President Donald Trump raised pressure on China with a threat to hike tariffs on US$200 billion worth of Chinese goods in a tweet that sent global financial markets swooning on Monday.
Trump’s comments on Twitter came as a Chinese delegation was scheduled to resume talks in Washington on Wednesday aimed at resolving a trade war that has shaken investors and cast gloom over the world economy.
Chinese government officials did not immediately respond to requests for comment.
For 10 months, 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
Trump turned up the heat Sunday by saying he would raise import taxes on US$200 billion in Chinese products to 25% from 10% as of Friday.
The Wall Street Journal, citing unidentified sources, said China’s government was considering canceling this week’s talks. Beijing has responded to previous US threats by saying it wouldn’t negotiate under pressure.Stock markets fell on the news. The future for the Dow Jones Industrial Average lost 1.8% and that for the S&P 500 sank 1.6%. The Shanghai Composite index plunged nearly 6% while the Hang Seng in Hong Kong sank 3.1%. Japan’s markets were closed for a holiday.
Trump had twice pushed back deadlines — in January and March — to raise the tariffs in a bid to buy more time for a negotiated settlement. But on Sunday, Trump, who has called himself a “tariff man,” said he’s losing patience. “The Trade Deal with China continues, but too slowly, as