Economy

Trump's tariffs on $112 billion of Chinese imports kick in

Trump's tariffs on $112 billion of Chinese imports kick in

S&P 500 futures opened 1% lower before paring losses, and Treasury contracts advanced.

Demand for credit has stayed weak as the economy slows and the trade war escalates, but policymakers have remained reluctant to boost credit growth in a major way.

But with prices of many retail goods now likely to rise, the administration's move threatens the United States economy's main driver: consumer spending. -China Business Council, 17 percent of American companies operating in China said they reduced or stopped planned investment in the country in the past year. "When more and more Americans feel the pain, maybe it will be time for Washington to recover rationality".

Negotiations are due to resume this month after a sharp deterioration in the year-long trade war in August.

"We are talking to China, the meeting is still on", Trump said.

"Even as President Trump has indicated that scheduled talks between the USA and China are still to proceed, the market is more and more resigned to a protracted standoff between the two countries and will be looking towards central bank easing to shore up risk appetite", BNP Paribas' Harry Tchilinguirian said. "But we can't allow China to rip us off anymore as a country".

"China's determination to fight against the U.S. economic warmongering has only grown stronger, and its countermeasures more resolute, measured and targeted", according to a commentary by the official Xinhua News Agency after the tariffs kicked in.

Despite tariff hikes, Trump is still optimistic about the ongoing trade talks with Beijing.

Trump said on Twitter in June that Democrat Joe Biden would be "China's Dream Candidate, because there would be no more Tariffs". Trump later raised the new tariff on Chinese goods to a 15 percent rate rather than the initial 10 percent.

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About 90% of California-based JLab Audio's headphones and other wireless products targeted for duties got hit Sunday, possibly hurting holiday sales and forcing a delay in hiring, CEO Win Cramer said.

If China changes its behavior "in a meaningful way in that area. then we will have ended up in a better place".

The tariffs are also harming the global economy.

Last month, Trump said he was increasing existing and planned tariffs by five percent on about $550bn worth of Chinese imports after Beijing announced its own retaliatory tariffs on United States goods.

'For all of the "geniuses" out there, many who have been in other administrations and "taken to the cleaners" by China, that want me to get together with the European Union and others to go after China Trade practices remember, the European Union & all treat us VERY unfairly on Trade also.

Oil prices weakened this morning after new tariffs imposed by the United States and China came into force, raising concerns about a further hit to global growth and demand for crude.

The extra five per cent and 10 per cent tariffs were levied on 1,717 items of a total of 5,078 products originating from the US.

WASHINGTON-President Donald Trump said the trade war with China wouldn't hurt us consumers, after the latest round of tariffs on Chinese imports, which mostly hit consumer goods, went into effect on Sept 1.

Steve Lamar, executive vice president of the American Apparel & Footwear Association, said on Sunday the new tariffs were "just in time for our most important selling season of the year". To take on China, there has to be a multilateral approach.