Just as the two-year long trade war between the U.S. and China seemed to be nearing the end game, surprise threats by President Trump to increase tariffs yet again has the world in doubt and global stock markets awash in red.
In a pair of tweets Sunday night, President Trump threatened to raise tariffs on $200 billion in Chinese imports to 25% as soon as Friday (May 10th), up from the current 10%. He also wrote that $325 billion in additional Chinese goods remain untaxed, “but will be shortly at a rate of 25%.”
President Trump’s tone shocked many, as these threats come just days ahead of scheduled trade talks between the two countries in Washington. In fact, as recently as Friday, May 3rd, President Trump had cited progress towards a trade deal.
Trade negotiations which were scheduled for May 8th are still on, but speculation about the possible absence of China’s lead official, Vice Premier Liu He, have some worried that a new chess game has begun. It seems that the imminent trade deal the world expected may be far from actualization.
Stay tuned for updates.
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