U.S., China break off latest trade talks without announcing deal, as new tariffs rile markets

[Zippyjuan]

https://www.usatoday.com/story/news/politics/2019/05/10/donald-trump-says-trade-talks-china-continue-despite-tariff-hike/1162002001/

Trump in denial. Also mistakenly says China is paying for the tariffs. Tariffs are paid by US consumers and businesses who import goods from China- not the Chinese. Just a few days ago he was claiming a trade deal with China could be reached by today (Friday, May 10th).

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WASHINGTON – The United States and China ended a session of trade talks Friday without an announcement of an agreement, hours after new tariff hikes took effect and President Donald Trump threatened new ones.

The latest talks were "constructive," Treasury Secretary Steve Mnuchin told reporters, but he did not provide details.

"Talks with China continue in a very congenial manner – there is absolutely no need to rush," Trump said in an early morning series of tweets sent just hours after new tariffs took effect.

Global markets have dropped throughout the week, as investors feared new U.S. tariffs and Chinese retaliatory tariffs will raise prices for consumers and slow the global economy. The Dow Jones Industrial Average was down 1% on Friday at midday but trimmed its losses a bit after Mnuchin's statement.

While Trump claimed that "tariffs will bring in FAR MORE wealth to our country than even a phenomenal deal of the traditional kind," market analysts noted that China will retaliate by increasing tariffs on U.S. goods.

The results, they said, will be higher prices for consumers, perhaps less trade between the world's two largest economies, and more complicated negotiations on a new trade agreement.

New U.S. tariffs on $200 billion in Chinese goods went into effect at 12:01 a.m. on Friday, after the two sides were unable to nail down the details of a new trade agreement during talks on Thursday.

Rates jumped to 25% from 10% on a massive range of Chinese goods, including office furniture, handbags and frozen catfish fillets.

Trump met Thursday night with Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer, and they agreed to "continue discussions" on Friday with the Chinese, the White House said.

Trump has expressed both optimism and pessimism about a new trade deal in the run-up to the Friday deadline, roiling markets as investors tried to parse the president’s words and assess whether he was serious about raising the tariffs.



https://www.cnbc.com/2019/05/01/trump-news-us-china-trade-deal-possible-by-next-friday.html


A US-China trade deal is 'possible' by next Friday,

The announcement of a U.S. trade deal with China is "possible" by next Friday, sources told CNBC on Wednesday.

A U.S. delegation met with Chinese negotiators in Beijing on Wednesday as the world's two largest economies try to hammer out details of an agreement. Chinese Vice Premier Liu He will travel to Washington for talks next week.

Washington and Beijing have pushed to resolve a trade dispute that led to a series of tariffs and raised fears about spiraling economic damage. While both sides have repeatedly touted progress in the talks, disputes such as whether to immediately remove existing tariffs or keep them in place as an enforcement measure to stop practices such as intellectual property theft have derailed a final deal. President Donald Trump also wants China to buy more U.S. goods to reduce the trade deficit between the countries.

On Wednesday, the White House said the latest talks moved Washington and Beijing closer to an agreement. In a statement, White House press secretary Sarah Huckabee Sanders said, "Discussions remain focused toward making substantial progress on important structural issues and rebalancing the US-China trade relationship."

White House chief of staff Mick Mulvaney said Tuesday that the U.S. should know "one way or the other in the next couple weeks" about how the trade talks will be resolved.



Looks like it is "the other"- no trade agreement.

[Swordsmyth]

China refused to play fair and now they can suffer the consequences.

They are paying most of the tariff costs because they lower their prices to compensate and restoring free market conditions by eliminating ChiCom government manipulation of the market is best for America in the long run anyway.

[Zippyjuan]

And back with more meaningless cliches from the Internet Forum Guidebook.

https://www.reuters.com/article/us-usa-trade-china-tariffs-explainer/explainer-who-pays-trumps-tariffs-china-or-u-s-customers-and-companies-idUSKCN1SC1ZC


HIGHER PRICES FOR TRACTORS, WASHING MACHINES
Higher duties on imports of metals and Chinese products, for example, increased Caterpillar’s production costs by more than $100 million last year. In response, the heavy-duty equipment maker increased prices for its products.

Tractor manufacturer Deere & Co estimates a $100 million increase in its raw materials costs this year because of Trump’s tariffs on Chinese imports. Deere has cut costs and increased prices to protect its profits.

A Congressional Research Service report in February found that the tariffs led to increases in washing machine prices of as much as 12 percent, compared to January 2018, before tariffs took effect.

Steel and aluminum tariffs increased the price of steel products by nearly 9 percent last year, pushing up costs for steel users by $5.6 billion, according to a study by the Peterson Institute for International Economics.

U.S. companies and consumers paid $3 billion a month in additional taxes because of tariffs on Chinese goods and on aluminum and steel from around the globe, according to a study by the Federal Reserve Bank of New York, Princeton University, and Columbia University. Companies shouldered an additional $1.4 billion in costs related to lost efficiency in 2018, the study found.

Just look at all that winning for US companies! Non- importing companies have also been raising their prices as their competition is forced to raise theirs so you don't avoid the costs by avoiding imports.