In this file:
· China Trade War Escalates
· U.S. Raises China Tariffs, Threatens to Impose More
· U.S., China Lack Deal But Avoid Rupture After Tariff Hike
· 'It can't get any worse': Iowa farmers suffer as U.S. trade war with China escalates
· China to impose tariffs on U.S. goods despite Trump warning
· China is raising tariffs on $60 billion of US goods starting June 1
China Trade War Escalates
Radio 570 WNAX (SD)
May 10, 2019
The trade war with China escalated last night as the President Trump increased tariffs against China from 10% to 25% on $200 billion of goods. China has threatened to retaliate. Nebraska Farm Bureau Director of National Affairs Jordan (dukes) Dux says the impacts of the trade war have already hurt U.S. and Nebraska farmers and ranchers and that is only expected to intensify.
He says despite the pain being felt by U.S. agriculture, most Nebraska farmers and ranchers support what the President is doing.
However, Dux says farmer’s patience is wearing thin, and a trade dispute resolution is badly needed.
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U.S. Raises China Tariffs, Threatens to Impose More
By WholeFoods Magazine
May 10, 2019
Washington, D.C., and Beijing, China—President Donald Trump has raised existing tariffs on $200 billion of Chinese imports to 25%, effective on all goods that shipped out of China after 12:01 Friday morning. Goods that shipped prior to midnight will be charged the previous 10% rate.
Beijing expressed intent to retaliate, although they have not specified how. The Chicago Tribune notes that Chinese officials can and have targeted American companies operating in China by slowing customs clearance and increasing regulatory scrutiny, hampering operations.
According to The Wall Street Journal (WSJ), President Trump has told reporters the U.S. is taking steps to impose 25% tariffs on the remaining $325 billion in Chinese goods that are currently untaxed.
Mr. Trump also tweeted that there’s “no need to rush” in these trade negotiations.
According to Oxford Economics, a 25% tariff on all imports would reduce the U.S. GDP by .5% in 2020, costing the economy $100 billion, or $800/household.
WSJ further quoted President Trump as saying tariffs collected by the U.S. will be used to buy domestically grown agricultural products, which will then be shipped overseas as humanitarian aid.
The Natural Products Association (NPA) issued a tweet that included a Call to Action, expressing support for the “Administration’s goal of establishing freer and fairer trade,” but asking members of the Industry to call on Congress to allow for ingredients used by the Industry to be included as List 3 exemptions, to minimize impact on the dietary supplements and natural products market.
And price increases are anticipated: As reported by the New York Times (NYT), “Thus far, most companies have managed to absorb the brunt of the initial batch of China tariffs, keeping inflation at bay, but analysts said that jumping to a rate of 25% is impossible to ignore.” NYT quoted Henrietta Treyz, director of economic policy at Veda Partners, as saying:
U.S., China Lack Deal But Avoid Rupture After Tariff Hike
Trump said Friday there’s no reason to rush a trade agreement
Talks in Washington made little progress, according to sources
By Saleha Mohsin, Ye Xie, and Shawn Donnan, Bloomberg
May 10, 2019
U.S. and Chinese officials wrapped up high-level trade talks on Friday, lacking a deal yet avoiding a breakdown in negotiations even after President Donald Trump boosted tariffs on $200 billion in goods from China and threatened to impose more.
Trump described the two days of talks as “candid and constructive,” and said that negotiations will continue “into the future.”
“In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!” Trump wrote on Twitter on Friday.
The U.S. gave its bottom line during the talks in Washington, saying Beijing had three to four weeks more to reach an agreement before the Trump administration enacts additional tariffs on $325 billion of Chinese imports not currently covered by punitive duties, according to two people familiar with the talks.
Treasury Secretary Steven Mnuchin also called the discussions constructive, while Vice Premier Liu He, the top Chinese negotiator, told reporters the talks went “fairly well.”
Yet several people familiar with the talks said little progress was made during a working dinner on Thursday and in Friday morning talks. Liu didn’t come prepared to offer much more in the way of concessions, one of the people said.
Liu and his delegation were expected to leave Washington on Friday afternoon, according to a person familiar with their planning.
After falling as much as 1.6% earlier Friday, the S&P 500 Index climbed later in the day amid optimism following the encouraging comments from Trump, Mnuchin and and Liu.
No Rush ...
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'It can't get any worse': Iowa farmers suffer as U.S. trade war with China escalates
Donnelle Eller, Des Moines Register (IA)
May 10, 2019
Battling rain and cold, crumbling trade talks with China, and slumping commodity markets, northern Iowa farmer Brent Renner says it's a struggle to feel optimistic about the corn and soybeans he's planting.
"It's a physical and mental challenge," said Renner, a 43-year-old who farms near Klemme, a town of about 500 people west of Clear Lake.
"A lot of us think it can't get any worse, that it can only go up from here. But that's probably not a safe bet," he said.
Prospects for improved prices are dimming, experts say, with record supplies, disease sweeping through China's pig herd cutting soy demand, and hope for a new U.S.-China trade deal slipping away.
Early Friday, President Donald Trump pushed tariffs to 25% from 10% on $200 billion in Chinese goods.
And the president is threatening to slap tariffs on another $325 billion in Chinese imports, covering everything China sells the United States.
"Farmers, particularly soybean farmers, have been the tip of the spear when it comes to Chinese retaliation, and I'm not sure they can take much more," said Kirk Leeds, CEO of the Iowa Soybean Association.
Escalating tariffs "undercut any remnants of optimism," Leeds said. "That's what's most devastating about this."
"There are some marketers who believe we could see $6 soybeans," he said, adding that he hopes prices don't sink that far.
Soybeans for May delivery were trading around $8 per bushel on the Chicago Mercantile Exchange on Friday.
Negotiations continue with China, but the country says it will retaliate, matching U.S. tariffs.
President Donald Trump tweeted Friday morning that U.S. farmers would be better off, with the government possibly buying $15 billion in goods to provide humanitarian assistance to needy countries...
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 ...
China is raising tariffs on $60 billion of US goods starting June 1
· China will raise tariffs on $60 billion in U.S. goods in retaliation for the Trump administration’s latest decision to increase duties on $200 billion worth of Chinese products.
· U.S. stock indexes fall about 2% as the trade war between the world’s two largest economies escalates.
Jacob Pramuk, CNBC
May 13, 2019
China will raise tariffs on $60 billion in U.S. goods in retaliation for the U.S. decision to hike duties on Chinese goods, the Chinese Finance Ministry said Monday.
Beijing will increase tariffs on more than 5,000 products to as high as 25%. Duties on some other goods will increase to 20%. Those rates will rise from either 10% or 5% previously.
The move follows President Donald Trump’s decision to raise duties on $200 billion in Chinese products to 25% from 10%. The world’s two largest economies have struggled to sign a trade deal and end a widening conflict that threatens to damage the global economy.
The latest shot in the trade war rattled investors. Major U.S. stock indexes dove more than 2% Monday amid the escalation.
The duties in large part target U.S. farmers, who largely supported Trump in 2016 but suffered from previous shots in the Trump administration’s trade war with China. The thousands of products include peanuts, sugar, wheat, chicken and turkey.
Neither the White House nor the Treasury Department immediately responded to CNBC’s requests to comment on the tariff increase.
In increasing duties on Chinese goods on Friday, the White House said Beijing backed out of major parts of a developing trade agreement. While Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer met with Chinese negotiators last week in talks Mnuchin called “constructive,” the sides could not strike a deal.
Trump, who wants to address grievances such as intellectual property theft, forced technology transfers and trade deficits, pushed China to make a deal ahead of its retaliation on Monday morning. In a string of tweets, the president argued the tariffs are “very bad for China.” He said “China should not retaliate” as it “will only get worse!”
“You had a great deal, almost completed, & you backed out!” he wrote of China and its President Xi Jinping...
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