China stocks tumble on Trump tariff threat

President Donald Trump took to Twitter on Sunday to announce his plans to increase tariffs on Chinese imports.

President Donald Trump raised pressure on China on Sunday, threatening to hike tariffs on $200 billion worth of Chinese goods in a tweet that sent financial markets swooning. Negotiations have reportedly become more contentious in the end stage, however, though USA officials said that last week's talks in Beijing were productive.

President Trump threatened China with an nearly hilariously dramatic trade war escalation on Sunday, days before a Chinese delegation of more than a hundred people arrive in Washington to iron out a final deal.

Mr Trump tweeted, "The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!"

"It's not in his interest for shares to go down as it would hit USA business confidence and investment, and that would shoot up unemployment". Mr Trump has pledged not to impose auto tariffs on Japan and the European Union while trade negotiations with those partners are underway.

Trump's threat could even work as intended, as any world leader who thinks Trump actually knows what he's doing, listens to his advisers, or regularly understands the real world consequences of anything he does or says, has not been paying much attention.

The administration repeatedly has suggested that the negotiators were making progress.

Chinese President Xi Jinping's top trade envoy, Liu He, was slated to return to Washington on Wednesday for what was expected to be a closing round of trade talks.

Democrats Give Attorney General New Deadline, Threaten Contempt
Mueller to provide testimony "regarding any misrepresentation by the attorney-general of the substance of that phone call". If Democrats do decide to impeach the president, they will have already made part of the case through oversight.

The US president originally imposed a 10 percent tariff on these goods in September that was due to rise in January, but postponed this as negotiations advanced.

The two countries have been locked in a high-stakes dispute over China's push to establish itself as a technological superpower. The deadline ended in March, which was extended by Trump and he did not increase the import tariffs.

The US has imposed tariffs on United States dollars 250 billion of Chinese goods, having accused the country of unfair trade practices.

The US officials had previously said that a deal could be reached by Friday.

Trump and the Chinese president will decide after the negotiations this week whether they'll meet to sign off on a pact.

In Sydney the benchmark ASX200 was off 1.1% while the Australian dollar - a proxy trade for the Chinese economy and commodities - fell 0.7% and is now below the US70c mark.

- Tariffs of 5 per cent to 10 per cent on $60 billion worth of United States goods, including liquefied natural gas, chemicals, frozen vegetables and food ingredients, imposed on September 24. Increasing the tariffs to 25 percent on $200 worth billion of Chinese goods would turn that figure to 0.9 percent, while imposing 25 percent tariffs on the rest of the $325 billion worth of goods would drag GDP growth down by 1.5 percent.

"Investors will remain bearish on the yuan, as they reprice in trade war risks because the new developments are a reversal of previous positive progress", Ken Cheung, senior foreign-exchange strategist at Mizuho Bank.

Related News:



Most liked

Google I/O 2019 rumours: What to expect from biggest annual developer conference
As per leaks, The Pixel 3a and 3a XL are expected to launch with a 5.6-inch and 6-inch FHD+ OLED screen respectively. Then there's Google Lens , which turns the camera of Android phones into a powerful computer vision tool.

England overcome batting collapse to beat Ireland by four wickets
Despite witnessing the brilliant performance of Joshua Little who took four crucial wickets in eight overs Ireland lost the match. Things might have been different had Foakes, on 37, not survived a tight lbw appeal from veteran Ireland paceman Tim Murtagh.

Prince Harry and Queen Elizabeth II's relationship
Royal watchers have been anticipating the announcement of a royal baby for some time, with Meghan due to give birth any day. Last week it was reported that the Duke has cancelled his overseas trip to Amsterdam next week.

USA jobless rate at its lowest since 1969
And the unemployment rate for veterans of the Iraq and Afghan wars dropped to 1.7 percent, also a record low. MORE FROM FOX BUSINESS Here are some of the key highlights from April's job report .

Trump pledges to raise tariffs on $200B of Chinese goods to 25%
The White House has ramped up pressure to reach a deal, warning it could still walk away from the months-long negotiations. Fears about a further escalation caused a slump in world stock markets towards the end of previous year .

Europa League spot is 'right place' for Man United - Solskjaer
It is an uncomfortable truth for Woodward and the scouts, analysts and deal-makers who have been tasked with spending the money. Watching it unravel again at Huddersfield , Sky Sports pundit Gary Neville was scathing.

Burning Aeroflot plane lands in Moscow, at least five people injured
Many passengers then escaped via the plane's emergency slides that inflated after the hard landing. It remains unclear how many people have been injured in the large blaze.

India retains No. 1 Test ranking, England top in ODIs
Even as West Indies continue to languish at the eighth spot, they have closed down their gap with Pakistan from 11 points to 2. India retained their number one position in the ICC Test Rankings for Teams following the update of the same on Thursday.

Adam Sandler jokes about 'SNL' firing, brings back Chris Rock
"That's why I'm singing about my boy, Chris Farley ". "We kind of quit at the same time as being fired". Davidson said, with Sandler responding, "I don't know but be patient, because it's coming soon".

Church of Scientology measles quarantine: Cruise ship heading to Curacao today
Authorities in the eastern Caribbean island have quarantined the ship after discovering a confirmed case of measles aboard. A tracking map on MarineTraffic.com shows the vessel left the port city of Castries on St.

NFU: Outsourcing emissions will not solve global climate change challenge
Wales should aim to cut greenhouse gases by 95% by 2050 to help tackle global warming, according to a UK Government report. However, it stresses the costs of moving to a low-carbon society must be fair.

Qualcomm Expected to Prosper from Apple Settlement
He added: "We are executing well on our strategic priorities as 5G commercial launches begin around the world". Since the settlement, Qualcomm's share price has risen by 43%, and Apple's has also risen by more than 5%.

Ashton Kutcher Likely to Testify at 'Hollywood Ripper' Trial
A jury was selected over the past few days and on Thursday prosecution and defense attorneys will give their opening statements. According to The Sun UK , the actor looked in the window and saw what he thought was a wine stain before leaving.

Derby officials say Maximum Security broke interference rule
Code Of Honor was promoted to second place and Tacitus, the winner's stablemate, moving up to third. This meant that Country House , the second place finisher, is the 2019 Kentucky Dery victor .

Senate upholds veto of Yemen resolution in victory for Trump Saudi policy
Neither has garnered the two-thirds support in both the Senate and the House of Representatives needed to override. The resolution passed through both chambers of Congress in early 2019, only for President Donald Trump to veto it.