The US President Donald trump has announced an increase in duties on Chinese goods by 25% this Friday. Trump noted that the trade negotiations with Beijing failed, so he made the decision, writing on Twitter:
«Within 10 months, China is paying US tariffs of 25% on $50 billion in high technology and 10% on $200 billion for other products. These payments are part of what helped us get our significant economic results. 10% increase to 25% on Friday. It’s still $325 billion … for many years, the United States is losing $600-800 billion a year in transactions. With China, we lose $500 billion We’re not going to do it!»
For 10 years, 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
Plans of raising tariffs was discussed at the White house and Congress repeatedly, but the decision was postponed in the hope for successful negotiations with the Chinese side. The last time this topic was raised in February when U.S. trade representative Robert Lighthizer told Congress that the United States is not want to increase the tariff rate to 25%, because the parties are close to conclusion of the transaction. Several times expressed positive opinions on the prospects of the deal and trump.
flickr.com/Tim/CC
The nearest round of talks was scheduled for this Wednesday, two days before the announced entry into force of the new tariff. Now, however, the Chinese foreign Ministry took a break and has not yet confirmed media fact future contacts. «The risk of full-blown trade war is growing, — said Bloomberg, Chua HAK Bin, a senior economist at Maybank Kim Eng Research Pte. in Singapore. — The threat of a trump could backfire, because China does not want to negotiate «under the gun»».
U.S. futures and stock markets in Asia dropped, oil prices fell and the Chinese yuan weakened as trade tensions between China and the U.S. escalated https://t.co/jA5N1Lo84i
— The Wall Street Journal (@WSJ) May 6, 2019
Stock exchange on the news from trump reacted to a significant decrease in most of the main quotes. On the morning of 6 may, Hong Kong’s Hang Seng lost 3.7%, Shanghai Shanghai Composite — 5%. In the night of Monday before the opening of trading the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite lost about 2%. Decreased not only the oil and the yuan, but the futures on cotton, corn and many other products.
During the day the index was partially won back falling, but not to the end. Worry stock traders may have added another military trials in North Korea, and General signs of instability in the Asia-Pacific region.
