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China-US trade: China vows speedy action on trade commitments
07 December 2018, 12:23 | Vera Richards
Stocks plunge amid confusion over U.S.-China trade truce
-China agreement in Buenos Aires as an historic breakthrough that would ease trade tensions and potentially reduce tariffs.
Failure would raise the specter of a major escalation in the trade battle, with fresh USA tariff action and Chinese retaliation possibly as early as March.
U.S. President Donald Trump, Secretary of State Mike Pompeo, national security adviser John Bolton and Chinese President Xi Jinping attend a working dinner after the G20 leaders summit in Buenos Aires, Argentina, on December 1, 2018.
Kudlow also said the goal was to eliminate all tariffs on any imports, which is a departure from what Trump wrote on Tuesday in a Twitter post, when he said he was a "tariff man". Hurt by China's tariffs on American meat, WH has been the fifth-worst performer on the Hang Seng this year. Trump claimed China had agreed to slash its current 40 percent tariffs on USA auto imports to zero.
The economic stimulus from US tax cuts is beginning to fade. That was expected to continue growing as demand for SUVs rose in that market.
Details regarding China's pledge to buy more American products - one that it has made before - remain scant. It has made no mention of any changes to its auto tariffs. "That will not work", Samuelsson added, noting that Volvo would consider shifting some production from Charleston to China, impacting production levels and hiring at the plant.
Meanwhile, as Trump and White House officials tout the truce, Beijing has said little on a pact that cheered markets but left many questions unanswered.
Discerning what is real right now isn't easy.
"This is just an enormous, enormous event", Larry Kudlow, President Donald Trump's top economic adviser, said Monday of the ceasefire that Trump and President Xi Jinping reached at the weekend on the sidelines of an worldwide economic summit in Buenos Aires, Argentina.
The president himself offered what could, at best, be called a confusing attempt at clarification.
"If it is, we will get it done".
"We don't yet have a specific agreement on that, but I will just tell you as an involved participant, we expect those tariffs to go to zero", Kudlow told Politicoreporter Megan Cassella about Trump's auto tariff claim.
US Representative Steve King, an Iowa Republican, in February 2017 introduced a bill that would have allowed the US government to punish Chinese intellectual property theft by imposing duties on the country's imports.
After the meeting, Washington agreed to hold off on Trump's threat to raise tariffs on $200 billion in Chinese imports to 25 percent beginning January 1, leaving them at the current 10 percent rate. Leaders of the European Unionhave signaled they would echo the response of China, saddling USA -made vehicles with new tariffs in response. As one of the world's biggest markets for pork, it is only natural that they would reach out to one of the world's biggest pork-producing nations: the United States.
Investors in Hong Kong are cheering the U.S. That includes not only the new Volvo plant but also at the BMW Spartanburg facility and Daimler AG's Mercedes-Benz factory in Vance, Alabama. The company said it will invest $600 million in manufacturing through 2021, creating an additional 1,000 jobs in Spartanburg.
Beijing pledged to import more USA products to narrow its massive trade surplus with the USA following the Argentina talks, but it has given few details about what was agreed.
The Dow Jones Industrial Average shed 3.1% while the tech-dominated Nasdaq was nearly 4% down by the close. Chinese shares responded in kind, opening lower on Wednesday. Let the negotiations begin.