Next round of United States tariffs a month away; Mnuchin

Ann Santiago
May 24, 2019

Trump also said he will meet with China's President Xi Jinping when they attend the G20 meeting next month in Japan.

Global stock markets are gyrating again as traders monitor the latest developments in the US-China trade war.

China retaliated with its own levies on United States imports, but it was Washington's subsequent move against Huawei that took the trade war into a new phase, stoking fears about risks to global growth and knocking financial markets.

A spokesman for China's Commerce Ministry said Washington was "using American national power to suppress Chinese companies".

Some of the world's biggest footwear firms are urging President Donald Trump to end the United States trade war with China, warning of a "catastrophic" effect on consumers.

President Donald Trump followed through with his threat to increase tariffs on $200 billion in Chinese goods from 10% to 25%.

"For 10 months, China has been paying Tariffs to the US of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods", Trump tweeted May 5.

"The idea is not to have tariffs, the idea is for them (China) to treat our companies fairly", Mnuchin said on Wednesday, and referred to the impact on US agriculture, which has been among the targets of China's retaliatory tariffs.

The United States is at least a month away from enacting its proposed tariffs on $300bn worth of Chinese imports as it studies the impact on consumers, US Treasury Secretary Steven Mnuchin said on Wednesday.

The move is a potentially devastating blow for the company and has rattled technology supply chains and investors.

Perdue said Thursday that "It would be very hard to understand how a trade deal could be consummated before that first payment".

The tariffs, which will for the first time hit consumer goods including smartphones and PCs, will simultaneously raise inflation, Nomura said.

"China is open to the door of dialogue, but sincerity is indispensable to make a consultation meaningful", Lu said at regularly scheduled briefing.

While China has not said whether or how it may retaliate against the measures targeting Huawei, state media have taken an increasingly strident and nationalistic tone and vowed Beijing will not bend to U.S. pressure.

A recent escalation in the US-China trade conflict, including tariff hikes from both sides, has sparked reaction from industries hit by the higher levies.

He reiterated China's criticism of USA efforts to restrict commercial cooperation with equipment maker Huawei and other Chinese high-tech firms.

China has not said whether or how it may retaliate against the measures directed at Huawei, but state media have taken an increasingly nationalistic tone and vowed Beijing will not bend to US pressure.

All told, tax payments from the latest round of tariffs come to about $26.9 billion a year, or $211 for each US household, while deadweight losses came to around $79.1 billion, or $620 per household, the report found.

American business activity tumbled to a three-year low in May due in large part to concerns about tariffs, according to a report released on Thursday by IHS Markit.

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