He warned the Chinese authorities against the temptation to play the watch until the US elections of 2020 in the hope that he will not be re-elected. “Think about what would happen to China if I won,” he said in a tweet. “The terms of the agreement would be MUCH BETTER!”, He threatened as new tariffs strengthened on billions of dollars of Chinese products came into effect on Sunday. “Although I'm sure they'd love to negotiate with a new administration to continue to scam the US ($ 600 billion a year), more than 16 months is a long time to suffer a hemorrhage from jobs and businesses in the long term, “added the US president.
On the American side, the economy and, in particular, the manufacturing industry dear to Donald Trump is not spared by the tensions with the Asian giant. Shortly after the presidential tweets, the professional association ISM reported a contraction of the manufacturing sector in August, ending 35 months of growth in a row. The ISM manufacturing index has even fallen to its lowest level since January 2016 when Donald Trump took office. “Trade issues remain the biggest problem, reflected in the significant decline in new export orders” explained Timothy Fiore, head of the ISM survey.
Too much uncertainty
“The comments of respondents reflect a significant drop in business confidence,” said the ISM association. “This is a very dark report,” said Ian Shepherdson, Chief Economist at Pantheon Macroeconomics, noting that that the export order index fell to its lowest level since April 2009.
Although Donald Trump exclusively blames the economic slowdown on the central bank's monetary policy, the business world deplores the tariff war between the United States and China, noting that it affects not only US industrialists but also the US. moral of entrepreneurs in general. “Uncertainty ultimately leads to nothing good,” said Tuesday the president of the American Chamber of Commerce, Tom Donohue, on CNBC.
The US economy has created 165,000 jobs on average monthly during the first half compared to 223,000 in 2018. For the manufacturing sector alone, 8,000 jobs were created each month against 22,000 last year. Last week, Donohue called on US leaders to take immediate action to restore business confidence and maintain growth in the US economy.
“In the midst of all the talk about a possible recession, it's important for everyone to remember this: economic expansions do not stop because of natural causes,” he wrote in a Washington column. Post. “They often die because of missteps and political mistakes, and the biggest mistake our leaders could make at the moment – exposing our economy to a greater risk of slowing down – would be to increase uncertainty.” he continued in the text, urging the Trump administration to lift tariffs and resume trade talks with China “now”.
US Republican Senators Steve Daines and David Perdue, head of a US-China “US-China Task Force” delegation, were in China on Tuesday meeting with Chinese Vice Premier Liu He, reported on Tuesday. official agency China New. US officials have recalled the importance of US-China relations and expressed their opposition to economic and trade conflicts between the two countries. They further emphasized their willingness to continue to play “a positive role” to promote harmonious development of bilateral relations.
For the moment, trade talks have stalled, Beijing refusing to agree in an agreement the requirements of Donald Trump: the end of commercial practices that he deem unfair like the subsidy of Chinese state enterprises. On Monday, China even announced that it is filing a complaint with the World Trade Organization (WTO) to challenge the new US tariffs tightened.