5/10/2019
WASHINGTON/BEIJING, May 10 (Reuters) - The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods amid last-ditch talks to rescue a trade deal, as U.S. President Donald Trump signaled that talks could drag on beyond this week.
In a series of early morning tweets on Friday, Trump defended his decision to raise tariffs, saying there was no need to rush into a deal and adding that the American economy would be boosted more by the levies than by an eventual deal.
But even as Beijing threatened retaliation, negotiators agreed to stay at the table in Washington for a second day, keeping alive hopes of an agreement that would remove a major threat to the global economy.
Trump, who has adopted protectionist policies as part of his "America First" agenda, issued orders for the tariff increase, saying China "broke the deal" by reneging on earlier commitments made during months of negotiations.
China's Commerce Ministry said it would take countermeasures, without elaborating.
Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin talked for 90 minutes on Thursday and were expected to resume efforts on Friday to rescue a deal that could end a 10-month trade war between the world's two largest economies.
The Commerce Ministry said negotiations were continuing, and that it "hopes the United States can meet China halfway, make joint efforts, and resolve the issue through cooperation and consultation."
With negotiations in progress, U.S. Customs and Border Protection imposed a 25% duty on more than 5,700 categories of products leaving China after 12:01 a.m. EDT (0401 GMT) on Friday.
Seaborne cargoes shipped from China before midnight were not subject to the new tax as long as they arrived in the United States prior to June 1. Those cargoes will be charged the original 10% rate.
"This delay might create an unofficial window during which the U.S. and China can continue to negotiate," investment bank Goldman Sachs wrote in a note, adding that it was a "somewhat positive sign" that talks were continuing.
Trump gave U.S. importers less than five days notice about his decision to increase the rate on the $200 billion category of goods, which now matches the rate on a prior $50 billion category of Chinese machinery and technology goods.
He has also threatened to impose new tariffs soon.
"NO GREATER THREAT TO GROWTH" ...
RETALIATE HOW? ...
WHO PAYS? ...
Trump Sees ‘No Need to Rush’ China Talks as Trade War Escalates
Tariffs rise to 25% on $200 billion tranche of Chinese goods
China pledges to retaliate, Trump tweets ‘no need to rush’
By Shawn Donnan, Jennifer Jacobs, and Ye Xie, Bloomberg
May 10, 2019
President Donald Trump boosted tariffs Friday on $200 billion in goods from China and threatened to impose more in his most dramatic steps yet to extract trade concessions, saying there’s “no need to rush” a deal even though the uncertainty is roiling markets and clouding the global economy.
China said it will be forced to retaliate, though the government didn’t immediately specify how. The moves came after discussions between made little progress Thursday, according to people familiar with the talks.
Chinese Vice Premier Liu He arrived at the U.S. Trade Representative’s office on Friday morning for a second day of talks with Trump’s top trade negotiator Robert Lighthizer and Treasury Secretary Steven Mnuchin.
“Talks with China continue in a very congenial manner -- there is absolutely no need to rush,” the U.S. president said on Twitter on Friday, before talks resumed. “In the meantime we will continue to negotiate with China in the hopes that they do not again try to redo deal!”
U.S. stocks fell for a fifth day on Friday, after Asian equities whipsawed in heavy trading.
The fresh wave of U.S. tariffs marked a sharp reversal from just last week, when U.S. officials expressed optimism that a pact was within reach. The escalation with China also signaled Trump’s willingness to risk more economic and political damage on his apparent belief that trade wars ultimately are winnable.
In one of his tweets on Friday, Trump also said “the process has begun” to impose 25% tariffs on a further $325 billion in goods from China. That raises the prospect of all of China’s goods exports to the U.S. -- worth about $540 billion last year -- being subject to new import duties...
Under Pressure ...
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First day of U.S.-China trade talks ends; Trump's tariff hike set to take effect
Jeff Mason & David Lawder, Reuters
May 9, 2019
WASHINGTON (Reuters) - Top U.S. and Chinese trade negotiators concluded the first of two days of talks on Thursday to rescue a trade deal that is close to collapsing as Washington prepares to go ahead with plans to hike tariffs on hundreds of billions of dollars of goods imported from China.
Tension between Washington and Beijing has risen after a major setback in negotiations last week when China revised a draft deal and weakened commitments to meet U.S. demands for trade reform.
President Donald Trump responded by ordering a tariff hike, and China has said it would retaliate. The 10-month-old trade war has already cost companies in both countries billions of dollars.
Chinese Vice Premier Liu He, U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin talked for 90 minutes on Thursday and were expected to resume talks on Friday. Officials did not speak to reporters as they left the talks.
In comments to Chinese state media upon arriving in Washington, Liu said that hiking tariffs “is very disadvantageous to both parties”.
“We come here this time, under pressure, which shows China’s greatest sincerity, and want to sincerely, confidently, and rationally resolve certain disagreements or differences facing China and the United States. I think there is hope,” he said.
Before they get back around the table on Friday, the United States will have increased duties on $200 billion of Chinese goods, to 25 percent from 10 percent. The duties apply to cargoes leaving China after 12:01 a.m. EDT (0401 GMT) Friday.
Consumer products, including cell phones, computers, clothing and toys, are to be especially hard hit.
Lighthizer and Mnuchin have agreed with Liu to continue trade talks on Friday morning, a White House spokesman said on Thursday. Trump met with Lighthizer and Mnuchin earlier to discuss the talks.
Trump on Thursday took aim at the $325 billion in Chinese goods that are so far untouched by the trade war, saying he was “starting ... paperwork today” to tax those with a punitive tariff of 25 percent.
Trump, who has adopted protectionist policies as part of his “America First” agenda aimed at rebalancing global trade and boosting U.S. manufacturing, accused Beijing of reneging on commitments made during months of negotiations.
“We were getting very close to a deal, then they started to renegotiate the deal. We can’t have that. We can’t have that,” Trump said at an event at the White House.
Trump said if the two sides cannot make a deal, the United States would go back to manufacturing products that China now makes. “It’ll be the old-fashioned way, the way we used to do it: We made our own product.”
U.S. stock indexes closed lower on Thursday ahead of the trade talks, though they pared losses after Trump said he had received a “beautiful” letter from Chinese President Xi Jinping. U.S. oil prices slid and U.S. Treasury yields fell as investors sought safe-haven assets.
Data released Thursday showed the U.S. goods trade deficit with China shrank to its smallest level in five years in March, which could further embolden Trump as he escalates the trade war with Beijing.
Plans by Washington to hike tariffs could cut China’s growth by 0.3 percentage points but the strengthening economy has become more resilient to external shocks, a Chinese central bank adviser said on Friday.
TENSE TALKS ...
WIDE RIFT ...
President Trump Says U.S. Will Buy American Farmers' Crops to Offset China Trade Losses
By Megan Durisin, Bloomberg
via TIME - May 10, 2019
President Donald Trump said that the U.S. will boost its purchases of domestic farm products for humanitarian aid in an effort to offset lost demand from China as trade tensions flare between the nations.
Trump said on Twitter on Friday that the U.S. will use its money from the tariffs to buy American agricultural products “in larger amounts than China ever did” and send it to “poor & starving countries” for humanitarian aid. The president indicated potential purchases of $15 billion from farmers. Soybean and grain futures held mostly steady after the announcements.
“In the meantime we will continue to negotiate with China in the hopes that they do not again try to redo deal!” Trump said on Twitter. “Our farmers will do better, faster and starving nations can now be helped.”
Soybean and grain futures plunged this week as U.S. trade talks faltered with China, the world’s top oilseed buyer, and the Asian nation vowed retaliation as the U.S. boosted tariffs on $200 billion in goods. On the Chicago Board of Trade, soybean, corn and wheat futures for July delivery were little changed at 8 a.m. local time.
In the 2017 fiscal year, the U.S. gave 3.12 million tons of foreign food aid valued at $3.62 million, according to a report from the U.S. Agency for International Development. Trump’s tweets didn’t provide details on which government agency might be involved in purchases from farmers or aid.
‘Not That Simple’ ...
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Higher China tariffs could cost Americans $767 per year
· The White House looks poised to raise tariffs on $200 billion of Chinese imports to 25 percent from 10 percent.
· An average family of four may take a hit of $767 a year, a trade group has estimated.
· If the administration eventually adds tariffs to all Chinese imports and China retaliates, that family could pay more than $2,000.
By Rachel Layne, CBS News
May 9, 2019
President Donald Trump's renewed threat to hike tariffs on $200 billion in Chinese imported goods as soon as Friday sent markets reeling and retailers warning consumers will be hit hard. But how much pain will consumers feel?
A good amount, apparently. Taken together, the tariffs -- levies paid by consumers and companies, not China -- could cost an average family of four $767 a year, one study from a group called the Trade Partnership estimated in February. The group also forecast the tariffs would cut U.S. employment by 934,000 people and subtract roughly 0.4 percentage points from U.S. GDP.
Mr. Trump Sunday tweeted that he intended to hike tariffs on Chinese goods to 25 percent from 10 percent put in place in September. That's on top of other tariffs, including those on steel and aluminum and those on an earlier $50 billion on Chinese imports imposed last year. As has been its pattern, the Chinese government is threatening to retaliate. A Commerce Ministry spokesman said Thursday that "China will have to take necessary countermeasures" if the U.S. tariffs move ahead.
Wall Street now appears to be betting that the higher duties will be imposed Friday. So far, a swath of consumer goods has mostly avoided large price increases. Some products, though, already made the list in September: shoes, luggage and accessories like backpacks and purses.
A blow to consumers ...
Absorb tariffs or pass them along? ...
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Leading Agriculture Commodities Oppose Additional Tariffs on Chinese Goods
Oklahoma Farm Report
10 May 2019
Today, the U.S. Trade Representative moved forward with increasing the tariff rate from 10 to 25 percent on $200 billion worth of Chinese goods. Farmers across the country are extremely concerned by the actions taken today by President Trump and his Administration. The National Association of Wheat Growers, the American Soybean Association, and the National Corn Growers Association were expecting a deal by March 1 before farmers went back into the fields but today saw an escalation of the trade war instead. The three commodities represent around 171 million of acres of farmland in the United States.
“U.S. wheat growers are facing tough times right now, and these additional tariffs will continue to put a strain on our export markets and threaten many decades worth of market development,” stated NAWG President and Texas wheat farmer Ben Scholz. “Further, members from both sides of the aisle and Chambers have reservations about the Section 232 tariffs in the U.S.-Mexico-Canada Agreement. Today’s announcement adds on another political barrier, which may hinder Congressional consideration of the Agreement.”
“We have heard and believed the President when he says he supports farmers, but we’d like the President to hear us and believe what we are saying about the real-life consequences to our farms and families as this trade war drags on,” said Davie Stephens, soy grower from Clinton, Ky., and ASA President. “Adding to current problems, it took us more than 40 years to develop the China soy market. For most of us in farming, that is two thirds of our lives. If we don’t get this trade deal sorted out and the tariffs rescinded soon, those of us who worked to build this market likely won’t see it recover in our lifetime"...