Tag: Trump trade war

A Gyrating Economy, and Trump’s Volatile Approach to It, Raise Alarms

New York Times logoBIARRITZ, France — President Trump has again tossed out the economic and political playbook that guided other occupants of the Oval Office for generations as the United States dominated the flow of goods and services across the world.

In the space of a few hours, he declared that his own central bank chief was an “enemy,” claimed sweeping powers not explicitly envisioned by the Constitution to “order” American businesses to leave China and, when stock markets predictably tumbled, made a joke of it.

Mr. Trump’s wild and unscripted pronouncements on Friday renewed questions about his stewardship of the world’s largest economy even as he escalated a trade war with China before heading to France for a high-profile summit with the leaders of many of the world’s other major industrial powers.

View the complete August 23 article by Peter Baker on The New York Times website here.

Trump Says He Will Raise Existing Tariffs on Chinese Goods to 30%

New York Times logoWASHINGTON — President Trump said he would increase taxes on all Chinese goods and demanded that American companies stop doing business with China as his anger toward Beijing and his Federal Reserve chair boiled over on Friday.

Twelve hours after China said it would retaliate against Mr. Trump’s next round of tariffs by raising taxes on American goods, Mr. Trump said he would bolster existing tariffs on $250 billion worth of Chinese goods to 30 percent from 25 percent on Oct. 1.

And he said the United States would tax an additional $300 billion worth of Chinese imports at a 15 percent rate, rather than the 10 percent he had initially planned. Those levies go into effect on Sept. 1.

View the complete August 23 article by Alan Rappeport and Keith Bradsher on The New York Times website here.

Trump retaliates in trade war by escalating tariffs on Chinese imports and demanding companies cut ties with China

Washington Post logoPresident Trump demanded U.S. companies stop doing business with China and announced he would raise the rate of tariffs on Beijing Friday, capping one of the most extraordinary days in the long-running U.S.-China trade war.

By the end of the trading day, the Dow Jones industrial average had fallen 600 points, or nearly 2.4 percent; the business community had ratcheted up criticisms of the president; and world leaders descending on the Group of Seven summit in France were confronted with the prospect of a global slowdown, triggered by a trade war with no end in sight.

The combination of events nearly eclipsed a Twitter tirade in which Trump questioned whether the Federal Reserve Chair Jerome H. Powell was an “enemy” of the U.S.

View the complete August 23 article by Jeff Stein, Taylor Telford, Gerry Shih and Rachel Siegel on The Washington Post website here.

Conservatives push Trump tariff relief over payroll tax cuts

The Hill logoThe best way for President Trump to boost the economy would be to roll back tariffs, not push for a payroll tax cut, according to right-leaning analysts and conservative groups.

Trump has made conflicting remarks this week about his desire for a payroll tax cut amid increased warning signs of a looming recession. His most recent position is that he’s not currently looking at it.

Economists and right-of-center groups argue that now is not the time to pursue a reduction in payroll taxes, mainly because that kind of tax cut wouldn’t fix the economy’s trouble spots.

View the complete August 23 article by Naomi Jagoda on The Hill website here.

China announces new tariffs on $75B in US goods

The Hill logoChina announced Friday it will impose tariffs on $75 billion worth of U.S. goods, the latest salvo in the year-plus trade war between the world’s two largest economies.

The country’s State Council said tariffs of 5 percent to 10 percent will be imposed on a variety of American goods in two batches, with the first going into effect next month and a second scheduled for December, multiple media outlets reported, citing state-run media.

The second batch of tariffs will reportedly include a 25 percent tariff on all U.S. automobiles.

View the complete August 23 article by John Bowden on The Hill website here.

Manufacturing sector contracted for the first time since 2009, data show

Washington Post logoThe decline is a sign that manufacturers are starting to feel the effects of the ongoing trade war.

The prolonged trade war between the United States and China is taking a toll on the manufacturing sector, which contracted for the first time since 2009, data show.

The U.S. manufacturing purchasing managers’ index (PMI) fell to 49.9 in August from 50.4 in July, according to IHS Markit. It is the first time the closely watched indicator has fallen below 50 since September 2009.

The decline is a sign that manufacturers are starting to feel the effects of the ongoing trade war. Sales of U.S. exports decreased at the fastest pace since August 2009, according to the report. When exports fall, manufacturers typically respond by reducing inventories and cutting production. Over time, that gloominess could lead manufacturers to trim jobs.

View the complete August 22 article by Jonnelle Marte on The Washington Post website here.

Del Monte Foods plans to close southern Minn. plant, affecting more than 360 workers

Del Monte Foods has told state officials it plans to close its peas and corn packing plant in Sleepy Eye, Minn.

The California-based company says layoffs of more than 360 employees will begin around Oct. 21 after the current packing season and last through the first half of 2020.

Del Monte says the action will affect 69 full-time and 294 seasonal employees. The Sleepy Eye facility was established in 1930.

View the complete August 20 article by the MPR News Staff and Nina Moini on the MPR News website here.

Minnesota farmer tears up while telling CNN how Trump’s ‘very scary’ trade war has harmed her family

AlterNet logoA farmer from Minnesota got emotional during a CNN interview on Thursday when she discussed how President Donald Trump’s trade war has done major harm to both her livelihood and her family.

Speaking with CNN’s Vandessa Yrukevich, farmer Cindy VanDerPol said that she doesn’t know how to tell her children that they should follow in her footsteps to run her family’s farm when the current market for crops is so bleak.

“It’s very scary,” she said. “And I sometimes stay up at night worrying about what the future does hold. You know, what do you tell your children that want to farm? Do you tell them go find something else to do? One of our sons already has.”

View the complete August 15 article by Brad Reed from Raw Story on the AlterNet website here.

Stocks fall as bond market signals recession

The Hill logoStocks sank sharply Wednesday morning after the U.S. bond market signaled an impending recession.

The Dow Jones Industrial Average, S&P 500 and the Nasdaq composite all dropped more than 1 percent as trading opened Wednesday, with shares of banks leading the losses.

The sell-off came shortly after the yield on 10-year U.S. Treasury bonds fell below the yield on two-year bonds for the first time since 2007. When 10-year bonds trade cheaper than 2-year bonds, a recession tends to follow within 12 to 18 months.

The Dow dropped more than 700 points, a 2.7-percent decline, shortly after 1 p.m. The S&P had fallen 2.7 percent, while the Nasdaq had lost 3 percent in that time.

View the complete August 14 article by Sylvan Lane on The Hill website here.

Trump finally acknowledges his tariffs could hit consumers

Washington Post logo‘We are doing this for the Christmas season,’ Trump said as he announced a delay on his latest import taxes

President Trump has repeated the same mantra for months: The Chinese are paying the full price of his tariffs. It’s a line that the overwhelming majority of economists and business owners say is false, but Trump kept saying it — until Aug. 13.

The White House announced Tuesday that the president’s latest tariffs on China would be delayed on many popular items like cellphones, laptops and strollers. The 10 percent tax would not go into effect until Dec. 15, effectively ensuring retailers can import goods for the holidays before the tariffs take effect.

Trump himself told reporters the delay is to ensure consumers don’t face higher costs this Christmas. Here are his full remarks:

View the complete August 13 article by Heather Long on The Washington Post website here.