US tariffs on US$200 billion of Chinese goods officially raised to 25%
The United States has raised the tariffs of US$200 billion worth of Chinese goods as planned on Friday, as trade talks on Thursday made little headway.
The United States (US) has raised the tariffs of US$200 billion worth of Chinese goods as planned on Friday, as trade talks on Thursday made little headway.
Observers had hoped that a resolution could be reached by both sides before the deadline on Friday as a Chinese delegation had arrived on Thursday to negotiate on the trade deal. Tensions were raised after US president Donald Trump shot two sudden tweets on Sunday stating that the US will be raising tariffs on US$200 billion worth of Chinese goods, with claims that the deal has been progressing too slowly.
People familiar with the matter told Bloomberg the trade talks on Thursday made little progress. The trade talks between both parties are expected to continue on Friday.
China's Commerce Ministry had said on its website earlier this week, without elaborating: ‘The Chinese side deeply regrets that if the US tariff measures are implemented, China will have to take necessary countermeasures.’
On Thursday, the US president told a rally in Florida that unless China stops “cheating our workers”, the US will not back down on imposing the new tariffs on Chinese imports.
The tariff spat sent US and Asian markets tumbling on Thursday. The US equity market recovered later in the day after Mr Trump said a deal could be possible this week.
China has been pacifying the US in various attempts to negotiate on a deal.
Commerce Ministry spokesman Gao Feng said on Thursday the decision to send the delegation led by Vice Premier Liu He to Washington despite the tariff threat demonstrated China’s "utmost sincerity".
Mr Trump also said that Chinese president Xi Jinping had sent him a “beautiful letter” and said that he will probably speak to him by phone.
Mr Trump quoted Mr Xi as saying in the letter: ‘Let’s work together let’s see if we can get something done.’
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 24 October 2019.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.