“Wall Street is set to open lower on Friday as President Donald Trump said there’s ‘absolutely no need to rush’ on a trade agreement with China and tariffs will make the United States ‘much stronger,'” CNBC reports. “Futures on the Dow Jones Industrial Average fell about 120 points Friday morning, implying a lower open of about 113 points. The S&P 500 and Nasdaq were also set to open lower.”
“Trump signaled in a Twitter post Friday morning he could stick with China tariffs for a long period of time,” CNBC reports. “The comments came after he slapped higher tariffs — from 10% to 25% — on $200 billion worth of Chinese goods.”
“There’s still hope that the U.S. and China could hatch a deal, however,” CNBC reports. “‘A ‘grace period’ was included on these tariff increases, so that goods currently in transit to the U.S. from China aren’t subject to the new 25% tariffs, just the old 10% tariff,’ Tom Essaye, founder of Sevens Report, said in a note on Friday. ‘That grace period was not included in previous rounds of tariffs and is likely an olive branch of sorts to the Chinese side. Given shipping times, goods sent from China today will take two weeks or so to reach the U.S., so if a trade deal is stuck in that time frame, the pain of the 25% tariffs will never be felt,’ he added.”
Talks with China continue in a very congenial manner – there is absolutely no need to rush – as Tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars worth of goods & products. These massive payments go directly to the Treasury of the U.S….
— Donald J. Trump (@realDonaldTrump) May 10, 2019
Tariffs will make our Country MUCH STRONGER, not weaker. Just sit back and watch! In the meantime, China should not renegotiate deals with the U.S. at the last minute. This is not the Obama Administration, or the Administration of Sleepy Joe, who let China get away with “murder!”
— Donald J. Trump (@realDonaldTrump) May 10, 2019
Read more in the full article here.
MacDailyNews Take: Again, as we’ve said throughout: No pain, no gain. Short-term pain leads to longterm gain.
We continue to expect the two sides to reach a trade deal eventually, but this is unlikely to happen in the short term as the war is not painful enough for either side. — Zhiwei Zhang, Deutsche Bank’s chief Asia economist, in a note to clients on Friday
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
SEE ALSO:
China overplayed its hand with U.S. President Trump on trade, and it could cost them dearly – May 9, 2019
Apple CEO Tim Cook optimistic about U.S.-China trade talks – February 12, 2019
President Trump says U.S. doing well in trade negotiations with China – January 23, 2019
China’s 2018 growth slows to 28-year low, more stimulus seen – January 22, 2019
Apple CEO Tim Cook: I’m very optimistic about U.S.-China trade talks – January 8, 2019
Advisor to President Trump: Apple’s sales should pick up when U.S.-China strike trade deal – January 3, 2019
Here we go!
https://m.youtube.com/watch?v=NQL-q0wmzSM&feature=youtu.be
Haste makes waste.
Take your time President Trump and get it does right, fixing decades of weak leadership on this front, previous administrations who SOLD OUT the American worker!
If you think retweeting an economically illiterate con man somehow bolsters your selfish and immature worldview, you are mistaken. When China strikes back with tariffs aimed precisely at Trump’s base, you’ll see how well US farmers — many currently receiving federal assistance, we should note — are able to weather the oncoming storm.
2016 Candidate Trump:
“I don’t blame China” for trade imbalances.
“You can win against China if you’re smart. But our people don’t have a clue. We give state dinners to the heads of China. I said why are you doing state dinners for them? … Just take them to McDonalds…”
“I’ll take jobs back from China. I’ll take jobs back from Japan. The Hispanics are going to get those jobs, and they’re going to love Trump.”
“Free trade is terrible. Free trade can be wonderful if you have smart people. But we have stupid people.”
“We won with poorly educated. I love the poorly educated.”
First, did you know that US agricultural exports fell to $5.9 billion in 2018 from $15.9 billion in 2017? That’s a 62% decrease. Trump’s latest sabre rattling will bleed the agricultural heartland dry.
I wonder if short term pain will be short enough for those on fixed incomes 🙂
What a brat!
As First 2014, then 2016 like it… All those farmers… with the help of mexicans…
What a great oxymoron President.
Shows how delusional this guy is:
“Your all time favorite President”
He has the worst rating ever for a president.
https://en.wikipedia.org/wiki/United_States_presidential_approval_rating
What an idiot
You lie.
Fact: Gallup Poll, May 2019, Trump Approval Higher Than Obama’s At Same Point in Presidency
You’re bragging about one cherry picked poll that gives Trump a 46% approval rating for the first time? Also from your article: “Trump’s approval has been with 35 to 46 percent throughout his presidency—a relatively small range.”
If you bothered to look at the full spectrum of polling, you’d see the nation gives the con man about a 42.4% approval rate. 52.7% disapprove of him according to 538.
https://projects.fivethirtyeight.com/trump-approval-ratings
The trend for 2019 is not improving for Trump, especially as foreign policy clouds gather and the economy teeters on the brink of a self-created downturn.
MAGA BABY! Bout time we got a president with some balls!
Golf balls. I would prefer a president with some brains.
MDN uses Marketwatch for its stock ticker, which is now flowing red. They should start reading the rest of the articles the site offers, like this one:
https://www.marketwatch.com/story/heres-the-hit-us-chinese-and-global-economies-could-face-as-trade-battle-heats-up-2019-05-09
Or this one:
https://www.marketwatch.com/story/the-group-losing-faith-in-a-quick-china-trade-resolution-the-farmers-drained-by-lost-exports-2019-05-09
Or this one:
https://www.marketwatch.com/story/heres-all-the-stuff-the-us-imports-from-china-thats-causing-a-huge-trade-deficit-2018-03-23
Having a President who is willing to deal with Chinese trade imbalances among other Issues with China is vital to the long term economic stability of the United States. Having a President willing to take a hit in popularity when it understandably proves to be a fight is outstanding. Having a equitable trade agreement with China going forward into the foreseeable future rather than kicking the same old problems down the road to the next guy is why this has to happen and why previous administrations were essentially to cowardly to take China on. First get the economy running on all eight cylinders, get unemployment down to record levels, then deal with China from a position of strength.
Yeah. Well done once again Mr. President. I have to admit, you’ve surprised even me.
Having a President who is willing to deal with all international trade PRACTICES, not perceived imbalances that are used as a political talking point, would be dramatically better. Trump is the very definition of unstable.
The long term vitality of the US depends much more on its investment in decreasing debts, educating its citizens, maintaining its infrastructure, supporting global peace, and keeping America open for business.
All those areas Trump has kicked down the road or is actively acting against the good of the people.
The “deals” Trump struck with North Korea and Iran show what a hash he has made of international relations. Now the US is using a broken stick alone to combat China. Trump’s “my way or the highway” approach has yielded no results so far, but feel free to deceive yourself that America is greater now.
What has he actually accomplished besides the tariff?
Attempted single party rule in all branches of govt. Like that ever ends well!