U.S. businesses warn Trump administration that new tariffs on $200 billion of Chinese imports will cause consumers to pay more. Trade tensions escalate as the trading rivals make little effort to settle the dispute.
The proposed duties of up to 25% form part of Trump’s efforts to pressure Beijing to end harmful trade practices. However, unlike previous rounds of U.S. tariffs, consumer products could be directly hit by this batch.
Most businesses argued that the tariffs will cause higher costs for everyday products, while the previous tariffs hit mainly industry. A small number of the business sector praised such measures or asked that they be extended to other products.
One criticism voiced by the US business lobby is the lack of “coherent strategy” to address China’s theft of intellectual property.
Mid-level officials from the two countries are expected to meet this week in Washington to discuss the trade dispute. It is unclear if the wide gap between the two economic giants will be bridged.
The Dollar edged higher 0.2% against its major traded rivals as trade dispute is generally seen as beneficial for the greenback. Traders focus also on US-China trade talks and FED policy meeting minutes later this week. The us currency rose 0.1% against the Yen after dropping 0.35% on Friday.
The Euro dropped against the greenback ahead of the trade talks to de-escalate US-China trade tensions, scheduled for this week. The common currency fell 0.2% after sliding to a 13-month low last week.
The Swiss Franc edged higher 0.2% against the Euro.
The Sterling extended its losses on Monday, continuing its worst run since 2014. Last week it was the sixth straight week of losses for the pound amid concerns for no-deal Brexit. However, it was up 0.1% against the single currency.
Oil prices were steady, supported by Dollar’s upward trend and expected drop in supply due to US sanctions on Iran. Brent crude futures rose by 30 cents pb while US crude futures remained almost unchanged, just 3 cents pb down.
Gold prices increased 0.1% at $1,186.02 an ounce. Last week gold suffered its largest weekly loss since May 2017, hitting a 19-month low.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.