News

President Trump Ratchets Up Tariffs on Imported Goods from China


President Donald Trump said Sunday that tariffs on $200 billion of Chinese goods will increase to 25% on Friday, despite repeated claims by the administration in recent weeks that trade talks with Beijing were going well.

The tariff rate on those goods was originally set at 10%. Trump had initially threatened to increase the tariffs at the start of the year, but postponed that decision after China and the U.S. agreed to sit down for trade talks.

In addition, Trump threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”

The president said that trade talks with China are continuing, but are moving too slowly as Beijing tries to re-negotiate.

Tweet:

Donald J. Trump
@realDonaldTrump

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 billion 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!

The U.S. imports goods from China totaling $539.5 billion and the trade deficit stood at $419.2 billion in 2018, according to the Office of the U.S. Trade Representative. If Trump follows through with his threats, virtually all goods imported from China to the U.S. would face some sort of tariff.

On Friday, Vice President Mike Pence told CNBC that Trump remained hopeful that he could strike a deal with China.

The White House said Wednesday the latest round of talks had moved Beijing and Washington closer to an agreement. Press secretary Sarah Sanders said, “Discussions remain focused toward making substantial progress on important structural issues and re-balancing the U.S.-China trade relationship.”

There had been multiple reports that China and U.S. were close to a trade deal, and an agreement could come as soon as Friday.

Major sticking points between the U.S. and China have been intellectual property theft and forced technology transfers. There has also been disagreement as to whether tariffs should be removed or remain in place as an enforcement mechanism.

The S&P 500 is up more than 17% this year, partly on optimism that a trade agreement with China is coming soon. Apple CEO Tim Cook, for example, said on the company’s earnings call last week that improved dialogue on trade and Beijing’s economic stimulus had improved consumer confidence in the country.

“We certainly feel a lot better than we did 90 days ago,” Cook said.

In January, Apple cut its earnings guidance due in large part to softening demand for iPhones in China.

“If you look at our results, our shortfall is over 100 percent from iPhone and it’s primarily in greater China,” Cook told CNBC at the time. “It’s clear that the economy began to slow there for the second half and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy.”

However, Apple’s stock has rebounded amid White House optimism about a China trade deal. The company’s shares are up 34% year to date.

Source: AgriMarketing

ProAg Quick Links

Agent Toolbox Grower Toolbox Careers

ProAg News

Growers Hope Standards Bring Order to Hemp Industry 'Mess'

Oregon State University's new Global Hemp Innovation Center announced Thursday, coupled with a nascent national review board for hemp varieties and a handful of seed certification programs nationwide, are creating accountability by standardizing U.S. hemp for a global market....

Gapping Coming on California Colored Peppers

Colored peppers will see a gap in supplies out of California. Everything has started later due to the cooler temperatures and rain this Spring and pricing is slightly higher than this same time last year....

Corn Creates Paradigm Shift

DTN's National Corn Index settled at $4.20 on Thursday, the highest level in five years. It may not have peaked, either, said DTN Lead Analyst Todd Hultman. There are a lot of doubts about whether USDA went low enough with its estimate for 1.675 billion bushels of ending stocks for the 2019-20 corn crop....
Get ProAg updates via email
Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now

×