… China’s Global Times’s editor in chief, Hu Xijin, is reporting that Beijing is also considering stopping buying US agricultural products -- which would be a serious blow to American farmers…

 

 

In this file:

 

·         Trade war: China hits back with new tariffs on US goods - business live

… China’s Global Times’s editor in chief, Hu Xijin, is reporting that Beijing is also considering stopping buying US agricultural products -- which would be a serious blow to American farmers…

 

·         Trump warns China against new tariffs

“…China should not retaliate - will only get worse…”

 

·         Kudlow says Trump-Xi meeting likely next month at international summit

… Kudlow confirmed that no new talks with Chinese negotiators have been scheduled…

 

·         China Trade War: We Are In Unchartered Waters

... China thinks that it can use the tool of its state banks and central bank to keep the economy going for the next two years. They will take a risk on Trump's re-election. If Trump is not re-elected, then a Democrat takes over. Not a single Democrat is focused on China...

 

·         China to impose tariffs on U.S. goods despite Trump warning

... China's finance ministry said it plans to set import tariffs ranging from 5 percent to 25 percent on 5,140 U.S. products on a target list worth about $60 billion. It said the tariffs will take effect on June 1...

 

 

 

Trade war: China hits back with new tariffs on US goods - business live

 

Rolling coverage of the latest economic and financial news, as fears of a deepening trade war hit shares in Asia

 

·         BREAKING: China retaliates with new tariffs

·         Tariffs on $60bn of US goods begin in June

·         Trump warns China will be hurt badly

·         China vows not to surrender

·         Yuan hits lowest level since January; soybeans at record low

·         America now drawing up tariffs on all Chinese goods

 

Graeme Wearden, The Guardian (UK)

May 13, 2019

 

08:33

 

Ouch! Wall Street is now heading for sharper falls, as the sight of China hitting back against the US gives investors a fright.

 

The Dow Jones industrial average is bring called down 464 points, or 1.8%, to 25,500.

 

The Nasdaq index is rattling towards a 2.5% plunge -- it’s full of technology companies who would suffer badly if trade relations between the US and China get any frostier.

 

European markets have been dragged deeper into the red too, with Germany’s DAX falling 1.3% today.

 

08:29

 

Global Times: China may stop buying US agricultural products

 

China’s Global Times’s editor in chief, Hu Xijin, is reporting that Beijing is also considering stopping buying US agricultural products -- which would be a serious blow to American farmers.

 

China is also considering slashing orders for new Boeing planes, he adds. If so, that would further ratchet up the trade war.

 

08:22

 

China announces new tariffs on US goods

 

NEWSFLASH: China has just escalated the trade war with the US, by announcing plans to hike tariffs on American goods bought by Chinese companies.

 

Beijing says that it will set new tariffs of between 5% and 25% on $60bn of US imports.

 

The move will hit around 5,000 products, it says.

 

The tariffs are due to kick in on June 1st, or under three week’s time.

 

This is China’s eagerly-awaited response to the new US tariffs on $200bn of Chinese goods, which was implemented on Friday morning.

 

It shows that Beijing is determined not to back down, and prepared to ignore Donald Trump’s warning’s that they will suffer if they hit back.

 

more, including tweets 

https://www.theguardian.com/business/live/2019/may/13/trade-war-investors-china-retaliation-us-tariffs-growth-stock-markets-business-live

 

 

Trump warns China against new tariffs

 

BBC News

May 13, 2019

 

US President Donald Trump has denied that US consumers will pay for higher tariffs on Chinese imports and has warned China not to follow suit.

 

The US more than doubled tariffs on $200bn (£153.7bn) of Chinese goods on Friday, in a sharp escalation of their trade war.

 

But in a series of tweets, Mr Trump said China had "taken so advantage of the US for so many years".

 

"Therefore, China should not retaliate - will only get worse!" he added.

 

Mr Trump said US consumers could avoid the tariffs by buying the same products from other sources.

 

"Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That's why China wants to make a deal so badly!" he said.

 

Earlier, Mr Trump's top economic adviser, Larry Kudlow, said "both sides will suffer" from the trade dispute.

 

But Mr Trump downplayed the impact of the tariff hike on the US.

 

"We are right where we want to be with China. Remember, they broke the deal with us & tried to renegotiate," Mr Trump wrote in another post on Twitter...

 

more, including tweets

https://www.bbc.com/news/business-48246821

 

 

Kudlow says Trump-Xi meeting likely next month at international summit

 

By Sarah Westwood, CNN

May 13, 2019

 

Washington (CNN)Larry Kudlow, President Donald Trump's top economic adviser, said Sunday there is a "strong possibility" Trump will meet Chinese President Xi Jinping at the G20 economic summit in Japan next month and said he expects China to retaliate against the US for its increase last week in tariffs on Chinese goods as Beijing has indicated it would.

 

"We were moving well, constructive talks -- and I still think that's the case ... but the problem is, two weeks ago in China, there was backtracking by the Chinese," Kudlow told Fox News' Chris Wallace on "Fox News Sunday."

 

He said, "I think I do," when asked whether US officials expect the Chinese to retaliate for the tariff hike put on by the US last week when it increased the rate to 25% on $200 billion of Chinese goods.

 

"We may know more today or even this evening or tomorrow," Kudlow said of the expected retaliation. "We'll see what they come up with."

 

Contrary to the President's suggestions that the Chinese alone will pay the tariffs imposed by the US, Kudlow acknowledged US companies would pay in effect a tax increase that oftentimes is passed on to consumers, but he added that "both sides will pay" because both nations' economies will feel some impact from the duties.

 

He argued, though, that the tariffs would have a "very modest" impact on US economic growth and said the tariffs have increased customs revenues.

 

Pressed further by Wallace about the President's comments regarding China paying the tariffs and whether it's US businesses and consumers who pay, Kudlow said: "Yes, to some extent. I don't disagree with that. Again, both sides ... both sides will suffer on this."

 

"The economic consequences are so small but the possible improvement in trade ... this is worthwhile doing," he said.

 

Kudlow confirmed that no new talks with Chinese negotiators have been scheduled, but he said US Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin have been invited to return to China for more discussions...

 

more

https://www.cnn.com/2019/05/12/politics/trump-larry-kudlow-president-xi-jinping/index.html

 

 

Chinese envoy says trade talks with US have not broken down

 

Associated Press

May 11, 2019

 

BEIJING (AP) — China’s leading envoy to trade talks in Washington says the failure to strike a deal in the tariffs war with the U.S. was “just a small setback” and negotiations will continue despite increases in import duties on American imports from China.

 

In comments to reporters before he left Washington for Beijing on Friday, Vice Premier Liu He said he was cautiously optimistic but that a deal would require the Trump administration to agree to end the punitive tariffs it has imposed on billions of dollars’ worth of Chinese goods.

 

In comments carried by China’s state-run CCTV, Liu said the remaining differences are crucial ones having to do with principles, “and we will make no concessions on matters of principle.”

 

Still, he said he did not believe the negotiations had broken down.

 

“On the contrary, I think it is just a small setback in the talks between two countries, which is inevitable,” Hong Kong’s Phoenix TV showed him as saying.

 

Liu said it was “China’s opinion that the tariffs are the starting point of the trade friction and must be totally lifted if a deal is reached.”

 

The Trump administration raised tariffs on billions of dollars of Chinese goods to 25% from 10% on Friday. U.S. Trade Representative Robert Lighthizer said the U.S. was preparing to expand those tariffs to cover $300 billion of Chinese products that aren’t already facing import taxes, or virtually everything imported from China...

 

more

https://apnews.com/b9d015d706b1440e99d78a2f650dcd99

 

 

China Trade War: We Are In Unchartered Waters

 

Kenneth Rapoza, Senior Contributor, Forbes

May 10 2019

 

The trade truce abruptly ended on Sunday. The market went from betting on no new tariffs to betting there will be tariffs, with a hope for further talks. All of this changed over a three day period. Tariffs kicked in early this morning. This was promised not only Sunday but months ago. They were supposed to go up March 1. Wall Street has discounted the threat since. The new normal has U.S. companies paying 25% more for around $200 billion worth of Chinese goods. China responded to the tariffs by putting its plunge protection team to work on Friday. Stocks rose over 3% in Shanghai.

 

We are now in unchartered waters.

 

Judging by press reports, China trade negotiator Liu He brought nothing new to the table on Thursday. Let's see what he comes up with today.

 

David Fickling, a Bloomberg columnist, hit the nail on the head this morning in an op-ed suggesting that neither side wants a deal. I'd go overweight that view rather than underweight.

 

China thinks that it can use the tool of its state banks and central bank to keep the economy going for the next two years. They will take a risk on Trump's re-election. If Trump is not re-elected, then a Democrat takes over. Not a single Democrat is focused on China. Senior Democrats Nancy Pelosi and Chuck Schumer are pro-tariffs, but they are not running for president. Time is on China's side. They are betting that tariffs strangle the farm belt and business owners, part of the president's core voter, and he is a one-termer.

 

The Trump Administration has an end game. They want to make it as expensive to produce a widget in China as it is in South Korea or Taiwan. If American companies are finding it too expensive to buy from China, which sells us nearly everything inside a Bed, Bath & Beyond, and a large number of items at Home Depot, then they will just have to source it from someplace else. It will be a pain in the neck to remap the global supply chain, but China will no longer be the deflationary, manufacturing hub of the world. This puts stress on China's growth model...

 

more

https://www.forbes.com/sites/kenrapoza/2019/05/10/china-trade-war-we-are-in-unchartered-waters/

 

 

China to impose tariffs on U.S. goods despite Trump warning

 

By Makini Brice and Ben Blanchard, Reuters

via Yahoo! Finance - May 13, 2019

 

WASHINGTON/BEIJING (Reuters) - China said on Monday it would impose higher tariffs on a range of U.S. goods, striking back in its trade war with Washington shortly after U.S. President Donald Trump warned it not to retaliate.

 

China's finance ministry said it plans to set import tariffs ranging from 5 percent to 25 percent on 5,140 U.S. products on a target list worth about $60 billion. It said the tariffs will take effect on June 1.

 

The announcement came less than two hours after Trump warned Beijing not to retaliate after China said it "will never surrender to external pressure."

 

The White House and U.S. Trade Representative's office did not immediately return a request for comment.

 

Global equities fell sharply on Monday as hopes of an imminent trade deal between the world's two largest economies were crushed. Major U.S. stock index futures were down about 2 percent. [MKTS/GLOB]

 

The trade war escalated on Friday after Trump hiked tariffs on $200 billion worth of Chinese goods, saying China had reneged on earlier commitments made during months of trade negotiations.

 

Beijing had vowed to respond to the latest U.S. tariffs. "As for the details, please continue to pay attention. Copying a U.S. expression - wait and see," Foreign Ministry spokesman Geng Shuang told a daily news briefing on Monday.

 

Trump warned China not to intensify the trade dispute and urged its leaders, including President Xi Jinping, to continue to work to reach a deal. "China should not retaliate-will only get worse," he said on Twitter.

 

"I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don't make a deal because companies will be forced to leave China for other countries," Trump wrote.

 

STEADY DRUM BEAT ...

 

more

https://finance.yahoo.com/news/china-defiant-toward-u-trade-kudlow-urges-strong-003402716--finance.html