U.S. stocks fell sharply in the final hour of trading Wednesday after President Trump seemingly reignited the trade war, telling reporters the U.S. would be evaluating whether China has complied with the "phase 1" trade deal to buy an extra $200 billion a year of U.S. goods.
Why it matters: As the coronavirus pandemic continues to choke the U.S. and global economy, Trump is threatening to tighten the vice.
Concern about President Trump's tariffs on U.S. imports of Chinese goods hit its highest level on record in April, as the coronavirus pandemic caused more Americans to fear the their' impact on household finances, according to the latest survey from CivicScience.
Where it stands: The tariffs remain a massive tax on American businesses and individuals at a time when Congress and the Federal Reserve are expending trillions of dollars to offset the negative economic shock of the virus.
An AP report finds that the shortage of medical supplies in the United States correlated with the drop in imports, mainly from China.
Why it matters: Emergency rooms, hospitals, and clinics are starting to run out of key supplies needed to protect health care officials and test potentially sick individuals, AP notes.
As the Trump administration mulls its plan to battle the impact of COVID-19 on the U.S. economy, scant attention has been given to a major source of potential stimulus: reining in its tariffs on China.
Why it matters: U.S. tariffs increase costs for American companies that import Chinese goods, and with fewer customers making purchases as the COVID-19 outbreak slows demand, the trade war "is going to be a bigger drag on the economy," Chad P. Bown, a senior fellow at the Peterson Institute for International Economics (PIIE), tells Axios.chevron.
Vice President Mike Pence told CNBC Friday that "we'll see" if the U.K.'s decision to allow Chinese telecom firm Huawei to build part of its 5G network will impact forthcoming trade talks between the U.S. and U.K.
Why it matters: Striking a trade deal with the U.S. is one of Prime Minister Boris Johnson's top priorities post-Brexit.
Why it matters: This is another sign of tensions easing in the prolonged trade war between the U.S. and China that's brought major uncertainty to the markets and hurt the U.S. manufacturing industry and farmers.
French President Emmanuel Macron on Tuesday tweeted that he and President Trump held a “great discussion” on a tax on digital services considered by Paris and pledged to work on "a good agreement" with Washington "to avoid tariff escalation."
Why it matters: Macron and Trump agreed to avoid increasing tariffs and continue negotiations on the digital tax during until the end of the year, CNBC reports.
President Trump's former chief economic adviser Gary Cohn said on CBS's "Face the Nation" Sunday that he thinks the president's tariffs on China "totally" hurt the United States, and that he doesn't believe they have helped achieve a different "outcome" with China.
The newly inked "phase one" U.S.-China trade deal calls for China to boost purchases of U.S. energy products — including crude oil and liquified natural gas (LNG) — by $52.4 billion over the next two years.
Why it matters: China is the world's largest oil importer and second-largest LNG consumer.
There was limited fanfare from the stock market after President Trump and Chinese Vice Premier Liu He signed the "phase one" trade deal yesterday.
What happened: The 94-page document will roll back some U.S. tariffs on Chinese goods and see China increase purchases of U.S. goods and services by $200 billion over two years, but it leaves more questions than answers, experts say.