IGM Credit, IGM FX and Rates
By Tim Cheung 14 May 2019
US President Trump tweeted on 5 May that tariffs on the USD200bn in Chinese imports will rise from 10% to 25% on 10 May and that an additional USD325bn of goods will get a 25% tariff shortly. Trump attributed his decision to the slower-than-expected progress of the US-China trade negotiations and China's attempt to renegotiate. US Trade Representative Lighthizer and US Treasury Secretary Mnuchin had implicated on 6 May that Chinese officials tried to re-open negotiation on areas that had already been negotiated. In the eyes of US negotiators, Chinese officials' moves represented an erosion of commitments by China and a big change in direction for the negotiation.