Putting 10% tariffs on Chinese goods as of September 1
As President Donald Trump announced in a tweet, imposing a 10% tariff on Chinese goods is going to start from early September.
This bombshell news circulated exactly after U. S. and China’s talk in Shanghai this week. The White House had mentioned before the Trump tweet that the meetings were useful and China confirms its commitment augment purchases of US agricultural exports.
President Donald Trump declared on Twitter that the ”trade talks are continuing, and during the talks the U.S. will start, on September 1st, putting a small additional tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our country. We look forward to continuing our positive dialogue with China on a comprehensive trade deal, and feel that the future between our two countries will be a very bright one!”
The White House said before this Trump tweet that commitment to increase purchases of US agricultural exports is confirmed by China and consultations will resume again in early September; while these negotiations were the first in-person trade talks after a G-20 truce.
This surprise news reduced Dow Jones Industrial Average to as much as 304 points on Thursday. Nevertheless, it is nebulous what changed Trump’s decision to continue the trade war cease-fire and caused him to end that.
These two economics giants have been in the battle for more than a year and a half, and now Trump has agitated the market climate by speculating that it may raise tariffs on $200 billion of Chinese goods from 10% to 25% in May. In response to Trump, China immediately said that there will be no trade unless the existing duties are maintained.
Chinese purchases of US agricultural products remains a big sticking point in the bilateral trade dispute.
According to Trump on Thursday, China had accepted to buy in large quantities, but it did not; while China insisted millions of tons of soybeans were received from the U.S. on July 19. The Chinese state media Xinhua also stated that many Chinese companies have made orders for American cotton, pork, and sorghum.