US President Donald Trump said Beijing ordered US companies to leave China after Beijing announced a retaliation tariff on the US $ 75 billion. Trump said on Twitter that he would release an answer to China's latest tariff plan on Friday afternoon. One White House official said the president was meeting with the trade team at noon, according to Reuters.
US has made and stolen from China
We don't need China, and frankly it would be much better without it. Each year, for decades, the massive amount of money the US has made and stolen from China will have to stop, ”Trump tweeted. Our great American companies were ordered to immediately start looking for alternatives to China, including bringing you home and making products in the United States. It is not clear what legal authority Trump can use to force US companies to close their business or stop supplying their products in China.
The president said he is also ordering shippers, including FedEx. Amazon.com Inc, UPS, and US Postal Services retrieve and reject all shipments of opioid fentanyl to the United States. China said Friday it would impose retaliatory tariffs on US goods worth $ 75 billion. The most recent salvo was in response to Trump's plan to impose a 10% tariff on the final $ 300 billion list of Chinese consumer goods, including mobile phones, toys, laptop computers and clothing, on September 1 and December 15.
On the same day, the Commerce Department said it would impose additional tariffs of 5 or 10 pcs on a total of 5,078 products produced in the United States, including produce such as beans, beef, pork, and small aircraft. Beijing also suspended tariffs on US-China trade in December, resuming tariffs on auto and auto parts originating in the United States.
The State Department said in a statement that "China's decision to enforce additional tariffs was decided by US unilateralism and protectionism. US stocks plummeted on fears that the expansion of the trade war could put the economy in recession. The tech-rich Nasdaq Composite fell 2.2pc, the S & P 500 index fell 1.8pc and the Dow Jones Industrial Average fell 1.7pc. Treasury yields also fell as investors searched for safe assets.
US crude futures fell more than 3pc
White House trade adviser Peter Navarro neglected China's tariff threat on the US economy by telling Fox Business Network that US-China trade talks will continue in September. On Thursday, the White House economic adviser Larry Kudlow said a second round of US-China trade talks is underway this week. But so far neither seems to be ready to make the necessary compromises to end the nearly 14-month trade war.
Long-term disputes have raised concerns about the global recession, shaking investor confidence and urging central banks around the world to loosen their policy in recent months. In an interview with CNBC, Loretta Master Cleveland Reserve Bank of China said that it looked at China's retaliation tariffs as "continuous" of the harsh trade policy uncertainty that began to weigh on US business investment and sentiment.
Agriculture hits the automotive sector
The ripple effect of the US-China trade dispute was the main reason for the Fed's move to cut interest rates for the first time in 10 years last month. I'm not sure if the US-China trade negotiations will continue as planned in early September," said Agate Demarais, global forecast director for the Economist Intelligence Unit. To see if the Fed Chairman Jerome Powell will respond to these developments by accelerating rate cuts, all eyes will now rely on the Fed.
Speech Powell said the US central bank would “act appropriately” to keep the economy healthy, but did not say how quickly it could cut interest rates. Among US goods targeting Beijing's latest tariffs, from September 1, there are China beans with an additional 5pc tariff, plus 10pc tariff to American beef and pork. China is also resuming an additional 25pc tariff on US-made vehicles and 5pc tariff on auto parts that were discontinued earlier this year.
Automakers such as Daimler and Tesla have adjusted their prices in China when the tariffs on auto and auto parts stopped. Ford, China's net exporter, said in a statement that it encouraged the United States and China to find a short-term solution. The company said, “It is essential that these two major economies work together to develop balanced fair trade.
At the last minute
The United States has caught Iran's tankers and is preparing to leave Gibraltar after several weeks in detention, and suspected of leaving on Saturday, prolonging diplomatic invasion between Tehran, London and Washington. The US Justice Department claimed that the ship was designated a foreign terrorist organization by Washington as part of a plan to "unlawfully access the US financial system to support illegal shipments from Iran to Syria by the US Islamic Revolutionary Guard Corps.
There was no opinion of the British or Gibraltar, overseas territories. The detention order must ultimately be given at the Gibraltar Supreme Court. So far that has not happened and the ship can still sail freely. Richard de la Rosa, managing director of ship transporter Astralship, told AFP that the vessel was preparing to depart. She will go in the next two days," she said. We are making changes to the crew. She needs some reprovisioning, ”he said.
Violation of Sanctions
Gibraltar seized the vessel on suspicion that the relationship between Tehran and London had sharply deteriorated by transporting oil to Syria on July 4 in violation of European Union sanctions. Iran refused. After that, Iran detained the British tanker Stena Impero in a heartbreaking move. On Thursday, the Supreme Court of Gibraltar ordered oil tankers after announcing that Britain's overseas territories had received Iran's guarantee that probation 1 would not be directed to EU sanctioned countries.
But at the last minute of Friday, the US in relation to Iran issued a warrant. It is said that all vessels and their oil will be confiscated in violation of US sanctions. It also cites bank fraud, money laundering and violations of terrorism laws. The State Department also threatened to issue a visa ban to anyone working on the ship.
Ships released on thursday
US movements that failed after trying to stop the release of tankers on Thursday. July 4 broke out with tensions in the Gulf region after Iran's attacks on small tankers. Quoting threats to Tehran's US allies, the United States expanded its military presence in the region with new aircraft carrier task forces, missile batteries, and strategic bombers. Iran called Grace 1's detention a "illegal blockade" by the US, and Washington praised it as "good news.
Tehran's relations with Washington have been at a low level since President Donald Trump withdrew his unilateral sanctions last year after he withdrew from a major nuclear deal between major powers and Iran. On Friday, Iranian officials said the tanker is preparing to sail under the Iranian flag and will be renamed Adrian Daria for sailing. Tehran also denied that the ship had no promise of destination.
Foreign Ministry spokesman Abran Mousavi said, "Iran did not promise that Grace 1 would not go to Syria. The tanker's destination was not Syria. Even if it was, nobody was worried," Gibraltar insisted. Fabian Picardo, senior vice president, said Gibraltar had lost about $ 140 million worth of crude oil from the Syrian Bashar al-Assad regime.