Asian Markets Fall as Trump Says China "Broke the Deal"


Trump made his claim about tariff revenue in a tweet on May 8 - a day before Chinese Vice Premier Liu He is expected to arrive in the us for trade talks. However, Chinese Vice Premier Liu He, the country's chief negotiator, decided yesterday to come to Washington to meet with his counterparts US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

The planned US tariff increase on $200 billion worth of Chinese imports from 10 percent to 25 percent starting on Friday was filed by the Office of the US Trade Representative, and the filing appeared on Wednesday in the Federal Register.

"Our orders will fall but we won't go bankrupt".

China's Commerce Ministry confirmed the latest U.S. tariff increase on its website. "We can't have that", he said.

American Apparel & Footwear Association President and CEO Rick Helfenbein also urged Washington to "refrain from imposing these additional tariffs and instead focus on negotiating and concluding the trade deal with China". "If Trump wants to do anything we can't stop him", said an employee at Tongwei Hainan Aquatic Products, which specialises in tilapia and ships most of its product to the US. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No! Trump made his statement during a campaign rally in Florida.

On the Chinese side, Vice Premier Liu He may be willing to undertake the "reforms" demanded by the USA and pull back somewhat on subsides to state-owned industries, to which the U.S. objects on the grounds they are "market distorting".

Referring to the visit of Chinese Vice Premier Liu He on Thursday, Trump said, "So, they're flying in, the vice premier tomorrow is flying in - a good man - but they broke the deal". They can't do that. So they'll be paying. Before the final "signing summit", both sides still have a lot of work to finish.

Following earlier widespread losses in Asia, Europe's main markets were all in the red. There has also been talk of the USA putting a tariff on imported automobiles, which would damage Europe's exports to the United States.

"The escalation of trade friction is not in the interest of the people of the two countries and the people of the world", a Chinese Commerce Ministry spokesman said, as quoted by Xinhua and The Wall Street Journal.

"There was a fundamental misunderstanding", he told AFP by email.

Kennedy warned that the "possibilities for miscalculation on both sides is pretty high".

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Robert Johnson, professor of finance at Heider College of Business, Creighton University in Omaha, Nebraska said. Moreover, smaller rival Lyft Inc's shares plunged this week after its first earnings as a public company.

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Though she also confessed to spilling the beans when she had too much to drink at their star-studded Christmas Eve party. Pictured inside: Kim picking up burgers and milkshakes from Burger IM on Thursday afternoon (May 9) in Los Angeles.

China said Thursday it will retaliate if President Donald Trump goes ahead with more tariff hikes in a fight over technology and trade, ratcheting up tensions ahead of negotiations in Washington.

How will the tariff increase affect negotiations?


The Trump administration raised tariffs on $200 billion in imported products from China at 12:01 a.m. ET Friday, significantly raising the stakes in the ongoing trade dispute with Beijing. He has also threatened to raise tariffs on $US200bn worth of Chinese goods this week and introduce new ones.

Washington has demanded far-reaching changes to the Chinese economy, such as subjecting state enterprises to market principles, reducing massive subsidies and ending the alleged theft of USA technology. "China sets great store on trustworthiness and keeps its promises, and this has never changed", he told a news briefing in Beijing.

Other experts though believe the Trump administration's position may not be as strong as headline indicators suggest.

"We'll increase tariffs on China".

First, as he has been doing for years, Trump overstates the trade deficit with China.

"The era of economic surrender is over". "The long-term goal here is to get a larger addressable market for USA companies".

"Without the legal change, U.S. officials will have more difficulty - almost impossible - selling the deal", said Coflan. "There's a lot of pressure on them".

Talks stalled last week reportedly because the Chinese side opted for regulatory rather than legislative implementation, which could be internally undone more easily.

Mary Lovely, an economist at Syracuse University, said the Chinese objected foremost to enacting a law to ratify the agreement, given that the text of any accord was likely to be "vague".