Trump & Trade: Feeling the pressure - ING

United States President Donald Trump warned that if China takes retaliatory action against US farmers or industries

Apple Watch, AirPods excluded from next round of tariffs says new report

"China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers due to their loyalty to me", Trump tweeted. However, because of the trade imbalance between the United States and China, Beijing won't be able to continue matching Trump's tariffs.

The escalating confrontation initially shook up global stock markets, but Wall Street was up early Tuesday largely on relief that Trump's tariffs could have been more severe.

"Lack of communication, strong ideological beliefs and basically non-negotiable strategic ambitions have led us to a trade war between two economic giants", Daco wrote. "China will adopt countermeasures to safeguard its legitimate rights and interests and the global free trade order".

"Tariffs increase the cost of our USA operations, divert our resources, and disadvantage Apple compared to foreign competitors", Apple said in comments submitted September 5. "China hopes the United States would recognise the negative consequences of its actions, and take convincing steps to correct its behaviour in a timely manner".

The Trump administration exempted numerous other items from the new tariffs, including smart watches, Bluetooth devices, and infant auto seats.

The latest escalation of the US-China trade clash had all but dismantled the platform for the proposed negotiations before they could even begin.

Multiple reports in recent days cited officials saying Trump had chose to press ahead with new tariffs, but at a lower rate of 10 percent after initially announcing they should be hiked to 25 percent in light of China's alleged intransigence.

China's Finance Ministry said its tariff increases are aimed at curbing "trade friction" and the "unilateralism and protectionism of the United States".

Trump said China was trying to use trade to undermine him with his supporters before November 6 congressional election.

Collection of 10 per cent tariffs will start on September 24 but the rate will increase to 25 per cent by the end of the year, allowing USA companies some time to adjust their supply chains to other countries, a senior administration official said.

The latest round of duties comes on top of a 25 percent tariff already imposed on about US$50 billion in Chinese goods. China has retaliated in kind.

"(The trade dispute) has escalated to a point where finally we're probably getting closer to a resolution", said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

Talks in May between high-level US and Chinese officials ended without an agreement.

"For months, we have urged China to change these unfair practices, and give fair and reciprocal treatment to American companies", Trump said.

Kudlow declined to specify details of the expected announcement but noted that reports indicating Trump will unveil 10 percent duties on $200 billion in imports are "more or less correct".

The U.S. government withdrew some items from its preliminary list of $200 billion in Chinese imports to be taxed, including child-safety products such as bicycle helmets.

Consumers could soon feel the impact, he added.

"Ten percent isn't much, it's really just a warning shot", University of Maryland economist Peter Morici said during an interview on FOX Business' "Mornings with Maria" of the Trump administration's latest tariffs.

In the first two rounds of tariffs, the Trump administration was careful to try to spare consumers from the direct impact of the import taxes.

Lower economic growth in China would have spill-over effects to the rest of Asia given that, just as it provides critical links in the supply chains of U.S. companies, they are also plugged into its supply chain.

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