rss icon Subscribe
desktop mobile

Trump warns China Against Trade Talk Delays

AdobeStock / © Rawf8

U.S. President Donald Trump on Tuesday warned he would be "tougher" on Beijing in a second term if trade talks dragged on, compounding market fears that ongoing trade disputes between the United States and China could trigger a U.S. recession.

The world's two largest economies imposed fresh tariffs on each other on Sunday, ratcheting up a tit-for-tat tariff war that has unsettled financial markets and raised the specter of a global recession. U.S. and Chinese negotiators are due to meet in person in Washington this month, but no date has yet been set.

U.S. stocks fell on Tuesday as data showed factory activity contracted for the first time since 2016 in August, while the benchmark 10-year U.S. Treasury yield fell to its lowest since July 2016.

Trump, ignoring recent negative U.S. economic data, said in a posting on Twitter that the United States was "doing very well in our negotiations with China," and played up the damage U.S. tariffs were doing to the Chinese economy.

He warned that Beijing faced even tougher terms if the two sides did not resolve their trade dispute and he won re-election in November 2020, writing, "Deal would get MUCH TOUGHER! In the meantime, China's Supply Chain will crumble and businesses, jobs and money will be gone!"

He did not provide details about the negotiations or how they could become tougher.

Thomas Donohue, chief executive of the U.S. Chamber of Commerce, told CNBC that U.S. companies and workers were bearing the brunt of the U.S. tariffs but China's economy was also hurting.

He urged Trump to postpone the new tariffs that went into effect to give both sides time to reach an agreement.

Congressional passage of the U.S-Mexico-Canada (USCMA) trade agreement was possible, and would help boost the U.S. economy while reassuring financial markets, he said. "It would rub off on what we're doing in China."

Trump has often publicly repeated his belief that Beijing is trying to slow-walk trade negotiations in the hopes a victory by a Democratic presidential candidate in 2020 may lead to better terms in an agreement.

Washington began imposing 15% tariffs on an array of Chinese imports on Sunday, while China began placing new duties on U.S. crude oil.

China has since lodged a complaint against the United States at the World Trade Organization over U.S. import duties, its third lawsuit challenging Trump's China-specific tariffs.

Chinese Vice Premier Liu He said earlier on Tuesday that China vehemently opposes a trade war.

By Andrea Shalal and Makini Brice

Sep 3, 2019

 

People & Company News

Intellian Launches Next Gen Tri-band Product

Photo: Intellian

Intellian announced the launch of its next generation tri-band product, the v240MT Gen-II antenna.

France and Italy Christen Naviris

Photo: Naval Group

The intergovernmental agreement signed between French and Italian States to establish Naviris

Busan Builds Logistics Center in Rotterdam

Image: Port of Rotterdam

South Korean port company Busan Port Authority (BPA) said that it signed a contract with Samsung

Contracts

Hydro Tapped for Next Gen Coastal Cruise Ships

One of Havila Kystruten AS new coastal cruise ship. (Photo: Havila Kystruten AS)

Hydro has been awarded contracts from Tersan Shipyard to deliver aluminum solutions for the upper

Kongsberg to Equip Mystic Cruises Newbuilds

Photo: Kongsberg Maritime

Kongsberg Maritime said it has won contracts worth approximately 300 million NOK ($32 million) to

Norwegian Signs Fleet-wide Antifouling Contract

Seven Seas Voyager has been applied with Nippon Paint Marine’s A-LF-Sea hull coating as part of a fleet-wide agreement with Norwegian Cruise Line Holdings (Norwegian)

Nippon Paint Marine has signed a long-term supply contract with Norwegian Cruise Line Holdings to

Maritime Apps