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President Donald Trump on Monday doubled down on harsh trade rhetoric towards China, sending U.S. markets sharply lower as investors saw a return of tensions between Beijing and Washington.
NO MORE ‘LOSING’ TO CHINA
A day after tweeting a threat to increase tariffs on $200 billion in Chinese imports to 25% from 10%, and to slap 25% tariffs on an extra $325 billion in imports, Trump vowed to shrink the U.S. trade gap with China.
“With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!”, the president said. The U.S. actually ran a $419 billion deficit in goods with China in 2018[1], despite efforts by the administration to reduce the gap.
Now see: Why the U.S.-China trade deficit is so huge: Here’s all the stuff America imports[2].
Reignited worries over a trade brawl pushed the Dow Jones Industrial Average DJIA, -0.52%[3] and other U.S. stock benchmarks lower Monday, with the Dow off about 200 points midday after opening 471 points lower.
Also read: With Trump threatening to tighten the trade screws, here’s a look at what tariffs have done so far[4].
ABE CALL AFTER NORTH KOREA MISSILE TEST
Trump said he’d spoken with Japanese Prime Minister Shinzo Abe about North Korea and trade, after Pyongyang’s state media confirmed a Saturday-morning short-range missile launch.
“The two leaders discussed recent developments on North Korea and reaffirmed U.S.-Japan unity in how to achieve the final, fully verified denuclearization of the Democratic People’s Republic of Korea,” a White House statement said.
The Trump administration had earlier played down the threat presented by North Korea’s latest weapons threats and said it was eager for nuclear talks to resume.
Read: Trump administration plays down latest North Korea missile test[5].
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References
- ^ a $419 billion deficit in goods with China in 2018 (www.marketwatch.com)
- ^ Why the U.S.-China trade deficit is so huge: Here’s all the stuff America imports (www.marketwatch.com)
- ^ DJIA, -0.52% (www.marketwatch.com)
- ^ With Trump threatening to tighten the trade