JAKARTA (TheInsiderStories) – President Donald Trump announced the United States (US) will apply 10 percent tariff on US$300 billion’ Chinese goods startingSept. 1. The announcement is estimating will escalating the two countries’ festering trade dispute.
He blamed China for not following through on stopping the sale of fentanyl to the US or purchasing large quantities of farm goods such as soybeans. The move immediately sent stock prices sinking and sending the yield on the 10-year Treasury note to its lowest level since 2016.
The Dow Jones Industrial Average, which had been up nearly 300 points earlier, was down nearly 200 points soon after Trump’ tweets. The Dow closed for the day down 280 points — more than 1 percent.
While, oil prices plummeted more than 7 percent on Thursday (08/01), declining for the first time in six days. Brent crude oil also fell 6.99 percent to $60.50 a barrel, after having dropped to $60.02, its lowest level since June 13. The international benchmark’ declined was its biggest daily percentage drop since February 2016.
US West Texas Intermediate crude also down 7.9 percent at $53.95 after sinking to $53.59, the lowest level since June 19. It was the biggest percentage decline since February 2015.
Washington has already applied tariffs of 25 percent on $250 billion worth of goods from China. China retaliated with tariffs on $110 billion in American goods, including agricultural products, in a direct shot at Trump supporters in the US farm belt.
Trump’ threats come after a US delegation returned to Washington from what the White House described as “constructive” trade talks. The negotiations were expected to resume in Washington in September, though exact dates were not announced.
Trump issued the tariff threat in a series of tweets. He also tweeted “we look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”
“Our representatives have just returned from China where they had constructive talks having to do with a future trade deal,” he said. “We thought we had a deal with China three months ago, but sadly, China decided to renegotiate the deal prior to signing.”
Trump added, “More recently, China agreed to buy an agricultural product from the US in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States — this never happened, and many Americans continue to die!”
“During the talks the US will start, on September 1st, putting a small additional Tariff of 10 percent on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25 percent,” the president said.
The world’s two biggest economies are locked in a trade war over US allegations that Beijing uses predatory tactics — including stealing trade secrets and forcing foreign companies to hand over technology — in a drive to overtake American technological dominance.
Talks had broken down in May after the US accused the Chinese of reneging on earlier commitments. Trump has insisted that the tariff war is hurting China but not the US. He tweeted two days ago: “Trumps got China back on its heels, and the United States is doing great.”
But his administration is providing $16 billion in aid to American farmers — on top of $11 billion last year — to offset sales lost after China imposed retaliatory tariffs on soybeans and other US farm products.
Written by Lexy Nantu, Email: firstname.lastname@example.org