Trade War Could 'Push the Global Economy into Recession': Bank of America

Beijing said it would be forced to take

U.S. President Donald Trump said Friday there was "no need to rush" to get a trade deal with China, hours after he raised tariffs on US$200 billion in Chinese goods, escalating a battle over China's technology ambitions.

Economists have sought to counter Trump's oft-repeated claim that his trade war with the Chinese benefits the US economy, noting that tariffs are essentially a tax that will raise the price of consumer goods.

Trump, who has adopted protectionist policies as part of his "America First" agenda and railed against China for trade practices he labels unfair, has accused Beijing of reneging on commitments it made during months of negotiations.

In response to the latest round of tariffs, China's Ministry of Commerce said, "China deeply regrets that the U.S. has chose to increase the tariffs from 10 percent to 25 percent on US$200 billion worth of China goods exported to the United States".

China had earlier threatened to raise tariffs on $60 billion of United States imports but held off amid a trade war truce.

The negotiations were due to resume on Friday morning Washington time.

Despite Trump's insistence that China will absorb the cost of the tariffs, USA businesses will pay them and likely pass them on to consumers.

If the two sides fail to reach an agreement, Trump will come closer to decoupling the US and Chinese economies - which he claims will bring blue-collar manufacturing jobs back to the United States.

Liu told reporters upon his arrival that he came to Washington with sincerity, saying that under the current special circumstances he hopes to engage in rational and candid exchanges with the USA side.

Mike Pompeo puts off Greenland stop because of pressing business on Iran
Pompeo said the West faced the re-emergence of great power competition from China , Russia, and Iran. There will be "consequences" if Iran ceases its commitments on the nuclear deal, he noted.

Sources familiar with the discussions told the business resource that little progress had been made on a trade deal during the two days of talks, with Liu expected to leave Washington later Friday. -China trade negotiations this week, derailing what appeared to be fruitful dialogue for much of the year. This has led to a total cost to USA consumers of 1.5 billion US dollars a year.

"I'm different than a lot of people".

The US is set to increase tariffs on $200bn (£153.7bn) worth of Chinese products on Friday, in a sharp escalation of their damaging trade war.

US business groups appealed for a settlement that will resolve chronic complaints about Chinese market barriers, subsidies to state companies and a regulatory system they say is rigged against foreign companies.

Michael Taylor, a managing director for Moody's Investors Service, said the tariff hike "further raises tensions" between the two countries.

"What the Chinese step-back primarily says is they don't want to publicly acknowledge that their existing laws, especially on IP, are flawed", he told AFP.

Trump commented on the tariffs Friday morning in a series of tweets. Most of these companies except the Chinese e-commerce giant Alibaba have limited exposure to the USA market.

The move comes as high-level officials from both sides hold trade talks in Washington. The president calls it the United States-Mexico-Canada Agreement, in order to make it seem like he scrapped the old deal, fulfilling another campaign promise, but Canadians call it the new North American Free Trade Agreement (NAFTA). "325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%", he wrote. The S&P 500 rose by 0.37 percent.

Moments earlier, Chinese Vice Premier Liu He shook hands with both men on the steps of the US Trade Representative's office before driving off.

Related:

Comments

Latest news

Kerr confirms KD out remainder of Rockets series
Golden State almost gave it away with an bad third quarter, when the Warriors managed just 15 points and committed six turnovers. The two-time Finals MVP will undergo an MRI on Thursday, and it's not yet known whether he will make the trip to Houston .

Richard Burr takes heat over Donald Trump Jr. subpoena
Trump praised his son for volunteering for his presidential campaign despite having very little experience in politics. It's time to focus on ISSUES, not investigations", House Minority Leader Kevin McCarthy (R-Calif.) wrote on Twitter.

Google Maps AR rolling out to Pixel devices
A bigger question is whether customers should simply buy the Pixel 3a over the standard Pixel 3 , which retails for $799. The size of the display also makes this device feel really good in your hands; it's a touch lighter than the Pixel 3XL.

China to retaliate if United States raises tariffs as planned -commerce ministry
The market volatility has been ignited by weekend tweets from President Trump that shook up trade negotiations with China . The president confirmed that Vice Premier Liu He was coming to Washington as part of the delegation .

Hackers steal $40 million of Bitcoin from crypto exchange Binance
In a tweet linking to the post, Zhao said it was "not the best of days, but we will stay transparent". Another user highlighted the fact that hackers withdrew the same amount of Bitcoin previous year .

More details] Project Mainline offers Android Q modular security updates
The Pixel 3a and its 0.4-inch larger cousin, Pixel 3a XL , which starts at $479, could upset Android partners, analysts said . Like its elder siblings, Pixel exclusive features such as Now Playing has been carried onto the Pixel 3a and 3a XL .

Cardiff relegated from Premier League
Cardiff needed to avoid defeat against the Eagles on Saturday in a bid to stand a chance ahead of the final round of the league. For 15 years I've said dont worry, one day I'm going to shoot and score a big goal. "It wasn't to be".

Tencent Replaces PUBG by 'Game for Peace' in China
Other than the lack of blood and gore, Game for Peace looks and plays nearly exactly like PUBG Mobile , according to its players. SAPP only began approving new games in January and last month issued new guidelines for games that blacklisted certain content.

Dark Mode is coming in Android Q
Google has unveiled several new features for the upcoming tenth release of its Android mobile operating system - Android Q. There will also be support for portrait mode photos, Motion Auto Focus, and unlimited Google Photos storage.

Delighted and thrilled: British royals welcome Harry and Meghan's baby
Berthelsen said the only way Prince Harry's son would be called a prince is later in life when Prince Charles succeeds the throne. The couple is also waiting to announce the name of the new royal baby. "Her Royal Highness and the baby are both doing well".

Meghan Markle’s home birth plan dashed when she is rushed to hospital
He said Meghan and the baby were doing "incredibly well", adding that they were still thinking about names for the infant. However, the couple does have plans to make their debut as a family in two days' time.

Boeing didn't tell airlines that safety alert wasn't on
The company is working on a software fix it hopes will get the planes flying again this summer. The 737 Max has been grounded around the world for nearly eight weeks.

Treasury Department To Congress On Request For Trump's Taxes: Go Shove It
A Committee spokeswoman did not respond to Newsweek's questions Monday about what - if any - legal action that meant. The IRS tax returns issue dates back well before he was in office.

Reaction after Reuters journalists freed from Myanmar prison
Reuters released a video showing Wa Lone and Kyaw Soe Oo reuniting with their families, hugging their wives and young children. Wa Lone and Kyaw Soe Oo were arrested on the evening of 12 December, 2017.

Liverpool vs. Barcelona Start Time, Live Stream Free
Klopp said the youngster has regained match fitness to be considered for his senior debut. Here are some of the best Twitter reactions to Barcelona's loss.

Other news