Asia stocks slip, bonds rally on fears China-US trade deal unravelling

AMD and Nvidia Analysts Worry Amid US-China Tensions

Major Stock Indexes Plunge As US Threatens Higher Tariffs On Chinese Goods

"We'll see but I am very happy with over $100 Billion a year in Tariffs filling USA coffers.great for USA, not good for China!".

Ahead of upcoming trade talks with China, U.S. President Donald Trump said on May 8 that he would be happy to leave import tariffs on China in place.

Negotiations between the US and China were scheduled to continue in Washington on Thursday, and to include China's top trade official.

"We strongly oppose the president's announcement that he will continue to penalize American families and add additional obstacles to economic growth by imposing further tariffs on USA imports from China", said Rick Helfenbein, president and CEO of the American Apparel & Footwear Association.

President Donald Trump's top economic advisers on Monday accused China of reneging on previous commitments to resolve a monthslong trade war and said Trump was prepared to prolong the standoff to force more significant concessions from Beijing. The administration hopes the new tariffs will force changes in China's trade, subsidy and intellectual property practices.

USA officials earlier this week left the door open to continuing discussions to sign off on a historic, comprehensive deal, saying talks between two sides had not broken off yet, despite Beijing "reneging on prior commitments" part of a detailed 150-page document that negotiators had previously agreed to "line by line".


United States soy farmers and industry on Tuesday urged President Donald Trump to pull back from his tariff threat and quickly bring an end to the trade dispute with China.

"As we digest the significance of the tariff threat, we are a little less hopeful that we are going to see progress at the end of this week that will forestall the additional tariffs", said Tony Roth, chief investment officer at Wilmington Trust in Wilmington.

The Chinese yuan is weakening against a basket of currencies midweek as global markets are still reeling from the incoming USA tariff hikes on billions in Chinese imports.

USA stock indexes rebounded slightly from this week's earlier losses after her comments, but the S&P 500 and the Nasdaq closed in negative territory amid caution over trade and some disappointing earnings.

The president confirmed that Vice Premier Liu He was coming to Washington as part of the delegation.

Shortly after Trump tweeted on Wednesday morning, the United States Trade Representative moved to make the tariff hike official.


Thousands of Chinese products - including fruit, vegetables and manufactured goods - would be affected by a decision to raise tariffs, while the United States has indicated that it would also be prepared to target the $325b of imports that are not now subject to higher duties.

"The Chinese are not going to do either of those things", so "the path to political victory for him is a narrow one", he said.

The U.S. Trade Representative's office took a formal step toward implementing the tariffs on Wednesday by publishing a Federal Register notice confirming the duties will increase.

To avert escalation, some of the sources said, Liu would have to scrap China's proposed text changes and agree to make new laws.

A Reuters report earlier quoted U.S. government and private-sector sources as saying China had backtracked on nearly all aspects of a draft trade agreement with the United States. China's exports fell in April amid a punishing tariff war with Washington, adding to pressure on Beijing on the eve of negotiations aimed at settling the fight over its technology ambitions.


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