Months of trade negotiations took a downturn after China sent back edits to a 150-page draft that changed the terms of an agreement with the US.
According to CNBC, US representatives said that China’s revisions repeatedly omitted them from commitments resolve market practices that gravely undermine the US economy. China disagrees, and refuses to budge addressing a list of concerns such as: “theft of U.S. intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation.”
In response, US President Donald Trump tweeted, “The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!”
Then he threatened increase tariffs on $200 billion of Chinese imports from 10 to 25 percent on Friday, and later an additional $325 in goods.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars….
— Donald J. Trump (@realDonaldTrump) May 5, 2019
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
Since last year, the two strongest economies in tense talks. For the US, the projected completions is May 10, says Bloomberg Report. That might change. Recent market reports show a slight decline in S&P, as well as, Asian markets.
This week, a China team from Beijing plans to travel to the US to continue bargaining. Chief global market strategist Kristina Hooper described the standoff as “both sides playing a game of chicken,” to Bloomberg. Who will jump off of the road, if anyone at all, is unknown.
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