Negotiators working on the trade deal between the U.S. and China may have through they had Sunday off. A series of tweets ending that. President Donald Trump has become unsettled by the pace of the negotiations. And, he has threatened to up the ante to force China to the table on terms he believes are necessary to avoid a trade war
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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. 325 Billions Dollars….
11:08 AM – 5 May 2019
4h4 hours ago
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. 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 trade wars with China, now decades old, have been particularly heated over the course of the Trump presidency due to his willingness to impose threaten large tariffs and then to impose them quickly to put economic pressure on the Chinese. While there is little direct proof this has worked, many economists believe that it has started to slow the Chinese manufacturing economy. Higher tariffs could, if so, pressure Chinese PMI and GDP numbers more.