Trump ratchets up trade war with new tariffs on Chinese imports

01 Août, 2019, 21:36 | Auteur: Auguste Feret
  • Donald Trump

US and Chinese negotiators ended two days of talks in Shanghai on Wednesday with little sign of progress, although both countries described the negotiations as constructive.

The new tariff will be imposed beginning September 1, he said in a tweet.

Large purchases, however, are not expected as China's hog herd, the largest consumer of the soybean meal produced from raw beans, has been decimated by the deadly African swine fever.

Stock markets were alarmed at the announcement, with the Dow Jones Industrial Average (DJIA) dropping 130 points within minutes, wiping out all of the day's gains and venturing into negative territory.

The U.S. government is prepared to implement tariffs on another $300 billion worth of goods from China as negotiations between the world's two largest economies sputter.

It was the first new soybean purchase by China since a 544,000-tonne sale was announced in late June, and the first since Beijing offered to exempt five private crushers in the country from 25-percent import tariffs on USA beans arriving by the end of the year.

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On Wednesday, Trump warned China that it will get "a much tougher" trade deal if it keeps stalling the talks until the 2020 presidential election in the US. The negotiations were expected to resume in Washington in September, though exact dates were not announced.

The new tariff is on top of the $250 billion in Chinese imports already taxed at 25 percent, Trump clarified.

The president said China chose to renegotiate the deal before signing, and had agreed to buy more agricultural products from the US - but has not yet done so.

The world's two biggest economies are locked in a trade war over US allegations that Beijing uses predatory tactics - including stealing trade secrets and forcing foreign companies to hand over technology - in a drive to overtake American technological dominance.

State-run Chinese media called the Shanghai talks "pragmatic".



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