President Trump said Thursday evening that he is considering an additional $100 billion in tariffs on Chinese goods, in retaliation for tariffs China said it would impose on a long list of U.S. imports, from soybeans and pork to tobacco and ginseng. The Chinese announcement, which came without an effective date for the tariffs, came in response to Trump's $50 billion in import duties on Chinese steel and aluminum, which are still going through the formal approval process.
In a 6:47 p.m. statement, Trump said "China has repeatedly engaged in practices to unfairly obtain America’s intellectual property," and "Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers." The president said he had asked Agriculture Secretary Sonny Perdue, "with the support of other members of my Cabinet, to use his broad authority to implement a plan to protect our farmers and agricultural interests." He offered no details.
"In response to the possible new U.S. tariffs, China’s Commerce Ministry said Beijing would respond with its own countermeasures should it come to that," reports Bob Davis of The Wall Street Journal. The Journal's Washington Bureau chief, Gerald Seib, writes that Trump's announcement "was almost certain to cause fears of a full-scale trade war among investors, farmers and businesses with ties to Chinese trade." The news came after the close of stock trading, but recent trade tensions with Beijing have already fueled wide price swings in recent trading sessions." At 10:31 a.m., the Dow Jones industrial average was down about 200 points, or 0.8 percent; John Deere was down 1 percent.
"Why would President Trump threaten steep tariffs on Chinese imports, rattling stock markets?" asks the Journal's Greg Ip. "It’s partly because this is a negotiation, and a negotiator must show a tolerance for pain if his demands aren’t met. For Mr. Trump to succeed, China must believe its pain will exceed that of the U.S. in a trade war and settle on his terms. Whether he’s right depends heavily on who has the most leverage."
In a 6:47 p.m. statement, Trump said "China has repeatedly engaged in practices to unfairly obtain America’s intellectual property," and "Rather than remedy its misconduct, China has chosen to harm our farmers and manufacturers." The president said he had asked Agriculture Secretary Sonny Perdue, "with the support of other members of my Cabinet, to use his broad authority to implement a plan to protect our farmers and agricultural interests." He offered no details.
"In response to the possible new U.S. tariffs, China’s Commerce Ministry said Beijing would respond with its own countermeasures should it come to that," reports Bob Davis of The Wall Street Journal. The Journal's Washington Bureau chief, Gerald Seib, writes that Trump's announcement "was almost certain to cause fears of a full-scale trade war among investors, farmers and businesses with ties to Chinese trade." The news came after the close of stock trading, but recent trade tensions with Beijing have already fueled wide price swings in recent trading sessions." At 10:31 a.m., the Dow Jones industrial average was down about 200 points, or 0.8 percent; John Deere was down 1 percent.
"Why would President Trump threaten steep tariffs on Chinese imports, rattling stock markets?" asks the Journal's Greg Ip. "It’s partly because this is a negotiation, and a negotiator must show a tolerance for pain if his demands aren’t met. For Mr. Trump to succeed, China must believe its pain will exceed that of the U.S. in a trade war and settle on his terms. Whether he’s right depends heavily on who has the most leverage."
from The Rural Blog https://ift.tt/2Jly2up Trump talks tit-for-tat tariffs, unspecified protection for farm interests; China says it would respond; who has leverage? - Entrepreneur Generations
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