Breaking news: Trump hits China with new tariffs
Trump announced an additional 10% tariff on the remaining $300 billion of Chinese imports to the US.
Trump made the announcement in a series of tweets:
Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to........buy agricultural product from the U.S. in large quantities, but did not do so. Additionally, my friend President Xi said that he would stop the sale of Fentanyl to the United States - this never happened, and many Americans continue to die! Trade talks are continuing, and......during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%.....We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!
This came out of nowhere but it turns out the rumors that the talks didn't go well were true.
This is undoubtedly risk-negative and USD/JPY is down to session lows.
Eamonn Javers from CNBC reports, citing a White House official, that the move comes in the wake of an 11:30 am ET meeting this morning at which President Trump got a report from Treasury Secretary Mnuchin and Trade Representative Robert Lighthizer on their meetings in Shanghai this week.
He obviously didn't like what he heard.
