Recently,Trump in his series of tweets, announced an additional 10% tariff on the imports on Chinese products. This decision was taken after his top trade negotiators took up the slow pace of progress in US China talks in Shanghai last week. The new tariff will be imposed in working from September 1.
The new set of tariffs mark the continuation of the US-China trade war, and also brings an end to the run of positive trade talks that commenced in June when president Trump met China's President, Xi Jinping, at the G20 Summit in Osaka.
The trade battle between the world's two largest economies has dragged on for more than a year and a half.
This decision has hit the US markets hard.
Retail associations predicted a spike in consumer prices. Target Corp tumbled 4.2%, Macy's Inc fell 6% and Nordstrom Inc was down 6.2%.
Oil prices fell down by 7%, with Brent crude making it the biggest daily percentage drop since February 2016. The S&P 500, which had been in solidly positive territory on Thursday afternoon, closed down 0.9%.
Experts say, the tariffs may also force the Federal Reserve to again cut interest rates to protect the U.S. economy from trade-policy risks. Trump said Beijing has not yet stopped the sales of the synthetic opioid fentanyl to the United States, as it had promised to do. He also said Beijing had not fulfilled a goodwill pledge to buy more U.S. agricultural products.
Raising tariffs would lower the prospects of a deal rather than expedite it, China's Global Times newspaper said.
From Sept. 1, a 10% tariff will take effect on a further $300 billion in goods. Increasingly, though, that looks like it may not be the end of it.
The new set of tariffs mark the continuation of the US-China trade war, and also brings an end to the run of positive trade talks that commenced in June when president Trump met China's President, Xi Jinping, at the G20 Summit in Osaka.
The trade battle between the world's two largest economies has dragged on for more than a year and a half.
This decision has hit the US markets hard.
Oil prices fell down by 7%, with Brent crude making it the biggest daily percentage drop since February 2016. The S&P 500, which had been in solidly positive territory on Thursday afternoon, closed down 0.9%.
Experts say, the tariffs may also force the Federal Reserve to again cut interest rates to protect the U.S. economy from trade-policy risks. Trump said Beijing has not yet stopped the sales of the synthetic opioid fentanyl to the United States, as it had promised to do. He also said Beijing had not fulfilled a goodwill pledge to buy more U.S. agricultural products.
Raising tariffs would lower the prospects of a deal rather than expedite it, China's Global Times newspaper said.
From Sept. 1, a 10% tariff will take effect on a further $300 billion in goods. Increasingly, though, that looks like it may not be the end of it.
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