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Trump threatens to impose additional tariffs on China

Bloomberg | Updated on July 17, 2019 Published on July 17, 2019

US President Donald Trump   -  REUTERS

Earlier, the US President had complained that China is not ramping up its farm purchases

President Donald Trump reiterated that he could impose additional tariffs on Chinese imports if he wants, after promising to hold off on more duties in a trade-war truce he reached with China’s Xi Jinping last month.

Stocks fell from a record after Trump made the remarks at a cabinet meeting on Tuesday at the White House.

Trump and Xi called a tariff ceasefire and agreed to resume trade talks after meeting at the Group-of-20 summit in Japan, breaking a stalemate that began in May. The U.S. president said he’d hold off on a threat to impose tariffs on an additional $300 billion in Chinese imports, and that Xi had agreed to buy large amounts of U.S. farm goods in exchange. But those purchases have yet to happen.

Read also: China imports from US plunge 31% in June amid tariff war

U.S. shares snapped a five-day rally following Trump’s remarks on Tuesday. Treasury 10-year yields surged earlier in the day after solid economic data added to signs the U.S. expansion is holding up even as central bank officials indicated they’re ready to cut rates.

Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer expect to have another call this week with top trade negotiators in China, and the two may travel to Beijing for meetings if the discussions by phone are productive, Mnuchin said on Monday.

Trump’s resumed pressure on China through tweets this week about the ongoing trade tensions. On Monday, the president indicated that the U.S. tariffs were having their intended impact by squeezing Chinas economy.

China released figures this week showing growth in the world’s second-largest economy slowed to 6.2% in the second quarter, the weakest pace since at least 1992 when the country began collecting the data.

Read more: Chinese economy slides to weakest pace in almost three decades

Meanwhile, Trump last week complained that China wasn’t living up to its promise of increased purchases of American agricultural goods. China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would. Hopefully they will start soon! Trump said on Twitter.

The U.S. expects China to announce significant purchases of from U.S. farmers, Trump’s top economic adviser, Larry Kudlow, told reporters \Monday, implying that the step is necessary for trade talks between two nations to advance.

Published on July 17, 2019
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