Oil edges up but US-China trade tensions curb gains

Clay Curtis
April 10, 2018

"The market is now concerned for the escalating China-U.S. trade war tensions".

The White House has insisted that there was no going back on its actions against China unless Beijing changes its practices of "unfair trade practices and theft of intellectual property". "Taxes will become reciprocal and a deal will be made on intellectual property".

He added that "President Xi and I will always be friends", referring to Chinese President Xi Jinping.

US President Donald Trump on Sunday said he sees an end to the escalating trade dispute with China, after tit-for-tat retaliatory tariffs and threats that rattled markets.

Kudlow said while he would support imposing tariffs if negotiations with China fail, nothing has happened yet.

A new Trump tweet doesn't explain why he's optimistic about resolving an escalating trade clash between the world's two biggest economies.

On Wednesday, China imposed US$3 billion worth of tariffs on U.S. fruits, nuts, wine and pork, just hours after the Trump administration proposed duties on 1,300 Chinese industrial, technology, transport and medical products.

The Trump administration has said it is taking action as a crackdown on China's theft of United States intellectual property. He's also instructed his secretary of agriculture "to implement a plan to protect our farmers and agricultural interests". The US sold about $130 billion in goods to China in 2017 and faces a potentially devastating hit to its market there if China responds in kind.

Belgian cyclist Goolaerts dies, aged 23
The death of Belgian rider Michael Goolaerts following a crash at the Paris-Roubaix one-day race overshadowed the event on Sunday. This is published unedited from the ANI feed . "No update on Michael Goolaerts yet", the team later said in a statement.

China retaliated by unveiling planned levies on $50 billion worth of major United States exports, including soybeans, cars and aircraft. China has to change this illegal and unfair practice that they've been in.

The U.S. bought more than $500 billion in goods from China previous year and now is planning or considering penalties on some $150 billion of those imports.

"And those tariffs will be imposed, and then investment restrictions will be imposed", he said. Sanders said the Trump administration would like to negotiate.

Oxford Economics analysts estimate the threatened United States tariffs cumulatively represent 30 percent of total U.S. imports from China and, if imposed, the loss of Gross Domestic Product over 2018-2019 could reach 0.3 percent in each economy.

Sen. Ben Sasse, R-Neb., a frequent Trump critic, called the escalation "the dumbest possible way" to punish China.

The new ports, plans for which were proposed by Xi in October, would enjoy much greater freedom in terms of policymaking than existing free-trade zones and be more open in terms of market access, according to a person with knowledge of the matter.

"We do have constant communication with them", chief economic adviser Larry Kudlow said on "Fox News Sunday".

"Hopefully the president is just blowing off steam again but, if he's even half-serious, this is nuts", Sasse said in a statement. Kudlow, who started his job a week ago after his predecessor, Gary Cohn, quit over the tariffs plan, noted that none of the USA moves has gone into effect, and he downplayed the possibility of economic repercussions. "But thankfully, we have a president that's willing to actually stand up, be tough, and take some really courageous and bold action, like President Trump has done", she said.

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