U.S. stocks slid Tuesday as escalating trade tensions between the United States and China triggered global growth fears and drove investors away from riskier assets.

The Dow Jones Industrial Average posted its second-biggest daily percentage drop of the year, while the S&P 500 and Nasdaq registered their third-biggest percentage drops, even as the major indexes pared losses to end off their session lows.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin said late Monday that China had backtracked from commitments made during trade negotiations. Those comments followed President Donald Trump’s unexpected statement Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25 percent from 10 percent.

Beijing said Tuesday that Chinese Vice Premier Liu He will visit the United States Thursday and Friday for trade talks. Additional tariffs are set to take effect Friday if a trade agreement is not reached by then.

Investor concerns

Monday’s comments from Lighthizer and Mnuchin raised concerns among some investors that trade talks between China and the United States could take much longer to resolve than previously thought.

“Week after week, we’ve heard there has been progress and that a deal would be reached,” said Kate Warne, investment strategist at Edward Jones in St. Louis. “Now the goalposts have moved. There’s been quite a shift in expectations.”

Investors expressed concern that additional tariffs, if imposed, could interrupt supply chains and hamper economic growth.

“The threat of tariffs has not been trotted out since the end of December,” said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. “It could disrupt the symbiosis between (China and the United States).”

Stocks sensitive to trade 

Trade-sensitive industrial and technology stocks marked the biggest percentage declines among the S&P 500’s major sectors. All 11 sectors were in the red, with only utilities and energy falling less than 1%.

Shares of Boeing Co., the largest U.S. exporter to China, slipped 3.9%, and shares of Caterpillar Inc., another industrial stalwart sensitive to China, declined 2.3%.

Among technology stocks, Microsoft Inc. shares slid 2.1%, while Apple Inc. shares dropped 2.7%. Apple and Microsoft were the top two drags on the S&P 500.

The CBOE Volatility Index, a gauge of investor anxiety, spiked to its highest level in more than three months.

The Dow Jones Industrial Average fell 473.39 points, or 1.79%, to 25,965.09, the S&P 500 lost 48.42 points, or 1.65%, to 2,884.05 and the Nasdaq Composite dropped 159.53 points, or 1.96%, to 7,963.76.

Bright spots

In a bright spot, American International Group Inc. shares jumped 6.8% after the insurer reported a quarterly profit that blew past expectations.

With earnings season now in its homestretch, first-quarter profits are now expected to rise 1.2%, a sharp improvement from the 2.3% decline expected at the start of the earnings season.

Of the 414 S&P companies that have reported earnings so far, about 75% have surpassed analysts’ estimates, according to Refinitiv data.

Conversely, Mylan NV shares tumbled 23.8%, the most among S&P 500 companies, after the drugmaker reported lower-than-expected quarterly revenue and failed to provide greater clarity on a potential revamp of the company’s strategy.

Declining issues outnumbered advancing ones on the NYSE by a 4.13-to-1 ratio; on Nasdaq, a 3.32-to-1 ratio favored decliners. The S&P 500 posted four new 52-week highs and seven new lows; the Nasdaq Composite recorded 44 new highs and 62 new lows.

Volume on U.S. exchanges was 7.8 billion shares, compared to the 6.71 billion average for the full session over the last 20 trading days.
…

U.S. President Donald Trump’s intention to further hike U.S. tariffs on Chinese goods has alarmed American lawmakers of both parties who fear dire economic consequences from escalating tensions between the United States and its trading partners.

“I’m anxious for the tariff war to come to an end,” Republican Sen. Jerry Moran of agriculturally rich Kansas told VOA on Tuesday. “Exports are very important to the economy of my state. I would encourage the rapid resolution between the United States and China, because it has an immediate and consequential effect on the livelihoods of lots of people.”

“The [president’s] whole tariff policy has been dangerous folly,” New Jersey Democratic Sen. Robert Menendez said. “I hear it from New Jersey companies that recently, just this past week, told me about tariffs they have to pay on particular products that they can’t get anywhere else [but foreign suppliers].”

​Who’s paying?

On Sunday, Trump announced that tariffs on $200 billion of Chinese goods would rise from 10% to 25% as of Friday. He tweeted that “China has been paying” U.S. tariffs and that China’s “payments are partially responsible for our great economic results.”

Such assertions are disputed by many lawmakers, including Republicans who, on other matters, often come to the president’s defense.

“Currently, U.S. importers have paid the U.S. government over $16 billion in tariffs on imports from China,” Oklahoma Republican Sen. James Lankford said via Twitter. “This tax is not paid for by Chinese exporters, this is all paid by U.S. importers.”

​Trade talks to continue

Despite Trump’s tariff threat, Chinese officials have signaled they intend to continue trade discussions with Washington, prompting some lawmakers to applaud what they see as the White House’s hardball negotiating stance toward Beijing.

“The only reason that China is at the [negotiating] table is because of these tariffs, let’s not kid ourselves,” Republican Sen. John Kennedy of Louisiana said. “China has been cheating … and it’s got to stop. And President Trump has been the first president to call their hand.”

Some Democrats, meanwhile, credit Trump for confronting China over its trade practices but fault the strategy and tactics the president has employed.

“I commend President Trump for saying the status quo with China is not working,” Virginia Democratic Sen. John Warner said. “China is not playing by the rules, and my fear is the president may end up with a deal where the president sells an extra $100 billion of [American] soybeans, but these broader issues around technology … and [China’s] ongoing theft of intellectual property go unaddressed.”

“Tariff policy by tweet does not work,” said Massachusetts Sen. Elizabeth Warren, who is seeking next year’s Democratic presidential nomination. “We’ve had two years of experience now [with Trump], and it just seems to be getting worse and worse.”

​Beyond China

Tariff concerns on Capitol Hill extend beyond China. A group of Republican lawmakers has urged Trump to halt tariffs targeting Canadian and Mexican goods, warning the measures could torpedo Congress’s consideration of a newly negotiated free trade pact between the United States and both nations.

Regarding the president’s new tariff threat on Chinese exports, some Republicans are willing to give the president the benefit of the doubt — for now.

“Perhaps the president is espousing additional tariffs for purposes of getting China’s attention and to negotiate an agreement. That would be a wonderful outcome,” Moran said. “The challenge is: it’s not just one country that can impose tariffs. So, when the United States [previously] imposed tariffs, China retaliated on products from the United States. And that is very damaging to the ability to earn a living.”
…

U.S. President Donald Trump’s intention to further hike U.S. tariffs on Chinese goods has alarmed American lawmakers of both parties who fear dire economic consequences from escalating tensions between the United States and its trading partners.

“I’m anxious for the tariff war to come to an end,” Republican Sen. Jerry Moran of agriculturally rich Kansas told VOA on Tuesday. “Exports are very important to the economy of my state. I would encourage the rapid resolution between the United States and China, because it has an immediate and consequential effect on the livelihoods of lots of people.”

“The [president’s] whole tariff policy has been dangerous folly,” New Jersey Democratic Sen. Robert Menendez said. “I hear it from New Jersey companies that recently, just this past week, told me about tariffs they have to pay on particular products that they can’t get anywhere else [but foreign suppliers].”

​Who’s paying?

On Sunday, Trump announced that tariffs on $200 billion of Chinese goods would rise from 10% to 25% as of Friday. He tweeted that “China has been paying” U.S. tariffs and that China’s “payments are partially responsible for our great economic results.”

Such assertions are disputed by many lawmakers, including Republicans who, on other matters, often come to the president’s defense.

“Currently, U.S. importers have paid the U.S. government over $16 billion in tariffs on imports from China,” Oklahoma Republican Sen. James Lankford said via Twitter. “This tax is not paid for by Chinese exporters, this is all paid by U.S. importers.”

​Trade talks to continue

Despite Trump’s tariff threat, Chinese officials have signaled they intend to continue trade discussions with Washington, prompting some lawmakers to applaud what they see as the White House’s hardball negotiating stance toward Beijing.

“The only reason that China is at the [negotiating] table is because of these tariffs, let’s not kid ourselves,” Republican Sen. John Kennedy of Louisiana said. “China has been cheating … and it’s got to stop. And President Trump has been the first president to call their hand.”

Some Democrats, meanwhile, credit Trump for confronting China over its trade practices but fault the strategy and tactics the president has employed.

“I commend President Trump for saying the status quo with China is not working,” Virginia Democratic Sen. John Warner said. “China is not playing by the rules, and my fear is the president may end up with a deal where the president sells an extra $100 billion of [American] soybeans, but these broader issues around technology … and [China’s] ongoing theft of intellectual property go unaddressed.”

“Tariff policy by tweet does not work,” said Massachusetts Sen. Elizabeth Warren, who is seeking next year’s Democratic presidential nomination. “We’ve had two years of experience now [with Trump], and it just seems to be getting worse and worse.”

​Beyond China

Tariff concerns on Capitol Hill extend beyond China. A group of Republican lawmakers has urged Trump to halt tariffs targeting Canadian and Mexican goods, warning the measures could torpedo Congress’s consideration of a newly negotiated free trade pact between the United States and both nations.

Regarding the president’s new tariff threat on Chinese exports, some Republicans are willing to give the president the benefit of the doubt — for now.

“Perhaps the president is espousing additional tariffs for purposes of getting China’s attention and to negotiate an agreement. That would be a wonderful outcome,” Moran said. “The challenge is: it’s not just one country that can impose tariffs. So, when the United States [previously] imposed tariffs, China retaliated on products from the United States. And that is very damaging to the ability to earn a living.”
…

German sports car maker and Volkswagen subsidiary Porsche will pay a 535-million-euro ($598 million) fine over diesel vehicles that emitted more harmful pollutants than allowed, Stuttgart prosecutors said Tuesday.

“The Stuttgart prosecutor’s office has levied a 535-million-euro fine against Porsche AG for negligence in quality control,” the investigators said.

Porsche “abstained from a legal challenge” against the decision, the prosecutors office added.

Tuesday’s levy against Porsche is the latest in a string of fines against VW over its years-long “dieselgate” scandal.

The auto behemoth admitted in 2015 to manipulating 11 million vehicles worldwide to appear less polluting in laboratory tests than they were in real driving conditions.

Following fines against VW, high-end subsidiary Audi and now Porsche, no further investigations over “administrative offences” remain open against the group, a spokesman told AFP.

But legal proceedings against individuals, including former chief executive Martin Winterkorn, remain open.

Meanwhile, thousands of investors are suing the company for the losses they suffered on its shares when news of the scandal broke, while hundreds of thousands of drivers are also demanding compensation.

In its own statement, Porsche said the negligence punished by prosecutors was identified “several levels below the board.”

The firm also said that the cost of the fine was included in a provision of around one billion euros booked by the VW group in the first quarter.

So far the total costs of “dieselgate” for the Wolfsburg-based behemoth have mounted to 30 billion euros.

Shares in VW were down 2.2 percent around 2:00 pm in Frankfurt (1200 GMT) at 154.10 euros, against a DAX index of blue-chip shares down 0.7 percent.
…

German sports car maker and Volkswagen subsidiary Porsche will pay a 535-million-euro ($598 million) fine over diesel vehicles that emitted more harmful pollutants than allowed, Stuttgart prosecutors said Tuesday.

“The Stuttgart prosecutor’s office has levied a 535-million-euro fine against Porsche AG for negligence in quality control,” the investigators said.

Porsche “abstained from a legal challenge” against the decision, the prosecutors office added.

Tuesday’s levy against Porsche is the latest in a string of fines against VW over its years-long “dieselgate” scandal.

The auto behemoth admitted in 2015 to manipulating 11 million vehicles worldwide to appear less polluting in laboratory tests than they were in real driving conditions.

Following fines against VW, high-end subsidiary Audi and now Porsche, no further investigations over “administrative offences” remain open against the group, a spokesman told AFP.

But legal proceedings against individuals, including former chief executive Martin Winterkorn, remain open.

Meanwhile, thousands of investors are suing the company for the losses they suffered on its shares when news of the scandal broke, while hundreds of thousands of drivers are also demanding compensation.

In its own statement, Porsche said the negligence punished by prosecutors was identified “several levels below the board.”

The firm also said that the cost of the fine was included in a provision of around one billion euros booked by the VW group in the first quarter.

So far the total costs of “dieselgate” for the Wolfsburg-based behemoth have mounted to 30 billion euros.

Shares in VW were down 2.2 percent around 2:00 pm in Frankfurt (1200 GMT) at 154.10 euros, against a DAX index of blue-chip shares down 0.7 percent.
…

U.S. Commerce Secretary Wilbur Ross said on Tuesday that American technologies and expertise could play an important role in developing India’s economy, but were facing significant barriers to accessing its markets.

Ross told a gathering of business leaders in New Delhi that foreign companies were at a disadvantage due to India’s tariff and non-tariff barriers and myriad regulations.

Ross said India was already the world’s third largest economy and by 2030 it would become the world’s largest consumer market because of the rapid growth of its middle class. “Yet today, India is only the U.S 13th largest export market due to overly restrictive market access barriers.”

Meanwhile, the United States is India’s largest export market, accounting for something like 20 percent of the total. “That’s a real imbalance, and it’s an imbalance we must drive to counter,” he said.

He noted that India’s average applied tariff rate is 13.8 percent, the highest of any major world economy.

India’s Commerce Minister Suresh Prabhu said India would like to work with the United States to resolve such issues in a way that benefits both countries.

“We will address the issues with the United States in a manner that will make this relationship better not just between the United States and India, but for the rest of the world as well,” Prabhu said.

Ross said that American companies now have a unique opportunity to increase defense technology sales to India which in turn would help balance the trade relationship between the two countries.

Bilateral trade in goods and services registered a 12.6% rise to $142 billion in 2018.

Exports of U.S. goods and services to India reached $58.9 billion in 2018, up 19% from 2017, according to the U.S. Embassy.

India offers business opportunities in the sectors of aerospace, defense, energy, health care and environmental technologies.

Representatives of more than 100 U.S. companies are visiting India as part of the U.S. Department of Commerce’s largest annual trade mission program, Trade Winds. They’re looking for opportunities in aerospace, defense, energy, health care and environmental technologies.

The delegation met with government leaders, market experts and potential business partners in New Delhi on Tuesday. They also will visit Ahmadabad, Chennai, Kolkata, Mumbai, Bangalore and Hyderabad.

 
…

U.S. Commerce Secretary Wilbur Ross said on Tuesday that American technologies and expertise could play an important role in developing India’s economy, but were facing significant barriers to accessing its markets.

Ross told a gathering of business leaders in New Delhi that foreign companies were at a disadvantage due to India’s tariff and non-tariff barriers and myriad regulations.

Ross said India was already the world’s third largest economy and by 2030 it would become the world’s largest consumer market because of the rapid growth of its middle class. “Yet today, India is only the U.S 13th largest export market due to overly restrictive market access barriers.”

Meanwhile, the United States is India’s largest export market, accounting for something like 20 percent of the total. “That’s a real imbalance, and it’s an imbalance we must drive to counter,” he said.

He noted that India’s average applied tariff rate is 13.8 percent, the highest of any major world economy.

India’s Commerce Minister Suresh Prabhu said India would like to work with the United States to resolve such issues in a way that benefits both countries.

“We will address the issues with the United States in a manner that will make this relationship better not just between the United States and India, but for the rest of the world as well,” Prabhu said.

Ross said that American companies now have a unique opportunity to increase defense technology sales to India which in turn would help balance the trade relationship between the two countries.

Bilateral trade in goods and services registered a 12.6% rise to $142 billion in 2018.

Exports of U.S. goods and services to India reached $58.9 billion in 2018, up 19% from 2017, according to the U.S. Embassy.

India offers business opportunities in the sectors of aerospace, defense, energy, health care and environmental technologies.

Representatives of more than 100 U.S. companies are visiting India as part of the U.S. Department of Commerce’s largest annual trade mission program, Trade Winds. They’re looking for opportunities in aerospace, defense, energy, health care and environmental technologies.

The delegation met with government leaders, market experts and potential business partners in New Delhi on Tuesday. They also will visit Ahmadabad, Chennai, Kolkata, Mumbai, Bangalore and Hyderabad.

 
…

China has confirmed that its top trade negotiator will travel to the United States to conduct a new round of trade talks later this week, even after U.S. President Donald Trump threatened higher tariffs on billions of dollars of Chinese goods after he complained the process is taking too long.

The Commerce Ministry issued a statement Tuesday that Vice Premier Liu He, President Xi Jinping’s top economic advisor, will meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for two days of talks beginning Thursday.

Trump’s Twitter comments on Sunday about the new tariffs sent Asian stocks and U.S. futures tumbling Monday and added uncertainty over the future of U.S.-China trade negotiations. Despite the market drop, China’s official media stayed silent on Trump’s comments all morning.

Hours later, Foreign Ministry spokesman Geng Shuang told reporters that China is “trying to get more information” about Trump’s comments about new tariffs but stressed that Beijing’s negotiating team is still preparing to travel to the U.S. for talks this week. Geng did not say whether Vice Premier Liu would lead the delegation.

“The tweet is a big wrench in China’s foreign trade policy,” Nick Marro, analyst at The Economist Intelligence Unit (The EIU), told VOA. “There were a lot of expectations that at least the groundwork for a deal will be finalized this week,” he said, explaining why Beijing should be upset by the new threat.

Tweet with teeth

In his tweet, Trump said he would increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent on Friday. This would reverse a decision Washington took last February to keep it at 10 percent in the midst of trade talks.

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!,” Trump said, expressing dissatisfaction about the pace of trade negotiations and what he considered a Chinese attempt to renegotiate some aspects of the proposed deal.

Lighthizer on Monday confirmed that tariffs will be imposed Friday. He and Treasury Secretary Mnuchin told reporters Trump had learned over the weekend that Chinese officials “were trying to go back on some of the language” that had been negotiated in 10 earlier rounds of talks. They did not offer details.

Trump also said his policy of hiking taxes on Chinese goods had paid dividends.

“These payments are partially responsible for our great economic results,” he said.

He went further, saying another $325 billion of Chinese goods which “remain untaxed” will be taxed at 25 percent. He did not specify a timeline for making this change.

Unaffected stance

In its response Monday, the Chinese foreign ministry expressed hope that there is no change in the situation, and the two countries will continue to strive for an end to the trade war.

“What is of vital importance is that we still hope the United States can work hard with China to meet each other half way, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect,” Geng said.

Echoing China’s confidence that trade talks would not be disrupted by Trump’s tweet, Shanghai-based expert Shen Dingli said, “China and the U.S. have big and overlapping stakes in bilateral trade. They will overcome any difficulties for a successful outcome of the trade talks.”

 
…

China has confirmed that its top trade negotiator will travel to the United States to conduct a new round of trade talks later this week, even after U.S. President Donald Trump threatened higher tariffs on billions of dollars of Chinese goods after he complained the process is taking too long.

The Commerce Ministry issued a statement Tuesday that Vice Premier Liu He, President Xi Jinping’s top economic advisor, will meet with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin for two days of talks beginning Thursday.

Trump’s Twitter comments on Sunday about the new tariffs sent Asian stocks and U.S. futures tumbling Monday and added uncertainty over the future of U.S.-China trade negotiations. Despite the market drop, China’s official media stayed silent on Trump’s comments all morning.

Hours later, Foreign Ministry spokesman Geng Shuang told reporters that China is “trying to get more information” about Trump’s comments about new tariffs but stressed that Beijing’s negotiating team is still preparing to travel to the U.S. for talks this week. Geng did not say whether Vice Premier Liu would lead the delegation.

“The tweet is a big wrench in China’s foreign trade policy,” Nick Marro, analyst at The Economist Intelligence Unit (The EIU), told VOA. “There were a lot of expectations that at least the groundwork for a deal will be finalized this week,” he said, explaining why Beijing should be upset by the new threat.

Tweet with teeth

In his tweet, Trump said he would increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent on Friday. This would reverse a decision Washington took last February to keep it at 10 percent in the midst of trade talks.

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!,” Trump said, expressing dissatisfaction about the pace of trade negotiations and what he considered a Chinese attempt to renegotiate some aspects of the proposed deal.

Lighthizer on Monday confirmed that tariffs will be imposed Friday. He and Treasury Secretary Mnuchin told reporters Trump had learned over the weekend that Chinese officials “were trying to go back on some of the language” that had been negotiated in 10 earlier rounds of talks. They did not offer details.

Trump also said his policy of hiking taxes on Chinese goods had paid dividends.

“These payments are partially responsible for our great economic results,” he said.

He went further, saying another $325 billion of Chinese goods which “remain untaxed” will be taxed at 25 percent. He did not specify a timeline for making this change.

Unaffected stance

In its response Monday, the Chinese foreign ministry expressed hope that there is no change in the situation, and the two countries will continue to strive for an end to the trade war.

“What is of vital importance is that we still hope the United States can work hard with China to meet each other half way, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect,” Geng said.

Echoing China’s confidence that trade talks would not be disrupted by Trump’s tweet, Shanghai-based expert Shen Dingli said, “China and the U.S. have big and overlapping stakes in bilateral trade. They will overcome any difficulties for a successful outcome of the trade talks.”

 
…

The United States will impose a 17.5 percent tariff on Mexican tomato imports starting on Tuesday, as the two countries were unable to renew a 2013 agreement that suspended a U.S. anti-dumping investigation, a Mexican official said on Monday.

The U.S. Commerce Department said in early February that the United States would resume an anti-dumping investigation into Mexican tomatoes, withdrawing from a so-called suspension agreement that halted the anti-dumping case as long as Mexican producers sold their tomatoes above a pre-determined price. U.S. growers and lawmakers say that deal has failed.

At the time, Commerce said it was giving the required 90-day notice before terminating the six-year-old agreement.

“As of tomorrow a tariff of 17.5 percent will be applied on the value of the product … Mexican exporters will be affected, it’s going to affect their financial flows but that is going to be directly transferred to U.S. consumers,” said Mexican Deputy Economy Minister Luz Maria de la Mora.

She added that the U.S. measures will remain in place until a new suspension agreement is reached.

“We’re very disappointed but the good news is that negotiations continue, looking for a solution. And we hope that in the coming weeks we can in fact reach an agreement,” said de la Mora.

Mexico exports around $2 billion worth of tomatoes to the United States annually, according to de la Mora.

A trade war over tomatoes was averted twice since the 1990s, most recently in the 2013 deal that put a price floor on Mexican tomatoes sold in the United States while barring U.S. growers from pursuing anti-dumping charges against Mexican exporters.

Fruit and vegetable growers in the southeastern U.S. had persuaded the Trump administration to seek the ability to impose seasonal anti-dumping duties against Mexican produce in negotiations to update the North American Free Trade Agreement.

But this demand was withdrawn in the final talks over the U.S.-Mexico-Canada trade deal reached last October.

A month later, the Florida Tomato Exchange, which represents growers in the state, had petitioned the Commerce Department to terminate the 2013 tomato pact. It argued that the agreement could not be enforced and contained too many loopholes through which Mexican growers could dump tomatoes in the U.S. market.
…

China says its negotiators are preparing to travel to the United States for their next round of trade talks this week, even after U.S. President Donald Trump threatened higher tariffs on billions of dollars of Chinese goods after he complained the process is taking too long.

Trump’s comments about the new tarifs on Twitter on Sunday sent Asian stocks and U.S. futures tumbling Monday and added uncertainty over the figure of U.S.-China trade negotiations. Despite the market drop, China’s official media stayed silent on Trump’s comments all morning.

Hours later, Foreign ministry spokesman Geng Shuang told reporters that China is “trying to get more information” about Trump’s comments about new tariffs but stressed that Beijing’s negotiating team is still preparing to travel to the U.S. for talks this week.

“The tweet is a big wrench in China’s foreign trade policy,” Nick Marro, Analyst at The Economist Intelligence Unit (The EIU) told VOA. “There were a lot of expectations that at least the groundwork for a deal will be finalized this week,” he said, explaining why Beijing should be upset by the new threat.

Tweet with teeth

In his tweet issued on Sunday, Trump said he would increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent on Friday. This would mark a reversal of a decision Washington took last February to keep it at 10 percent in the midst of trade talks.

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!,” Trump said expressing dissatisfaction about the pace of trade negotiations and what he considers Chinese attempt to renegotiate some aspects of the proposed deal.

President Trump also said that his policy of hiking taxes on Chinese goods had paid dividends. “These payments are partially responsible for our great economic results,” he said.

He went further saying another $325 billion of Chinese goods which “remain untaxed” will be taxed at 25 percent. He did not specify a timeline for making this change.

Unaffected stance

In its response Monday, Chinese foreign ministry expressed hope there is no change in the situation and the two countries will continue to strive for an end to the trade war.

“What is of vital importance is that we still hope the United States can work hard with China to meet each other half way, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect,” Foreign Ministry spokesman Geng said.

What the ministry did not clarify is whether China would send the same envoy, Vice Premier Liu He, as head of the official delegation as originally planned.

Echoing China’s confidence that trade talks would not be disrupted by Trump’s tweet, Shanghai based expert Shen Dingli said, “China and the U.S. have big and overlapping stakes in bilateral trade. They will overcome any difficulties for a successful outcome of the trade talks.”

The tweet has also made it difficult for Chinese President Xi to make a proposed China-U.S. deal acceptable to his domestic audience. Xi does not want to be seen as being bulled into accepting a deal by the U.S., Nick Marro said. “It has shattered the potential optics around the deal. The tweet makes the deal look like China has no choice but to listen to the U.S.”

Dingli sees nothing odd about Trump’s use of tweet as a foreign policy instrument although this aspect has been widely criticized in some circles.

“America does not have a propaganda department like the Chinese government. Therefore, Trump has invented something that is good for him,” Dingli said. “A competent propaganda department has made China powerful. My President does not need to use his own account in WeChat [Chinese social media app] to communicate,” he said.

Washington and Beijing have engaged in reciprocal tariff hikes over the last year while negotiators have engaged in lengthy trade talks, alternating negotiations between the two capitals.

Despite an initial goal of finishing by March 1, the two countries have continued to debate several issues, but have yet to complete a deal. Both sides, representing the world’s two biggest economies, have said progress is being made.

The two countries have been trying to resolve disputes over intellectual property theft and forced technology transfers. It is not clear whether the tariffs both countries have imposed will remain in place if an agreement is reached.
…

China says its negotiators are preparing to travel to the United States for their next round of trade talks this week, even after U.S. President Donald Trump threatened higher tariffs on billions of dollars of Chinese goods after he complained the process is taking too long.

Trump’s comments about the new tarifs on Twitter on Sunday sent Asian stocks and U.S. futures tumbling Monday and added uncertainty over the figure of U.S.-China trade negotiations. Despite the market drop, China’s official media stayed silent on Trump’s comments all morning.

Hours later, Foreign ministry spokesman Geng Shuang told reporters that China is “trying to get more information” about Trump’s comments about new tariffs but stressed that Beijing’s negotiating team is still preparing to travel to the U.S. for talks this week.

“The tweet is a big wrench in China’s foreign trade policy,” Nick Marro, Analyst at The Economist Intelligence Unit (The EIU) told VOA. “There were a lot of expectations that at least the groundwork for a deal will be finalized this week,” he said, explaining why Beijing should be upset by the new threat.

Tweet with teeth

In his tweet issued on Sunday, Trump said he would increase tariffs on $200 billion worth of Chinese goods from 10 percent to 25 percent on Friday. This would mark a reversal of a decision Washington took last February to keep it at 10 percent in the midst of trade talks.

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!,” Trump said expressing dissatisfaction about the pace of trade negotiations and what he considers Chinese attempt to renegotiate some aspects of the proposed deal.

President Trump also said that his policy of hiking taxes on Chinese goods had paid dividends. “These payments are partially responsible for our great economic results,” he said.

He went further saying another $325 billion of Chinese goods which “remain untaxed” will be taxed at 25 percent. He did not specify a timeline for making this change.

Unaffected stance

In its response Monday, Chinese foreign ministry expressed hope there is no change in the situation and the two countries will continue to strive for an end to the trade war.

“What is of vital importance is that we still hope the United States can work hard with China to meet each other half way, and strive to reach a mutually beneficial, win-win agreement on the basis of mutual respect,” Foreign Ministry spokesman Geng said.

What the ministry did not clarify is whether China would send the same envoy, Vice Premier Liu He, as head of the official delegation as originally planned.

Echoing China’s confidence that trade talks would not be disrupted by Trump’s tweet, Shanghai based expert Shen Dingli said, “China and the U.S. have big and overlapping stakes in bilateral trade. They will overcome any difficulties for a successful outcome of the trade talks.”

The tweet has also made it difficult for Chinese President Xi to make a proposed China-U.S. deal acceptable to his domestic audience. Xi does not want to be seen as being bulled into accepting a deal by the U.S., Nick Marro said. “It has shattered the potential optics around the deal. The tweet makes the deal look like China has no choice but to listen to the U.S.”

Dingli sees nothing odd about Trump’s use of tweet as a foreign policy instrument although this aspect has been widely criticized in some circles.

“America does not have a propaganda department like the Chinese government. Therefore, Trump has invented something that is good for him,” Dingli said. “A competent propaganda department has made China powerful. My President does not need to use his own account in WeChat [Chinese social media app] to communicate,” he said.

Washington and Beijing have engaged in reciprocal tariff hikes over the last year while negotiators have engaged in lengthy trade talks, alternating negotiations between the two capitals.

Despite an initial goal of finishing by March 1, the two countries have continued to debate several issues, but have yet to complete a deal. Both sides, representing the world’s two biggest economies, have said progress is being made.

The two countries have been trying to resolve disputes over intellectual property theft and forced technology transfers. It is not clear whether the tariffs both countries have imposed will remain in place if an agreement is reached.
…

U.S. President Donald Trump said on Sunday he would raise tariffs to 25 percent from 10 percent on $200 billion of Chinese goods.

The United States has levied tariffs on a total of $250 billion of Chinese imports, global steel and aluminum imports, and shipments of washing machines and solar panels since January 2018, when Trump’s administration levied its first trade tariffs.

Trump has referred to himself as a “Tariff Man” and says the duties he has imposed on a range of goods and metal imports are filling up state coffers.

Through mid-March, Washington netted $15.6 billion through tariffs imposed since February 2018, according to data from U.S. Customs and Border Protection (CBP). Customs duties receipts in the first half of the current fiscal year, which began on Oct. 1, have shot up by 89 percent from a year ago to $34.7 billion, data from U.S. Treasury shows.

WHO IS PAYING THE TARIFFS?

Trump says China foots the bill for U.S. tariffs on imported Chinese good.

“For 10 months, China has been paying Tariffs to the USA” he wrote on Twitter on Sunday.

“We have billions of dollars coming into our Treasury — billions — from China. We never had 10 cents coming into our Treasury; now we have billions coming in,” he said on Jan. 24.

PAID AT CUSTOMS

A tariff is a tax on imports. The CBP typically requires importers to pay the duties within 10 days of their shipments clearing customs.

So the tariffs are paid to the U.S. government by importing companies. Most importers of Chinese-made goods are U.S. companies, or the U.S.-registered units of foreign companies that import goods from China.

Every item imported into the United States legally has a customs code. Importers are expected to check the tariffs and other taxes and duties due on the goods they bring in, calculate what they owe, and pay it.

The CBP reviews the payments. If it discovers an underpayment, U.S. customs will send the importer a fresh bill.

DO U.S. IMPORTERS PASS ON THE COSTS OF TARIFFS TO THEIR SUPPLIERS IN CHINA?

Some of them do, yes. So Chinese companies pay some of the cost. An importing company paying tariffs can manage the cost in several ways:

1. Pay the full cost and live with a lower profit margin.

2. Cut costs to offset higher tariffs.

3. Ask suppliers in China for a discount to help offset the higher tariffs.

4. Seek to source supplies from outside China. So some Chinese companies are losing business.

5. Pass the tariff costs on to customers by increasing retail prices.

Most importers could use a mix of those options to spread the cost between suppliers, themselves, and consumers or buyers.

HOW DOES THAT ACTUALLY WORK?

For example, higher duties on imports of metals and Chinese products increased Caterpillar’s production costs by more than $100 million last year. In response, the heavy-duty equipment maker increased prices for its products.

Tractor manufacturer Deere & Co estimates a $100 million increase in its raw materials costs this year because of Trump’s tariffs on Chinese imports. Deere has cut costs and increased prices to protect its profits.

A Congressional Research Service report in February found that the tariffs had led to an increase of as much as 12 percent in the price of washing machines in the United States, compared to January 2018 when the duties were not in effect.

According to a study by the Peterson Institute for International Economics, the steel and aluminum tariffs increased the price of steel products by nearly 9 percent last year, pushing up costs for steel users by $5.6 billion.

Separately, a study by the Federal Reserve Bank of New York, Princeton University, and Columbia University concluded that the Chinese and steel and aluminum tariffs cost companies and consumers $3 billion a month in additional taxes and companies a further $1.4 billion in efficiency loses in 2018.0

WHAT DO CHINESE FIRMS PAY?

China has retaliated against U.S. tariffs by imposing its own tariffs on imports from the United States.

Most importers in China are Chinese. So in the same way the U.S. government is receiving import taxes on Chinese goods from U.S. importers, the Chinese government is receiving taxes on U.S. goods from Chinese importers.

WHAT’S THE TOTAL BILL?

Trump has imposed a 25 percent tax on $50 billion of Chinese goods, and a 10 percent tax on goods worth $200 billion more.

That, in theory, would mean the U.S government would receive a total of $32.5 billion per year on top of whatever duties were already in place.

U.S. tariff revenue in 2018 was $49.7 billion. That was up 41.2 percent from the $35.2 billion in 2017 before the trade wars started.

China has imposed 25 percent tariffs on $50 billion of U.S. imports, and also has tariffs of 5 to 10 percent on $60 billion more. That equates to around $15.5 billion to $18.5 billion in tariffs.

Chinese tariff revenue in 2018 was 284.8 billion yuan ($42.41 billion), down from 299.8 billion yuan ($44.65 billion) in 2017.

 
…

Boeing did not tell U.S. regulators for more than a year that it inadvertently made an alarm alerting pilots to a mismatch of flight data optional on the 737 MAX, instead of standard as on earlier 737s, but insisted on Sunday the missing display represented no safety risk.

The U.S. plane maker has been trying for weeks to dispel suggestions that it made airlines pay for safety features after it emerged that an alert designed to show discrepancies in Angle of Attack readings from two sensors was optional on the 737 MAX.

Erroneous data from a sensor responsible for measuring the angle at which the wing slices through the air – known as the Angle of Attack – is suspected of triggering a flawed piece of software that pushed the plane downward in two recent crashes.

In a statement, Boeing said it only discovered once deliveries of the 737 MAX had begun in 2017 that the so-called AOA Disagree alert was optional instead of standard as it had intended, but added that was not critical safety data.

A Federal Aviation Administration official told Reuters on Sunday that Boeing waited 13 months before informing the agency in November 2018.

By becoming optional, the alert had been treated in the same way as a separate indicator showing raw AOA data, which is seldom used by commercial pilots and had been an add-on for years.

“Neither the angle of attack indicator nor the AOA Disagree alert are necessary for the safe operation of the airplane,” Boeing said.

“They provide supplemental information only, and have never been considered safety features on commercial jet transport airplanes.”

Boeing said a Safety Review Board convened after a fatal Lion Air crash in Indonesia last October corroborated its prior conclusion that the alert was not necessary for the safe operation of commercial aircraft and could safely be tackled in a future system update.

The FAA backed that assessment but criticized Boeing for being slow to disclose the problem.

Boeing briefed the FAA on the display issue in November, after the Lion Air accident, and a special panel deemed it to be “low risk,” an FAA spokesman said.

“However, Boeing’s timely or earlier communication with the operators would have helped to reduce or eliminate possible confusion,” he added.

Boeing attributed the error to software delivered to the company from an outside source, but did not give details.

Sunday’s statement marked the first time since the two fatal accidents that Boeing explicitly acknowledged doing something inadvertently in the development of the 737 MAX, albeit on an issue that it contends has no impact on safety.

​Boeing has said the feeding of erroneous Angle of Attack data to a system called MCAS that pushed the planes lower was a common link in two wider chains of events leading to both crashes, but has stopped short of admitting error on that front.

The angle of attack measures the angle between the air flow and the wing and helps determine whether the plane is able to fly correctly. If the angle becomes too steep, the flow of air over the wing is disturbed, throwing the plane into an aerodynamic stall. That means it starts to fall instead of fly.

Although the angle itself is key for onboard systems, the industry has debated for years whether such data should be included in already crowded cockpit displays because it is directly related to airspeed, which pilots already scrutinize.

Some analysts and academics say having the AOA Disagree alert installed would have helped Lion Air maintenance crew diagnose a problem on the penultimate flight of the 737 MAX jet that crashed in October, killing all 189 on board.

The 737 MAX was grounded worldwide over safety concerns following the Ethiopian crash in March, killing 157 people.

When the jet returns to service, all new aircraft will have a working AOA Disagree alert as a standard feature and a no-charge optional indicator showing the underlying data, Boeing said. That restores the situation found on the displays of previous 737NG models since around the middle of last decade.

Airlines with grounded 737 MAX jets will be able to activate the AOA Disagree function directly.

Boeing is also developing a software upgrade and training changes to the MCAS system that must be approved by global regulators before the jets can fly again.

Boeing has yet to formally submit the upgrades to the FAA for approval but could do as early as this week once it completes a special test flight.

Federal prosecutors, the Transportation Department inspector general’s office and a blue-ribbon panel are also looking into the 737 MAX’s certification. A U.S. House of Representatives panel will hold a hearing on the plane’s status with the FAA’s acting chief, Dan Elwell, and National Transportation Safety Board Chairman Robert Sumwalt on May 15. 
…

Democratic presidential candidate Bernie Sanders on Sunday proposed a sweeping agriculture and rural investment plan to break up big agriculture monopolies and shift farm subsidies toward small family farmers.

“I think a farmer that produces the food we eat may be almost as important as some crook on Wall Street who destroys the economy,” Sanders said during a campaign event in Osage, a town of fewer than 4,000 people. “Those of us who come from rural America have nothing to be ashamed about, and the time is long overdue for us to stand up and fight for our way of life.”

Sanders’ plan expands on themes that have been central to his presidential campaign in Iowa since the start, including his emphasis on rural America and pledge to take on and break up big corporations.

During his Sunday speech, Sanders outlined the dire circumstances confronting rural America — population decline, school and hospital closures and rising addiction and suicide rates in many rural counties nationwide — as the impetus for his policy.

His plan includes a number of antitrust proposals, including breaking up existing agriculture monopolies and placing a moratorium on future mergers by big agriculture companies. He would also ban “vertically integrated” agribusinesses — companies that control multiple levels of production and processing of a product.

One of his competitors in the Democratic race, Massachusetts Sen. Elizabeth Warren, included several of those antitrust planks in the agriculture policy she released in March. But Sanders’ policy is more expansive than just targeting major agriculture corporations — he’s also proposing greater government involvement in setting price controls and managing supply and demand of agriculture commodities.

His plan calls for a shift from the current farm subsidy system toward a “parity system,” which means “setting price floors and matching supply with demand so farmers are guaranteed the cost of production and family living expenses.” Critics of the farm bill have argued that the current government subsidy system favors large family farms and corporate farms over small family farms, and Sanders’ policy aims to make that distribution more equal.

Such a major change in agriculture policy would require congressional action and would likely face fierce opposition from the farm lobby — but Sanders pledged to fight for farmers against corporate interests.

“In rural America, we are seeing giant agribusiness conglomerates extract as much wealth out of small communities as they possibly can while family farmers are going bankrupt and in many ways are being treated like modern-day indentured servants,” Sanders said.

Sanders would also classify food supply security as a national security issue and increase scrutiny over foreign ownership of American farmland. And he suggests re-establishing a “national grain and feed reserve” in case of a natural disaster or severe weather event — a proposal inspired in part by the recent flooding on Iowa’s eastern and western borders, which swamped acres of cropland and wiped out farmers’ stores.

Sanders also wants to change patent law to protect small farmers from lawsuits brought by corporate farms, strengthen organic standards and bolster programs aimed at supporting minority farmers. He includes in his proposal planks focused on rural economic and infrastructure development and on incentivizing the agriculture industry to help combat climate change by shifting to more sustainable farming practices.

Sanders’ agriculture proposal includes planks that specifically tailor some of his broader policy priorities to rural America. He has proposed increasing funding for public education and establishing a universal childcare system, and his agriculture plan seeks an increase in funding for rural education and a universal childcare system that provides access for rural Americans to daycare.
…

U.S. President Donald Trump, looking to pressure China to speed up talks on a new trade agreement, says that starting Friday he will impose sharply higher tariffs on billions of dollars of Chinese exports to the United States.

Trump said Sunday on Twitter, “For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results.”

He said, “The 10% will go up to 25% on Friday. 325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” 

The Wall Street Journal reported late Sunday that China is considering canceling trade talks scheduled to take place in Washington this week.

The White House press secretary had not yet responded to VOA for comment regarding the Wall Street Journal report.

Washington and Beijing have engaged in reciprocal tariff hikes over the last year while negotiators have engaged in lengthy trade talks, alternating negotiations between the two capitals. Trump and Chinese President Xi Jinping had agreed last December to forestall new tariffs while the talks were going on, but it was not clear how Trump’s announcement would affect the negotiations, set to resume in Washington on Wednesday.

Despite an initial goal of finishing by March 1, the two countries have continued to debate several issues, but have yet to complete a deal. Both sides, representing the world’s two biggest economies, have said progress is being made.

The two countries have been trying to resolve disputes over intellectual property theft and forced technology transfers. It is not clear whether the tariffs both countries have imposed will remain in place if an agreement is reached.
…

U.S. employers added a robust 263,000 jobs in April, suggesting that businesses have shrugged off earlier concerns that the economy might slow this year and anticipate strong customer demand.

The unemployment rate fell to a five-decade low of 3.6% from 3.8%, though that drop partly reflected an increase in the number of Americans who stopped looking for work. Average hourly pay rose 3.2% from 12 months earlier, a healthy increase though unchanged from the previous month.

Friday’s jobs report from the Labor Department showed that solid economic growth is still encouraging strong hiring nearly a decade into the economy’s recovery from the Great Recession. The economic expansion is set to become the longest in history in July.

Many businesses say they are struggling to find workers. Some have taken a range of steps to fill jobs, including training more entry-level workers, loosening educational requirements and raising pay.

The brightening picture represents a sharp improvement from the start of the year. At the time, the government was enduring a partial shutdown, the stock market had plunged, trade tensions between the United States and China were flaring and the Federal Reserve had just raised short-term interest rates in December for a fourth time in 2018. Analysts worried that the economy might barely expand in the first three months of the year.

Yet the outlook soon brightened. Chair Jerome Powell signaled that the Fed would put rate hikes on hold. Trade negotiations between the U.S. and China made some progress. The economic outlook in some other major economies improved. Share prices rebounded.

And in the end, the government reported that the U.S. economy grew at a 3.2% annual rate in the January-March period — the strongest pace for a first quarter since 2015. That said, the growth was led mostly by factors that could prove temporary — a restocking of inventories in warehouses and on store shelves and a narrowing of the U.S. trade deficit. By contrast, consumer spending and business investment, which more closely reflect the economy’s underlying strength, were relatively weak.

Yet American households have become more confident since the winter and are ramping up their spending. Consumer spending surged in March by the most in nearly a decade. A likely factor is that steady job growth and solid wage increases have enlarged Americans’ paychecks.

Businesses are also spending more freely. Orders to U.S. factories for long-lasting capital goods jumped in March by the most in eight months. That suggested that companies were buying more computers, machinery and other equipment to keep up with growing customer demand.

Housing, too, is rebounding after home sales had slumped in the second half of last year. Mortgage rates rose to nearly 5% last fall as the Fed raised interest rates. With the Fed now putting rate hikes on hold, borrowing costs have declined.

In February, sales of existing homes jumped by the most in three years. And in March, more Americans signed contracts to buy a house. Contract signings usually lead to finished sales one to two months later.
…

U.S. employers added a robust 263,000 jobs in April, suggesting that businesses have shrugged off earlier concerns that the economy might slow this year and anticipate strong customer demand.

The unemployment rate fell to a five-decade low of 3.6% from 3.8%, though that drop partly reflected an increase in the number of Americans who stopped looking for work. Average hourly pay rose 3.2% from 12 months earlier, a healthy increase though unchanged from the previous month.

Friday’s jobs report from the Labor Department showed that solid economic growth is still encouraging strong hiring nearly a decade into the economy’s recovery from the Great Recession. The economic expansion is set to become the longest in history in July.

Many businesses say they are struggling to find workers. Some have taken a range of steps to fill jobs, including training more entry-level workers, loosening educational requirements and raising pay.

The brightening picture represents a sharp improvement from the start of the year. At the time, the government was enduring a partial shutdown, the stock market had plunged, trade tensions between the United States and China were flaring and the Federal Reserve had just raised short-term interest rates in December for a fourth time in 2018. Analysts worried that the economy might barely expand in the first three months of the year.

Yet the outlook soon brightened. Chair Jerome Powell signaled that the Fed would put rate hikes on hold. Trade negotiations between the U.S. and China made some progress. The economic outlook in some other major economies improved. Share prices rebounded.

And in the end, the government reported that the U.S. economy grew at a 3.2% annual rate in the January-March period — the strongest pace for a first quarter since 2015. That said, the growth was led mostly by factors that could prove temporary — a restocking of inventories in warehouses and on store shelves and a narrowing of the U.S. trade deficit. By contrast, consumer spending and business investment, which more closely reflect the economy’s underlying strength, were relatively weak.

Yet American households have become more confident since the winter and are ramping up their spending. Consumer spending surged in March by the most in nearly a decade. A likely factor is that steady job growth and solid wage increases have enlarged Americans’ paychecks.

Businesses are also spending more freely. Orders to U.S. factories for long-lasting capital goods jumped in March by the most in eight months. That suggested that companies were buying more computers, machinery and other equipment to keep up with growing customer demand.

Housing, too, is rebounding after home sales had slumped in the second half of last year. Mortgage rates rose to nearly 5% last fall as the Fed raised interest rates. With the Fed now putting rate hikes on hold, borrowing costs have declined.

In February, sales of existing homes jumped by the most in three years. And in March, more Americans signed contracts to buy a house. Contract signings usually lead to finished sales one to two months later.
…

A White House meeting between the current U.S. president and a prominent businessman who is seeking to become president of Taiwan is causing concern. 

The White House on Thursday sought to downplay any diplomatic or political sensitivities, saying President Donald Trump and Foxconn founder Terry Gou did not discuss support for the billionaire’s presidential campaign in Taiwan. 

“He is just a great friend” of Trump, White House press secretary Sarah Sanders said in a statement. 

The Taiwanese businessman, however, in a Facebook posting after Wednesday’s meeting and in a discussion with reporters, said he told the president of his candidacy and Trump responded that being president “was a tough job.” 

He also displayed a pen and autographed coin he said that Trump gave him.

“If I am elected president of the Republic of China, I will be a peacemaker and won’t become a troublemaker,” Gou told reporters. “I will strengthen Taiwan and the U.S. economically.” He also boasted that of all the presidential contenders, he is the only one to have secured an Oval Office meeting. 

Wednesday’s discussion is the first known circumstance of a sitting American president meeting with a Taiwanese presidential candidate since Washington broke diplomatic ties with Taipei in 1979 as part of its recognition of the communist government in Beijing. 

Gou is to seek the nomination of the opposition Kuomintang party in Taiwan’s 2020 presidential election. The party is regarded as having a friendlier stance toward Beijing than the ruling Democrat Progressive Party of President Tsai Ing-wen. 

Trump also was seen as breaking protocol as president-elect when he had a phone conversation with Tsai, something that prompted protest from the Chinese government, which regards Taiwan as a renegade island province. 

The Trump-Gou meeting occurred at a particularly sensitive time. The United States is in the final stages of negotiating a sweeping trade deal with China amid growing strategic tension between the two Pacific powers. 

Meanwhile, Gou — who has appeared in public previously alongside Trump to tout economic investment — is receiving criticism in the U.S. state of Wisconsin because what was envisioned as a $10 billion liquid crystal display factory project has fallen behind schedule. 

“Mr. Gou is spending a lot of money in Wisconsin and soon will announce even more investment there,” the White House press secretary said in her statement. 

Foxconn, which is a major supplier for Apple Inc. products, says Gou and Trump discussed the “positive progress of the Wisconn Valley Science and Technology Park project and other matters.” 

Trump, a strong supporter of the project in the political swing state, has proclaimed it the “eighth wonder of the world” for its scope and its projected economic impact, including as many as 13,000 jobs. 

There is concern about whether it will become a reality as envisioned because Foxconn failed to meet its job targets in 2018 to qualify for state tax credits and it has reduced the size of the factory it originally announced it would construct. 

Gou, speaking to reporters on Wednesday, disputed that anything significant has changed. 

“It is not right to say our investment in Wisconsin has changed,” he said. “We suspended the work around October and November last year because the weather there was snowy and icy cold. We will continue our work in May when the weather gets warmer.”

Gou on Thursday flew to Wisconsin on his private jet and met with Gov. Tony Evers at an airport terminal to further try to allay concerns about the project. 

Evers earlier told reporters he would emphasize to Gou that there must be adequate protections for taxpayers and environmental standards. 
…

A White House meeting between the current U.S. president and a prominent businessman who is seeking to become president of Taiwan is causing concern. 

The White House on Thursday sought to downplay any diplomatic or political sensitivities, saying President Donald Trump and Foxconn founder Terry Gou did not discuss support for the billionaire’s presidential campaign in Taiwan. 

“He is just a great friend” of Trump, White House press secretary Sarah Sanders said in a statement. 

The Taiwanese businessman, however, in a Facebook posting after Wednesday’s meeting and in a discussion with reporters, said he told the president of his candidacy and Trump responded that being president “was a tough job.” 

He also displayed a pen and autographed coin he said that Trump gave him.

“If I am elected president of the Republic of China, I will be a peacemaker and won’t become a troublemaker,” Gou told reporters. “I will strengthen Taiwan and the U.S. economically.” He also boasted that of all the presidential contenders, he is the only one to have secured an Oval Office meeting. 

Wednesday’s discussion is the first known circumstance of a sitting American president meeting with a Taiwanese presidential candidate since Washington broke diplomatic ties with Taipei in 1979 as part of its recognition of the communist government in Beijing. 

Gou is to seek the nomination of the opposition Kuomintang party in Taiwan’s 2020 presidential election. The party is regarded as having a friendlier stance toward Beijing than the ruling Democrat Progressive Party of President Tsai Ing-wen. 

Trump also was seen as breaking protocol as president-elect when he had a phone conversation with Tsai, something that prompted protest from the Chinese government, which regards Taiwan as a renegade island province. 

The Trump-Gou meeting occurred at a particularly sensitive time. The United States is in the final stages of negotiating a sweeping trade deal with China amid growing strategic tension between the two Pacific powers. 

Meanwhile, Gou — who has appeared in public previously alongside Trump to tout economic investment — is receiving criticism in the U.S. state of Wisconsin because what was envisioned as a $10 billion liquid crystal display factory project has fallen behind schedule. 

“Mr. Gou is spending a lot of money in Wisconsin and soon will announce even more investment there,” the White House press secretary said in her statement. 

Foxconn, which is a major supplier for Apple Inc. products, says Gou and Trump discussed the “positive progress of the Wisconn Valley Science and Technology Park project and other matters.” 

Trump, a strong supporter of the project in the political swing state, has proclaimed it the “eighth wonder of the world” for its scope and its projected economic impact, including as many as 13,000 jobs. 

There is concern about whether it will become a reality as envisioned because Foxconn failed to meet its job targets in 2018 to qualify for state tax credits and it has reduced the size of the factory it originally announced it would construct. 

Gou, speaking to reporters on Wednesday, disputed that anything significant has changed. 

“It is not right to say our investment in Wisconsin has changed,” he said. “We suspended the work around October and November last year because the weather there was snowy and icy cold. We will continue our work in May when the weather gets warmer.”

Gou on Thursday flew to Wisconsin on his private jet and met with Gov. Tony Evers at an airport terminal to further try to allay concerns about the project. 

Evers earlier told reporters he would emphasize to Gou that there must be adequate protections for taxpayers and environmental standards. 
…

The Nasdaq is adding fake meat to its diet.

Beyond Meat, the purveyor of plant-based burgers and sausages, made its debut on the stock exchange Thursday. It’s the first pure-play maker of vegan “meat” to go public, according to Renaissance Capital, which researches and tracks IPOs.

Beyond Meat raised about $240 million selling 9.6 million shares at $25 each. That values the company at about $1.5 billion.

The 10-year-old company has attracted celebrity investors like Microsoft co-founder Bill Gates and actor Leonardo DiCaprio and buzz for placing its products in burger joints like Carl’s Jr. It sells to 30,000 grocery stores, restaurants and schools in the U.S., Canada, Italy, the United Kingdom and Israel.

Beyond Meat CEO Ethan Brown said the IPO timing is right because the company wants to expand overseas. He also wants consumers to be able to buy shares since they have fueled the company’s growth.

“It really is a wonderful feeling to be able to welcome people in who have helped this brand,” Brown told The Associated Press.

Still, Beyond Meat has never made an annual profit; it lost $30 million last year. It’s also facing serious competition from other “new meat” companies like Impossible Foods and traditional players like Tyson Foods Inc. Tyson recently sold a stake in Beyond Meat because it plans to develop its own alternative meat.

The IPO comes amid growing consumer interest in plant-based foods for their presumed health and environmental benefits. U.S. sales of plant-based meats jumped 42% between March 2016 and March 2019 to a total of $888 million, according to Nielsen. Traditional meat sales rose 1% to $85 billion in that same time frame.

The trend is a global one. U.K. sales of meat alternatives jumped 18% over the last year, while sales of traditional meat and poultry slid 2%.

Even Burger King has recognized the appeal. Earlier this week, the fast food chain announced that it would start testing the Impossible Whopper, made with a plant-based burger from Impossible Foods, in additional markets after its monthlong test in St. Louis proved successful.

Brown says Beyond Meat’s ingredient list — it only uses natural ingredients that haven’t been genetically modified and doesn’t use soy — sets it apart from competitors. Its products are made from pea protein, canola oil, potato starch and other plant-based ingredients. Its burgers “bleed” with beet juice; its sausages are colored with fruit juice.

Unlike competitors, Beyond Meat products have also been sold in the meat section of groceries since 2016. That has broadened their appeal beyond vegetarians. Beyond Meat says a 26-week study last spring showed that 93% of Kroger customers who bought its burgers also bought animal meat during the same period.

Health comparisons are mixed. A four-ounce 92% lean burger from Laura’s Lean Beef has higher fat and cholesterol than a Beyond Meat burger, but Beyond Meat’s burger has higher sodium and carbohydrates and slightly less protein. The lean beef burger is 160 calories; a Beyond Meat burger is 270 calories.

Brown says Beyond Meat is working on reducing sodium, which is a natural byproduct of its manufacturing process. But he also points out that red meat and processed meat have been classified as possible carcinogens by the World Health Organization.

Beyond Meat also costs more. For $5.99, consumers can get two 4-ounce patties of Beyond Burger or four 4-ounce patties of Laura’s Lean Beef.

Brown said Beyond Meat has a five-year goal of getting at least one product — most likely beef — to cost less than the animal version. He expects the supply chain will grow as sales expand, which will lower the cost of raw ingredients like peas.

But Beyond Meat touts environmental benefits as well. The company says a plant-based burger takes 99% less water and 93% less land to produce than a beef burger, and generates 90% fewer greenhouse gas emissions.

Beyond Meat was founded in 2009 by Brown, a former clean energy executive. Brown’s family part-owned a Maryland dairy farm, so as a child, Brown spent weekends and summers on the farm. As he grew older, he began to question whether people really needed animals to produce meat.

Brown teamed up with two professors from the University of Missouri, Fu-hung Hsieh and Harold Huff, who had been developing soy-based chicken since the 1980s. By 2013, Beyond Meat was selling plant-based chicken strips nationwide at Whole Foods. (The company discontinued chicken earlier this year but says it’s working on a better recipe.)

For investors, the stock is not without risk. Amid its annual losses, Beyond Meat must also continue to spend heavily on research and development. The El Segundo, California-based company employs 63 scientists, engineers, researchers, technicians and chefs at its 30,000-square-foot lab. It also has manufacturing facilities in Columbia, Missouri.

Renaissance Capital, which has researched the company, says investors will likely tolerate the losses because the business is growing so quickly. Beyond Meat’s net revenue was $87.9 million last year, 170% higher than 2017.

In documents filed with the U.S. Securities and Exchange Commission, Beyond Meat says it will invest $40 million to $50 million in current and new manufacturing facilities and spend $50 million to $60 million on product development and sales. The rest will be used to pay down debt and fund operations.
…

President Donald Trump is increasingly reliant upon economic sanctions to achieve his foreign policy goals, despite a repeated emphasis that the use of military force remains a viable option.  However, these coercive measures, analysts say, have not produced their intended results, and at times have put the United States at odds with allies.  

Venezuela

In the case of Venezuela, the Trump sanctions that include the seizure of Venezuela’s oil assets in the United States, along with joining more than 50 other countries in recognizing Juan Guaido, the head of the National Assembly, as the interim president, have energized the opposition.  Despite the economic pain caused by the sanctions, the massive protests in the country, and reports of growing mid-level military support for the opposition, socialist leader Nicolas Maduro has continued to hold on to power through increasing political repression.

Short of using military force that could entangle the United States in a protracted civil war, there are few other measures the Trump administration can take to force democratic change in Venezuela.

“Because the costs are limited to us.  It also means the benefits will likely be limited.  We could accept more costs and achieve more benefits if we were for example, to invade these countries, change their governments, force them to adopt policies we want,” said Richard Weitz, a political-military analysis at Hudson Institute in Washington, DC.

Iran

Trump has more aggressively imposed unilateral sanctions than past presidents against countries like Venezuela, Iran, Cuba and North Korea, and in threatening to target more third party countries that violate U.S. restrictions.

“He’s following the thesis that, you know, began to be articulated in the Congress and in the 90s, which is you should force other countries to make a choice.  They can do business with us, or they can do business with Iran, or Cuba, North Korea,” said William Reinsch, an international business analyst at the Center for Strategic and International Studies in Washington, DC.

After withdrawing from the Iranian nuclear deal, negotiated by the previous administration of President Barack Obama, Trump’s security team recently warned third party countries, including allies South Korea and Japan, of impending sanctions if they continue to buy Iranian oil.

The unilateral sanctions have worked to some degree to force reluctant allies to go along with increasing economic pressure on the Iranian Islamic Republic to end its nuclear ambitions and support of armed militant groups in the Middle East.

“They’ve reassured allies in the Middle East that we’re taking a strong stand in Iran, they have caused European countries to disengage from the Iranian economy, even as their governments, although they are clearly opposed to his policies, they haven’t taken strong measures to confront the U.S. on that,” said Weitz.

Cuba

Trump on Wednesday threatened an economic embargo of Cuba for allegedly supporting Maduro in Venezuela with 20,000 troops.  The United States also recently announced it would enforce sanctions against Cuba permitting U.S. businesses that had property seized by the communist government of Fidel Castro 60 years ago, to sue international companies, some in Europe and Canada, that have since taken over these buildings.

These restrictions on Cuba and Iran not only potentially target allies that violate U.S. policy, they could also hurt American businesses by excluding them from these markets.

“The worst case for American companies is if they’re out, and the German, French, British competitors are in, because then they’re losing market share, and they’re losing market share long term, because they’re not going to get that back when the political situation changes,” said Reinsch.

North Korea

On North Korea the Trump administration led efforts for increased United Nations sanctions in 2017 that ban most of that country’s exports, along with unilateral sanctions on companies in China and Russia for supporting the North’s weapons program.  These restrictions likely contributed to Pyongyang suspending ballistic missile and nuclear tests and agreeing to engage in denuclearization talks.  However, the talks remain deadlocked over Washington’s demand for Pyongyang’s near complete disarmament prior to sanctions relief.

While sanctions can impose increased economic costs on an adversary country, analysts are skeptical they can force sweeping change, and say that over time these measures can become less effective as targeted countries step up evasion efforts.  
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President Donald Trump is increasingly reliant upon economic sanctions to achieve his foreign policy goals, despite a repeated emphasis that the use of military force remains a viable option.  However, these coercive measures, analysts say, have not produced their intended results, and at times have put the United States at odds with allies.  

Venezuela

In the case of Venezuela, the Trump sanctions that include the seizure of Venezuela’s oil assets in the United States, along with joining more than 50 other countries in recognizing Juan Guaido, the head of the National Assembly, as the interim president, have energized the opposition.  Despite the economic pain caused by the sanctions, the massive protests in the country, and reports of growing mid-level military support for the opposition, socialist leader Nicolas Maduro has continued to hold on to power through increasing political repression.

Short of using military force that could entangle the United States in a protracted civil war, there are few other measures the Trump administration can take to force democratic change in Venezuela.

“Because the costs are limited to us.  It also means the benefits will likely be limited.  We could accept more costs and achieve more benefits if we were for example, to invade these countries, change their governments, force them to adopt policies we want,” said Richard Weitz, a political-military analysis at Hudson Institute in Washington, DC.

Iran

Trump has more aggressively imposed unilateral sanctions than past presidents against countries like Venezuela, Iran, Cuba and North Korea, and in threatening to target more third party countries that violate U.S. restrictions.

“He’s following the thesis that, you know, began to be articulated in the Congress and in the 90s, which is you should force other countries to make a choice.  They can do business with us, or they can do business with Iran, or Cuba, North Korea,” said William Reinsch, an international business analyst at the Center for Strategic and International Studies in Washington, DC.

After withdrawing from the Iranian nuclear deal, negotiated by the previous administration of President Barack Obama, Trump’s security team recently warned third party countries, including allies South Korea and Japan, of impending sanctions if they continue to buy Iranian oil.

The unilateral sanctions have worked to some degree to force reluctant allies to go along with increasing economic pressure on the Iranian Islamic Republic to end its nuclear ambitions and support of armed militant groups in the Middle East.

“They’ve reassured allies in the Middle East that we’re taking a strong stand in Iran, they have caused European countries to disengage from the Iranian economy, even as their governments, although they are clearly opposed to his policies, they haven’t taken strong measures to confront the U.S. on that,” said Weitz.

Cuba

Trump on Wednesday threatened an economic embargo of Cuba for allegedly supporting Maduro in Venezuela with 20,000 troops.  The United States also recently announced it would enforce sanctions against Cuba permitting U.S. businesses that had property seized by the communist government of Fidel Castro 60 years ago, to sue international companies, some in Europe and Canada, that have since taken over these buildings.

These restrictions on Cuba and Iran not only potentially target allies that violate U.S. policy, they could also hurt American businesses by excluding them from these markets.

“The worst case for American companies is if they’re out, and the German, French, British competitors are in, because then they’re losing market share, and they’re losing market share long term, because they’re not going to get that back when the political situation changes,” said Reinsch.

North Korea

On North Korea the Trump administration led efforts for increased United Nations sanctions in 2017 that ban most of that country’s exports, along with unilateral sanctions on companies in China and Russia for supporting the North’s weapons program.  These restrictions likely contributed to Pyongyang suspending ballistic missile and nuclear tests and agreeing to engage in denuclearization talks.  However, the talks remain deadlocked over Washington’s demand for Pyongyang’s near complete disarmament prior to sanctions relief.

While sanctions can impose increased economic costs on an adversary country, analysts are skeptical they can force sweeping change, and say that over time these measures can become less effective as targeted countries step up evasion efforts.  
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The United States and China are nearing a trade deal that would roll back a portion of the $250 billion in U.S. tariffs on Chinese goods, Politico reported on Wednesday after U.S. Treasury Secretary Steven Mnuchin said the two countries completed “productive” talks in Beijing.

Mnuchin, along with U.S. Trade Representative Robert Lighthizer, held a day of discussions with Chinese Vice Premier Liu He, aimed at ending a trade war. The talks are to resume next week in Washington, where some observers say a deal announcement is possible.

“Ambassador Lighthizer and I just concluded productive meetings with China’s Vice Premier Liu He. We will continue our talks in Washington, D.C. next week,” Mnuchin wrote on his Twitter account. He gave no details.

The three appeared before cameras at the end of talks at a state guest house in Beijing, chatting amiably among themselves without speaking to reporters.

“The discussions remain focused toward making substantial progress on important structural issues and rebalancing the U.S.-China trade relationship,” White House Press Secretary Sarah Sanders told pool reporters, adding only scheduling details.

Unilateral action 

Politico quoted two people close to the talks as saying the sides have reached an understanding on how to enforce the agreement, but details need to be worked out. It would track closely to a framework described by Lighthizer to members of Congress: a series of meetings to address complaints about China’s compliance with the accord, ending in unilateral U.S. tariff actions if the dispute cannot be resolved.

A USTR spokesman declined to comment on the Politico story. Lighthizer has insisted on a strong enforcement mechanism to hold China to any promises to address U.S. demands for reforms of Beijing’s policies governing intellectual property rights, technology transfers and cyber-theft of trade secrets.

In written replies to questions on the Senate Finance Committee website on Wednesday, Lighthizer said: “To the extent that there are issues that cannot be resolved at the vice-premier level, then the United States would have the right to act unilaterally to enforce. This mechanism I described did not exist in past dialogues.”

Tariff removal outline

A deal would involve immediate removal of 10 percent tariffs on a portion of $200 billion in Chinese goods affected by that duty, with a phased removal of tariffs on remaining goods “quickly,” Politico said.

The United States has imposed tariffs on about $250 billion in Chinese goods, with a 25 percent duty on $50 billion worth of machinery, semiconductors, electronic and industrial components and autos.

U.S. officials have said privately that an enforcement mechanism for a deal and timelines for lifting tariffs are sticking points.

China’s official Xinhua news agency, in a brief report, noted that the latest talks had taken place and said the next rounds would take place in Washington next week as planned.

Beijing and Washington have cited progress on issues including intellectual property and forced technology transfer to help end a conflict marked by tit-for-tat tariffs that have cost both sides billions of dollars, disrupted supply chains and roiled financial markets.

Chinese officials have acknowledged that they view the enforcement mechanism as crucial, but said it must work two ways and cannot put restraints only on China.

In Washington, people familiar with the talks say the question of how and when any U.S. tariffs on $250 billion worth of Chinese goods will be removed will probably be among the last issues to be resolved.

U.S. President Donald Trump has said he may keep some tariffs on Chinese goods for a “substantial period.”

The United States has also been pressing China to further open its market to U.S. firms. China has repeatedly pledged to continue reforms and make it easier for foreign companies to operate in the country.

In comments published Wednesday, China’s top banking and insurance regulator said the government would further open up its banking and insurance sectors.
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