Published: Sun, September 01, 2019
Worldwide | By Lisa Hogan

U.S. doesn't have a 'tariff problem', it has 'a Fed problem'

U.S. doesn't have a 'tariff problem', it has 'a Fed problem'

President Donald Trump on Friday denied his trade wars were harming the United States economy, instead lashing out the Federal Reserve and poorly run American companies.

US President Donald Trump has warned China that its economy will suffer if it does not make concessions in trade negotiations.

China said it hopes "to create necessary conditions" to return to trade negotiations with the US, according to Reuters.

The US plans to launch a 15 percent tariff on about US$110 billion in apparel, footwear and other Chinese imports today, with same duty on the balance of nearly US$300 billion in toys, phones and laptops and other products delayed until December 15.

Also at midnight, Chinese retaliatory tariffs between 5% and 10% go into effect on a portion of $75 billion worth of United States goods.

The trade dispute between the world's two largest economies boiled over in July 2018 into tariffs on hundreds of billions of dollars' worth of each other's goods and now threatens to engulf all U.S.

Washington has already slapped tariffs on $US250 billion worth of Chinese goods, to which China has retaliated with duties on $US110 billion worth of USA imports.

"Badly run and weak companies are smartly blaming these small Tariffs instead of themselves for bad management", he tweeted.

"Over the short term, the trade war is indeed hurting American companies", Allen said.

The survey, taken in June before Trump's call for companies to quit China, showed a majority of USA companies remained committed to the China market and few were divesting existing operations.

Craig Allen, president of the council, said he didn't interpret Trump's tweet as pushing American companies that serve the Chinese market domestically to leave the country.

For the Republican senator, however, his constituents haven't reached to the political threshold where they would say: "I voted for Trump but I'm done with him now".

"Tariffs are painful and they are a double-edged sword", he said in a critical tone. "It's hard at this stage to see how there can be a deal or at least a good deal", said Julian Evans-Pritchard, senior China economist at Capital Economics.

"Because of what I'm doing with trade that's really keeping down the temperature", he stated on the White Home. The relationship between the US and Chinese governments has soured since, with on-again, off-again negotiations that have created uncertainty for investment plans.

A fresh set of tariffs are set to be imposed on Chinese products on September 1. "But I say it to China directly, because of the tariffs we're in an incredible negotiating position and we happen to be taking in billions and billions and billions of dollars".

Investors were cheered by the message, with the Dow rising 297 points, or more than 1%, to 26,333, as USA markets opened for trading and the S&P 500 and Nasdaq also climbing.

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