Trump doubles down on threat to impose MORE Chinese tariffs causing stock markets around the world plunge – but Wall Street recovers from 450-point drop and closes 66 points down
- The Dow Jones industrial average dropped 450 points at opening bell
- Worldwide selloff led by tech and industrial sectors came as President Trump threatened new tariffs against China amid stalled trade talks
- A Chinese delegation was scheduled to come to Washington for another round of negotiations this week but the trip was said to be in flux after Trump’s threat
- U.S. president signaled that he was losing patience with Beijing on Sunday
- He halted a promised increase in tariffs when he thought a deal was close
- Announced that tariffs on $200 billion of goods will rise to 25 percent by the end of the work week and he will put those same tariffs on $325 billion of other goods
- Dow recovered but was still 66 points down from its previous close
The Dow dropped 450 points at opening bell on Monday morning as President Trump threatened new tariffs against China amid stalled trade talks.
By closing bell a frenzied sell-off has mostly stabilized, however, and the market closed 66 points down.
Trump signaled that he was losing patience with Beijing on Sunday, having halted a promised increase in tariffs when he thought a deal was close at hand.
He announced that tariffs on $200 billion of goods would rise to 25 percent by the end of the work week and additional tariffs on other goods were in development.
The Dow dropped 450 points at opening bell on Monday morning as President Trump threatened new tariffs against China amid stalled trade talks
Traders work on the floor at the New York Stock Exchange (NYSE) in New York were shocked at the selloff on Monday morning
Recovery: the stock market rebounded to close 66 points down on Monday afternoon
Trump signaled that he was losing patience with Beijing on Sunday, having halted a promised increase in tariffs when he thought a deal was close at hand
Markets around the word reacted negatively to the prospect of more tariffs on key sectors
Trump reiterated his frustration in a Monday morning tweet that said the U.S. will not lose billions to China annually in trade anymore
The U.S. president reiterated his frustration on Monday, saying, ‘The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!’
China’s stock market took a dip as it opened, as well. It’s CSI 300 index took a 5.5 percent hit on the news.
Technology and industrial companies were leading the sell-off on Monday am. Oil prices were also down, with crude futures dropping 26 cents to $61.68 a barrel.
The Dow Jones Industrial Average had recovered and was down to less than a 1 percent drop at 250 points a little more than an hour after opening bell.
In a late April interview with Fox Business host Maria Bartiromo, the U.S. Treasury Secretary Steve Mnuchin said Trump is confident that his tariffs will lead to a deal.
‘The president is determined, and tariffs have been a big part of getting people to the negotiating table,’ he said.
President Trump was coasting Monday morning on the positive economic outlook for the United States, as reflected in a Friday jobs report that boasted a 3.6 unemployment rate. A week prior, U.S. GDP for the first quarter clocked in at 3.2 percent.
He said the opposing party will not be successful if it moves forward with impeachment, based on his economic record, in spite of the worldwide stock selloff connected to his rage-tweeting at China.
Chinese officials were reconsidering a trip to Washington this week for trade talks, CNBC reported, as they decided how to respond to Trump’s adjusted schedule for tariffs.
Trump said in Sunday tweets, while the markets were closed, that he’s raising tariffs on a long list of Chinese goods from 10 percent to 25 percent on Friday, as he put pressure on Beijing to sign-on to an agreement.
‘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,’ he tweeted.
He said that $325 billion of other, Chinese goods remain untaxed now, but they won’t stay that way for long.
‘Additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%,’ he announced. ‘The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!’
The threat received support from a political foe of Trump’s: New York Democrat Chuck Schumer, who was otherwise tweeting about Trump’s attempts to thwart special counsel Robert Mueller
The threat received support from a political foe of Trump’s: New York Democrat Chuck Schumer, who was otherwise tweeting about the Republican president’s attempts to thwart special counsel Robert Mueller.
‘Hang tough on China, President,’ Schumer said in a tweet. ‘Don’t back down. Strength is the only way to win with China.’
His support for Trump’s approach to China stood in contrast to Democratic frontrunner Joe Biden, who said last week that the world’s second largest economy is ‘not competition’ to the United States and claims that Beijing is going to ‘eat our lunch’ are totally overblown.
Sen. Bernie Sanders, another high-polling Democratic presidential contender, said Biden is ‘wrong’ and China has taken 3 million jobs from U.S. workers.
Secretary of State Mike Pompeo said Sunday that
He seems a little disconnected from the reality that is China today. Maybe when he ran for president the first time this was the situation. But it’s certainly not today. China poses an enormous challenge to the United States of America.
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