President Donald Trump ramped up his trade war with China on Thursday, threatening new tariffs in a move that sent stocks lower.
Trump said in a series of tweets that the U.S. would slap 10% tariffs on $300 billion of Chinese goods starting Sept. 1. The move immediately rippled across financial markets, sending stocks
down more than 200 points and causing the yield on the 10-year Treasury
to slump to its lowest level since November 2016.
Trump’s language, however, suggested that he could hold off on imposing the levies. He said trade talks were continuing and that “We look forward to continuing our positive dialogue with China on a comprehensive Trade Deal, and feel that the future between our two countries will be a very bright one!”
If the duties are imposed they will come on top of 25% tariffs on $250 billion worth of goods from China. Trump’s announcement followed a round of U.S.-China talks this week that didn’t yield meaningful results.
Trump sent the tweets before heading to a rally in Cincinnati, Ohio, where he’s almost certain to attack Democratic presidential hopefuls in a key battleground state a day after they concluded debates in Detroit. In a separate tweet he said, “China, Iran & other foreign countries are looking at the Democrat Candidates and ‘drooling’ over the small prospect that they could be dealing with them in the not too distant future. They would be able to rip off our beloved USA like never before. With President Trump, NO WAY!”
Twenty Democrats debated Tuesday and Wednesday night in Detroit, occasionally attacking Trump but largely focusing on each other’s records and ideas.