Global financial markets spent most of the day waiting for the shoe to drop. And shortly after 6 p.m. Washington time it did.
President Donald Trump announced a 10% tariff on an additional $200 billion in Chinese exports to the United States. Those tariffs will go into effect in a week, on September 24.
On January 1, Â 2019 the tariff rate on those goods will more than double to 25%.
If China retaliates to these tariffs, President Trump warned, “We will immediately pursue Phase Three, which is tariffs on approximately $267 billion of additional imports.”
I’d assume that the recent prospects of renewed trade talks can now be consigned to the rubbish heap. China had warned that it would turn down the Trump administration’s invitation to renew trade talks if President Trump went ahead with these tariffs.
In his statement today President Trump said, “China has had many opportunities to fully address our concerns. Once again, I urge China’s leaders to take swift action to end their country’s unfair trade practices. Hopefully, this trade situation will be resolved, in the end, by myself and President Xi of China, for whom I have great respect and affection.”
The Chinese and U.S. presidents could meet at this month’s United Nations General Assembly in New York or at the November G20 meeting in Buenos Aires.
