Trump 'Orders' US Companies to Stop Manufacturing in China

Saturday, 24 Aug, 2019

"China trade situation has intensified, and so has the unrest in Hong Kong, and that might prompt Mr. Powell to be a touch more dovish than he was in late July", said David Madden, markets analyst at CMC Markets in London. "The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP", Trump tweeted.

"Our great American companies are hereby ordered to immediately start looking for an alternative to China".

The White House did not immediately say what authority the president had to compel private firms to quit a country.

Trump also said he was "ordering" UPS, Federal Express and Amazon to block any deliveries from China of the powerful opiod drug fentanyl.

"China's adoption of punitive tariff measures is forced under the pressure of United States unilateralism and trade protectionism", the office said. "While we share the president's frustration, we believe that continued, constructive engagement is the right way forward", the group said.

The levies will range from 5 to 10 percent and will be put in place in two rounds, on September 1 and December 15 - the same dates on which President Donald Trump's latest tariffs on $300 billion in Chinese goods are slated to take effect, the State Council's Customs Tariff Commission said in a statement. Early Friday China said it would retaliate with taxes on $75 billion of USA products along the same timeframe.

The punitive tariffs of 5 to 10 per cent will apply to 5,078 items from the U.S., starting September 1 and December 15, China's state council tariff office said.

Washington labeled China a currency manipulator this month after a sharp slide in the yuan. Divine trade intervention only goes so far, however, toward explaining who is to blame for our current trade war with Beijing that has resulted in billions of losses to us farmers, the American tourist industry and the economy as a whole.

After the news broke, Apple (NASDAQ: AAPL) stock on the Dow Jones Industrial Average was down 1.4% in premarket trading on August 23, and chipmakers Micron Technology (NASDAQ: MU) and Nvidia Corp.

In 2018, BMW exported about 87,000 luxury SUVs to China from a plant near Spartanburg, South Carolina. China insists President Donald Trump's punitive tariffs have to be lifted as soon as an agreement takes effect. -China trade call this week.

"The Chinese side is confident, determined and capable of meeting various challenges and maintaining the sound and stable development of its economy and foreign trade", he added. We do not want to see a further deterioration of U.S.

"In response to the measures by the U.S., China was forced to take countermeasures", the Chinese council said in a statement.

"It is unclear as things stand whether the U.S".

Speaking at a Fed policy conference in Jackson Hole, Wyoming, Powell noted that there's growing evidence of a global economic slowdown and suggested that uncertainty over Trump's trade wars have complicated the central bank's ability to set interest rate policy. This mirrors the timetable the US has laid out for 10% tariffs on nearly $300 billion of Chinese shipments.

China's government appealed to Trump this week to compromise in order to break a deadlock in negotiations.

China would also increase import duties on US-made vehicles and auto parts, the Finance Ministry announced. Carmakers such as Daimler and Tesla had adjusted their prices in China when the auto and auto parts tariffs had been suspended.

"We can't be a market economy and do that", Reinsch said.