Trump's New Tariffs Send Stock Market Spiraling
- Author: Darren Santiago Aug 02, 2019,
Aug 02, 2019, 0:23
"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!" the president wrote on Twitter.
President Trump unexpectedly announced on Thursday that he will impose new tariffs on $300 billion worth of Chinese imports, effectively taxing every product that Americans buy from China.
Trump tweeted amid slow-moving talks with China that negotiations will continue.
On Wednesday, Trump warned China that it will get "a much tougher" trade deal if it keeps stalling the talks until the 2020 presidential election in the US.
US stocks pared gains on the news, while yields on 10-year Treasuries fell to the lowest since 2016.
"Certainly, we've seen. that when there's a sharp confrontation between two large economies, you can see effects on business confidence pretty quickly and on financial markets pretty quickly", Fed Chairman Jerome Powell said in a news conference after the interest-rate announcement.
Moments prior to the final stock numbers, Trump told reporters outside the White House that he was not concerned about the drop in Dow stocks.
Trump says he is ready to help resolve S Korea-Japan dispute
Nevertheless, Japan has denied this, arguing that the controls are mandatory for national security. Police declined to comment, saying they were investigating.
Stephen Lamar, executive vice president of the American Apparel & Footwear Association, told Reuters the tariffs would be "hugely disruptive", and would drive prices for consumers higher since they can not easily be absorbed in the supply chain.
Trump accused China of reneging on past commitments to the U.S. days after high-level negotiations resumed between the two sides.
Hours after US President Donald Trump announced Thursday that new tariffs would be imposed on Chinese goods, US stocks dropped dramatically.
The latest round of tariffs comes amid mounting concern that Mr Trump's strategy is proving counter-productive and harming the USA more than China.
US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin resumed talks with their Chinese counterparts in Shanghai this week, but those ended with little evidence of progress.
Another meeting between the USA and China is set for September in Washington, D.C.
The surprise move came a day after face-to-face talks between US and China negotiators concluded in Shanghai.
He said he thinks that Chinese President Xi Jinping wants to make a deal, "but frankly, he's not going fast enough". "And they're paying for these tariffs", Mr. Trump said.