The U. S. upped the ante Wednesday in the trade war with China, at the same time it appears to be making progress on NAFTA, a development that could help soothe a worried stock market.
The U. S. upped the ante Wednesday in the trade war with China, at the same time it appears to be making progress on NAFTA, a development that could help soothe a worried stock market.
President Donald Trump Wednesday told U. S. Trade Representative Robert Lighthizer to consider bumping the proposed 10 percent tariffs on $200 billion in Chinese goods to 25 percent. The administration extended the comment period on this latest round of tariffs by a week to Sept. 5.
“NAFTA’s going great. We’re getting together. Thursday is going to be a big day,” said Daniel Clifton, head of policy research at Strategas. “Mexico and the U. S. appear to be making significant progress on autos. The rumor is they want a deal by Aug. 15 with Mexico, and then reopen to Canada and see if they can get a final deal by late August.”
The stock market waffled on Wednesday, with the Dow and S&P 500 lower amid trade worries, but the Nasdaq lifted into the green with the help of Apple shares, which moved higher after its earnings report.
The new tariff threat on Chinese goods comes just days after Beijing retaliated against the administration ‘s imposition of 25 percent tariffs on $34 billion in goods. The Trump administration is considering an additional $16 billion in goods, but that review is ongoing, an official said Wednesday.
Discussions between the U. S. and China have stalled out, while the Trump administration has been appearing to make progress in talks with the European Union and Mexico. European Commission President Jean-Claude Juncker met at the White House with Trump last week, and the two announced new talks and a truce on any new tariffs, including European autos.
