How trade tensions with China are affecting Alabama

Chinese Vice Premier Liu He will travel to the US for trade talks on May 9 and 10 2019

In tweets sent on Sunday afternoon, local time, Trump said he would increase the current 10 per cent tariff on US$200 billion (NZ$303 billion) worth of Chinese goods to 25 per cent on Friday.

The tougher rhetoric from the US on trade surprised investors who had been expecting that the world's biggest economies would come to some sort of agreement. The markets had believed that the two sides were close to an agreement, but US Trade Representative Robert Lighthizer confirmed that Washington is ready to hike tariffs, citing "an erosion in China's commitments". He did not elaborate.

Trump made the comments after Reuters reported that China had backtracked late on Friday on nearly all aspects of a draft trade agreement between the two countries, in a move that threatened to blow up months of negotiations. "China won't shun problems and is honest about continuing talks".

The drop in the Chinese markets was more severe, with the Shanghai Composite Index falling by 6 per cent on Monday and the Shenzhen Component Index plummeting by 8 per cent. Should Trum;p carry through with his threats, stock markets could plunge and markets world wide could react negatively. "Talks are by their nature a process of discussion".

"China has just informed us that they (Vice-Premier) are now coming to the U.S. to make a deal".

Investors and analysts questioned whether Trump's tweet was a negotiating ploy to wring more concessions from China. China has just informed us that they (Vice-Premier) are now coming to the U.S.to make a deal.

Ivanka Trump Cancels Appearance Near Colorado School Shooting
Giasolli said another student lunged at the shooter , giving the other students time to dive under the desks and flee to safety. According to the Douglas County Sheriff's Office (DCSO), authorities have arrested two suspects that are both male students.

However, US Vice President, Mike Pence did warn the media on last Saturday (May 4th), that, Trump would unlikely to leave his stronger stance on Chinese financial policy reform ahead of what appeared to be an endgame for the tariff talks. If tariffs are going to go from 10% to 25% on $200 billion worth of goods, this might only represent an additional cost to the USA economy of about $30 billion (at a new $50 billion, versus a prior $20 billion) using straight-line math.

A delegation from China will be in Washington on Thursday and Friday and Lighthizer said he expected top Chinese negotiator Vice Premier Liu He will attend. Now, U.S. officials have little hope that Liu will come bearing any offer that can get talks back on track, said two of the sources.

On Sunday, Trump said on Twitter he would raise the 10% charge to 25% percent, effective Friday.

It's unclear whether the brinksmanship tactics from the Trump administration will help or hurt the prospects of a deal getting done quickly, something that investors want. It also has retaliated by slowing customs clearance for USA companies in China and delaying issuing licenses in insurance and other industries.

Wall Street initially tumbled following US President Donald Trump's shock tariff threat against China.

"The market was just very complacent thinking a deal would happen", said Sandy Villere, portfolio manager at Villere & Co.

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