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New tarrifs on the way

According to zerohedge, Earlier today we reported that contrary to the conventional wisdom that Trump blasted off his 1pm China tariff tweet – in which he single-handedly ended the ceasefire between the US and China when he unveiled 10% tariffs on $300BN in Chinese imports starting September – on his own, instead a number of

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According to zerohedge,

Earlier today we reported that contrary to the conventional wisdom that Trump blasted off his 1pm China tariff tweet – in which he single-handedly ended the ceasefire between the US and China when he unveiled 10% tariffs on $300BN in Chinese imports starting September – on his own, instead a number of officials were in the room with President Trump as he drafted this Tweet, advising him on language. Among those: Treasury Secretary Mnuchin, Acting COS Mulvaney, trade advisor Navarro, and NEC Director Kudlow.

Now, we also learn that ahead of hitting send on his shocking tweet that sent stocks and bond yields plunging, there was also some discussion whether Trump should warn China in advance of blasting his decision to the entire world. However, according to Bloomberg, Trump ruled out giving Beijing advance notice of his intent to slap a new 10% tariff on $300 billion in Chinese goods in an Oval Office meeting before he announced the duties.

Citing “several people familiar with the discussion”, Bloomberg reports that during the meeting, Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer briefed Trump on their talks in Shanghai this week with their Chinese counterparts. While the White House called the talks “constructive” in a statement issued Wednesday, Trump concluded that the two U.S. officials actually came away with nothing.

Meanwhile, Mnuchin and Lighthizer knew the president was considering a new round of tariffs before they left for Shanghai, three of the people said. Trump has been unhappy about what the U.S. views as Chinese back-tracking on trade talks, and has recently said he believes Beijing may be trying to wait until after the presidential election in 2020 to conclude a deal.

In any case, fast forward to Thursday morning, and the meeting in the Oval Office which was reportedly “tense”, and where Mnuchin recommended that the U.S. notify Beijing before Trump, but Trump refused suggesting that the trade hawks are now fully in charge of the situation in the White House. At the same time, acting Chief of Staff Mick Mulvaney talked through the market effects of increasing the China tariffs, Bloomberg sources reported.

Source: zerohedge, bloomberg

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