Explained: Fresh threat of US-China trade war, & its effects on India

Explained: Fresh threat of US-China trade war, & its effects on India

Trump was reacting to the developments when he threatened Sunday to raise import taxes on $200 billion worth of Chinese goods to 25 percent from 10 percent this Friday.

Reuters, citing USA government and private-sector sources, reported on Wednesday that China late last week had backtracked on nearly all aspects of a draft trade agreement, threatening to blow up the negotiations. -China trade dispute, to the talks.

The USTR has formal trade figures from 2018 (or most recent annual data) concerning US and Chinese trade facts.

Trump's new tariff announcements have tanked stock markets worldwide as investors, like anxious U.S. farmers and businesses, had been banking on a resolution to the year-long conflict that has engulfed $360 billion in two-way trade.

U.S. President Donald Trump waves during joint statements with China's President Xi Jinping at the Great Hall of the People in Beijing, China, November 9, 2017.

VideoA stock sell-off continued on Tuesday as investors continued to worry that trade talks between the US and China are in danger of falling apart after words by the Trump administration this week appeared to threaten additional tariffs. Nevertheless, US Treasury Secretary, Steven Mnuchin alongside trade representative Lighthizer had also expressed optimism over reaching a trade deal as early as this weekend. The move came after China backtracked on virtually all of the major parts of a trade pact being negotiated with Washington, Reuters reported on Wednesday. Markets had expected a U.S.

They will only hit goods that depart from China starting on Friday.

"Both the premier of China and the president of the United States want to come across that they prevailed and didn't give in", he said.

"We maintain Chinese society should strongly support our country's strategy at this time; whatever happens, we are together with our country", it said.

Against the yen, the dollar fell 0.1 percent to 110.13 yen for its fourth-day of losses against the Japanese currency and just off a near six-week low of 110.09 yen brushed earlier in the session.

"Given the harsher words coming out of D.C., there was some talk that Beijing would cancel the Chinese delegation's trip ... but it is going forward as planned", Rivers said Tuesday on CNN's "New Day".

Trump said Wednesday that China indicated it hopes to "make a deal" when senior Chinese officials visit Washington for negotiations Thursday and Friday.

Beijing's top trade negotiator, Liu He, is traveling to the USA on Thursday and Friday for high-stakes talks. The goals behind seeking this trade deal have not really been about the short-term performance of the stock market, and the president has indicated in the past that there can be some acceptable giveback, considering how much the market has risen over the past two years.

The trade tensions have also rattled financial markets, jeopardising a U.S. stock market rally that Mr Trump sees as a vote of confidence in his economic policies.

The euro zone will rebound next year from a slow-down in 2019 and unemployment will fall further, but inflation is likely to stay at this year's levels and below the European Central Bank's target, the European Commission said on Tuesday.

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