Yesterday US President Donald Trump escalated his trade war with Beijing, imposing 10 percent tariffs on about $200 billion worth of imports in a move one senior Chinese regulator said “poisoned” the atmosphere for negotiations.
The President warned in a statement that if China takes retaliatory action against U.S. farmers or industries, “we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.” China is reviewing plans to send a delegation to Washington for fresh talks in light of the U.S. decision, the South China Morning Post reported in the early hours.
Collection of tariffs on the long-anticipated list will start on Sept. 24 but the rate will increase to 25 percent by the end of 2018, allowing U.S. companies some time to adjust their supply chains to alternate countries. So far, the United States has imposed tariffs on $50 billion worth of Chinese products to pressure Beijing to make sweeping changes to its trade, technology transfer and high-tech industrial subsidy policies.
Overall inflation in EU slowed marginally to 2.1 percent in August from 2.2 percent a month ago. Harmonized inflation came in at 2 percent in August versus 2.1 percent in July, which was the highest since December 2012. Core inflation that excludes energy, food, alcohol and tobacco, slowed marginally to 1 percent in August from 1.1 percent a month ago. Energy prices showed the biggest increase of 9.2 percent and food, alcohol and tobacco prices gained 2.4 percent. Cost of services grew 1.3 percent and non-energy industrial goods prices gained only 0.4 percent.
Michel Barnier, the EU’s chief negotiator said on Monday that Talks between the European Union and Britain on Brexit are being conducted in a spirit of “good cooperation”. So far, no full exit agreement is in place and some rebels in British Prime Minister Theresa May’s Conservative Party have threatened to vote down a deal if she clinches one with the EU.
08:15 - EUR: ECB President Draghi speaks