Stocks surge on encouraging signs for US-China trade talks

Clay Curtis
August 30, 2019

"We're dealing with China", Trump told Fox News' Brian Kilmeade during an interview on his radio show.

Trump's remarks follow comments Wednesday by Treasury Secretary Steven Mnuchin, who said USA trade officials expect Chinese negotiators to visit Washington, but wouldn't say whether a previously planned September meeting would take place.

But they still aren't ready to give up on the Chinese market.

In earlier rounds of escalation, Beijing had pledged to hit back at any United States tariff hike. But the Chinese foreign ministry denied any knowledge of those calls.

Last week, China announced retaliatory tariffs on USA imports, a move that was met with frustration and further threats of retaliation by President Donald Trump.

Donohue's call for a tariff truce and resumption of negotiations between the USA and China comes as the world's two largest economies are set to impose new duties on each other's exports in an increasing tit-for-tat battle that has rattled world markets.

On Wednesday, a coalition of more than 150 business group representing a wide swath of industries urged Mr. Trump to postpone US tariffs on Chinese imports scheduled to take effect later this year until at least 2020, warning that the levies will damage the economy.

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I did not go through the rigorous verification and standards process here at MSNBC before repeating what I heard from my source. He challenged me to bet 100 percent of my salary that I am wrong about his NBC income. "Tonight, we are retracting the story".

"China has made clear that we firmly reject any escalation of the trade war and are willing to solve the problem through negotiation and collaboration with a calm attitude", Gao Feng said Thursday at a weekly ministry press briefing.

Gao said China had "ample" countermeasures to retaliate against the planned United States tariffs, but talks in the current circumstances should focus on whether the tariffs could be canceled.

When pressed by reporters whether this meant there would be no new countermeasures, he did not confirm. "I think they want to make a deal".

"That's why we believe Trump and Xi should withdraw the tariffs scheduled to take effect this weekend - and then again in December - and instead restart their negotiations", Donohue said.

"Let's see what the end product is; that's what you have to judge it by", Trump said.

The Chinese regime's failure to deliver on this pledge was one of Trump's cited reasons for slapping fresh tariffs on $300 billion of Chinese goods. The key dynamic remains the same, and to some degree afflicts Democrats in Congress as well: Most lawmakers really don't want to overtly challenge Trump's trade war, because they agree with the administration's concerns about unfair Chinese trade practices - especially intellectual property theft and forced technology transfer. Oil prices rose 1.7 percent on news from the U.S. Energy Information Administration that crude oil stock reserves had fallen last week.

Making viral Trump news, the president also jacked up the previously existing 25 percent tariffs on $250 billion in imports from China to 30 percent from October 1, the 70th anniversary of the founding of China.

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