Trump ratchets up tariff talk as key week looms for trade

The Donald Trump administration is for the first time publicly planning for a trade spat that drags into 2019 and possibly beyond

The Donald Trump administration is for the first time publicly planning for a trade spat that drags into 2019 and possibly beyond

These included its Apple Watch, AirPods and components for its various devices.

The move is aimed at pressuring China to change long-standing trade practices that Trump says are hurting United States businesses at a moment when the administration believes it has an advantage in the trade dispute.

In Beijing, China's foreign ministry has already vowed to strike back.

Patel and the ING team say the U.S. Republican Party is likely to lose its majority in the House of Representatives come November, which will make it more hard if-not-impossible for Trump to pass legislation and could even aid a Democrat push to have him impeached.

The president tweeted that his steel tariffs have given "new life" to the domestic steel industry, and that price increases from those and other tariffs have barely been felt in the US economy.

The new taxes will hit a broad swath of products, including billions in Chinese-made voice data receivers, computer memory modules, automatic data processors, and accessories for office equipment such as copiers and bank note dispensers - instantly making widely used goods more expensive.

"The sooner President Xi and President Trump meet to craft a new trade path forward, the better", said Representative Kevin Brady, chairman of the House Ways and Means Committee.

Apple chief executive Tim Cook has pressed the administration to rethink the tariffs due to their impact on American consumers.

"I can't predict the future, but I am optimistic that the countries will get through this", Cook said on a conference call in July.

United States officials hope the risk of economic harm will convince the Chinese government to change its policies.

Altogether about 300 product categories were given reprieves, including some non-tech consumer devices such as bicycle helmets and baby vehicle seats.

China has previously said it would retaliate against the $200 billion round of tariffs by imposing duties on $60 billion of United States goods ranging from liquefied natural gas to aircraft.

The Trump administration said Monday that tariffs would start at 10 percent next week and increase to 25 percent starting January 1.

The tough talk and fear of more tariffs and retaliation rattled investors and sent indexes dropping.

Chinese imports from the United States grew by nearly 500 percent over the past five years, such that as of 2017 Chinese buyers accounted for almost one in every five dollars in USA export revenue.

"After brief hiatus, the trade war theme is back to start a new week", says Mark McCormick, North American head of FX strategy at TD Securities. But several preliminary rounds of talks have yielded no agreement, and Trump has said he was in no hurry to settle the dispute.

When Cohn tried, using data and history, to argue against Trump's conviction that trade deficits with other countries made the United States the loser, the book reports Trump as saying: "I know I'm right". Morgan Stanley researchers estimate that the latest round could reduce economic growth in the United States this year by 0.1 percentage point, adding to another 0.1 percentage-point drag from tariffs now in place. Prime Minister Justin Trudeau defended regulations on the country's dairy market, an issue the USA has signaled it will not be quick to budge on. Economists warn that the effects could grow noticeably larger if Trump follows through with his threat to subject almost all Chinese imports to tariffs.

Last month, Beijing announced plans to place retaliatory tariffs on US$60 billion of American products.

Meanwhile, shares of companies that supply parts to Apple were hit in morning trading in Hong Kong.

The drop came after a strong week for European stocks last week. FIT Hon Teng better known as Foxconn fell 1.8 per cent to HK$3.63 and AAC Technologies Holdings lost 1.9 per cent to HK$76.05.

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