Trump on US-China trade war: ‘I could declare a national emergency’

SAINT-JEAN-DE-LUZ, France — President Donald Trump said Sunday he could declare the escalating U.S.-China trade war as a national emergency if he wanted to. “In many ways this is an emergency,” Trump said at the G-7 leaders meeting of the ongoing trade battle between the world’s top two economies. When asked if Trump had second thoughts about Friday’s move to escalate the trade war with China, Trump said “Yup.” During the bilateral with Johnson, Trump dismissed concerns that leaders at the G-7 a


SAINT-JEAN-DE-LUZ, France — President Donald Trump said Sunday he could declare the escalating U.S.-China trade war as a national emergency if he wanted to. “In many ways this is an emergency,” Trump said at the G-7 leaders meeting of the ongoing trade battle between the world’s top two economies. When asked if Trump had second thoughts about Friday’s move to escalate the trade war with China, Trump said “Yup.” During the bilateral with Johnson, Trump dismissed concerns that leaders at the G-7 a
Trump on US-China trade war: ‘I could declare a national emergency’ Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-25  Authors: amanda macias
Keywords: news, cnbc, companies, war, declare, president, trump, national, billion, g7, emergency, tariffs, white, think, trade, uschina, china


Trump on US-China trade war: 'I could declare a national emergency'

U.S. President Donald Trump attends a bilateral meeting with Britain’s Prime Minister Boris Johnson during the G7 summit on August 25, 2019 in Biarritz, France.

SAINT-JEAN-DE-LUZ, France — President Donald Trump said Sunday he could declare the escalating U.S.-China trade war as a national emergency if he wanted to.

“In many ways this is an emergency,” Trump said at the G-7 leaders meeting of the ongoing trade battle between the world’s top two economies.

“I could declare a national emergency, I think when they steal and take out and intellectual property theft anywhere from $300 billion to $500 billion a year and when we have a total lost of almost a trillion dollars a year for many years,” Trump said, adding that he had no plan right now to call for a national emergency.

“Actually we are getting along very well with China right now, we are talking. I think they want to make a deal much more than I do. I’m getting a lot of money in tariffs its coming in by the billions. We’ve never gotten 10 cents from China, so we will see what happens.”

Trump’s comments come as he met with Britain’s Prime Minister Boris Johnson kicking off Group of 7 meetings in the French seaside town of Biarritz.

Clouding the G-7 gathering, which represents the world’s major industrial economies, are the tit-for-tat tariffs between Washington and Beijing.

On Friday, Trump said he would raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1. What’s more, tariffs on another $300 billion of Chinese goods, which start to take effect on Sept. 1, will now be 15% instead of 10%.

When asked if Trump had second thoughts about Friday’s move to escalate the trade war with China, Trump said “Yup.” “I have second thoughts about everything,” he added.

Hours later, the White House issued a statement saying that Trump meant to say that he wished he had raised tariffs on Beijing even higher.

“His answer has been greatly misinterpreted. President Trump responded in the affirmative – because he regrets not raising the tariffs higher,” White House spokeswoman Stephanie Grisham wrote in a statement.

During the bilateral with Johnson, Trump dismissed concerns that leaders at the G-7 and other U.S. allies would pressure him in ending the trade war with China.

“I think they respect the trade war, it has to happen. China has been, well I can only speak for the United States, I can’t say what they are doing to the U.K. and other places, but from the standpoint of the United States what they’ve done is outrageous that presidents and administrations allowed them to get away with taking hundreds of billions of dollars out every year and putting it into China,” Trump said.

“Our country is doing really well, we had horrible trade deals and I’m straightening them out. The biggest one by far is China,” he added.

This article was updated to include a White House statement.


Company: cnbc, Activity: cnbc, Date: 2019-08-25  Authors: amanda macias
Keywords: news, cnbc, companies, war, declare, president, trump, national, billion, g7, emergency, tariffs, white, think, trade, uschina, china


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White House says Trump regrets not raising tariffs on China higher

President Donald Trump attends the first working session of the G7 Summit on August 25, 2019 in Biarritz, France. SAINT-JEAN-DE-LUZ, France — Hours after President Donald Trump said Sunday he had “second thoughts” about escalating the trade war with China, the White House sought to explain his remark because it was “greatly misinterpreted.” President Trump responded in the affirmative – because he regrets not raising the tariffs higher,” White House spokeswoman Stephanie Grisham wrote in a state


President Donald Trump attends the first working session of the G7 Summit on August 25, 2019 in Biarritz, France. SAINT-JEAN-DE-LUZ, France — Hours after President Donald Trump said Sunday he had “second thoughts” about escalating the trade war with China, the White House sought to explain his remark because it was “greatly misinterpreted.” President Trump responded in the affirmative – because he regrets not raising the tariffs higher,” White House spokeswoman Stephanie Grisham wrote in a state
White House says Trump regrets not raising tariffs on China higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-25  Authors: amanda macias
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White House says Trump regrets not raising tariffs on China higher

President Donald Trump attends the first working session of the G7 Summit on August 25, 2019 in Biarritz, France.

SAINT-JEAN-DE-LUZ, France — Hours after President Donald Trump said Sunday he had “second thoughts” about escalating the trade war with China, the White House sought to explain his remark because it was “greatly misinterpreted.”

“This morning in the bilat with the U.K., the president was asked if he had ‘any second thought on escalating the trade war with China’. His answer has been greatly misinterpreted. President Trump responded in the affirmative – because he regrets not raising the tariffs higher,” White House spokeswoman Stephanie Grisham wrote in a statement.

The statement came hours after Trump held a bilateral meeting with British Prime Minister Boris Johnson at the G-7 in Biarritz, France. During the meeting, Trump was asked if he had second thoughts about escalating the trade war with China. Trump said, “Yup.” The question was repeated and he added, “I have second thoughts about everything.”

Last week, Trump said he would raise existing duties on $250 billion in Chinese products to 30% from 25% on Oct. 1. What’s more, tariffs on another $300 billion of Chinese goods, which start to take effect on Sept. 1, will now be 15% instead of 10%.

The moves were the latest punches in a tit-for-tat trade war between the world’s two largest economies that has spooked investors and raised fears that the global economy will dip into a recession.

Trump downplayed those concerns saying “our country is doing really well, we had horrible trade deals and I’m straightening them out.”


Company: cnbc, Activity: cnbc, Date: 2019-08-25  Authors: amanda macias
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Trump can use these powers to pressure US companies to leave China

President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. Jim Watson | AFP | Getty ImagesHours after China announced retaliatory tariffs on U.S. goods on Friday, President Donald Trump ordered U.S. companies to “start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” The stakes are high: U.S. companies invested a total of $256 billion in China between 1990 and 2017, compared with


President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. Jim Watson | AFP | Getty ImagesHours after China announced retaliatory tariffs on U.S. goods on Friday, President Donald Trump ordered U.S. companies to “start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” The stakes are high: U.S. companies invested a total of $256 billion in China between 1990 and 2017, compared with
Trump can use these powers to pressure US companies to leave China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-24
Keywords: news, cnbc, companies, emergency, china, chinese, leave, international, pressure, law, legal, companies, trump, tariffs, president, powers


Trump can use these powers to pressure US companies to leave China

President Donald Trump speaks to the media as he departs the White House in Washington, DC, on August 21, 2019. Jim Watson | AFP | Getty Images

Hours after China announced retaliatory tariffs on U.S. goods on Friday, President Donald Trump ordered U.S. companies to “start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” The stakes are high: U.S. companies invested a total of $256 billion in China between 1990 and 2017, compared with $140 billion Chinese companies have invested in the United States, according to estimates by the Rhodium Group research institute. Some U.S. companies had been shifting operations out of China even before the tit-for-tat tariff trade war began more than a year ago. But winding down operations and shifting production out of China completely would take time. Further, many U.S. companies such as those in the aerospace, services and retail sectors would be sure to resist pressure to leave a market that is not only huge but growing. Unlike China, the United States does not have a centrally planned economy. So what legal action can the president take to compel American companies to do his bidding? Trump does have some powerful tools that would not require approval from U.S. Congress:

More tariffs

Trump could do more of what he’s already doing, that is hiking tariffs to squeeze company profits enough for them to make it no longer worth their while to operate out of China. Trump on Friday boosted by 5 percentage points the 25% tariffs already in place on nearly $250 billion of Chinese imports, including raw materials, machinery, and finished goods, with the new higher 30% rate to take effect on Oct. 1. He said planned 10% tariffs on about $300 billion worth of additional Chinese-made consumer goods would be raised to 15%, with those measures set to take effect on Sept. 1 and Dec. 15. In addition to making it more expensive to buy components from Chinese suppliers, tariff hikes punish U.S. firms that manufacture goods through joint ventures in China.

“National Emergency”

Trump could treat China more like Iran and order sanctions, which would involve declaring a national emergency under a 1977 law called the International Emergency Economic Powers Act, or IEEPA. Once an emergency is declared, the law gives Trump broad authority to block the activities of individual companies or even entire economic sectors, former federal officials and legal experts said. For example, by stating that Chinese theft of U.S. companies’ intellectual property constitutes a national emergency, Trump could order U.S. companies to avoid certain transactions, such as buying Chinese technology products, said Tim Meyer, director of the International Legal Studies Program at Vanderbilt Law School in Nashville. Trump used a similar strategy earlier this year when he said illegal immigration was an emergency and threatened to put tariffs on all Mexican imports. Past presidents have invoked IEEPA to freeze the assets of foreign governments, such as when former President Jimmy Carter in 1979 blocked assets owned by the Iranian government from passing through the U.S. financial system. “The IEEPA framework is broad enough to do something blunt,” said Meyer. Using it could risk unintended harm to the U.S. economy, said Peter Harrell, a former senior State Department official responsible for sanctions, now at the Center for a New American Security. U.S. officials would need to weigh the impact of China’s likely retaliation and how U.S. companies would be affected. Invoking IEEPA could also trigger legal challenges in U.S. courts, said Mark Wu, a professor of international trade at Harvard Law School.

Federal procurement curbs

Another option that would not require congressional action would be to ban U.S. companies from competing for federal contracts if they also have operations in China, said Bill Reinsch, a senior adviser at the Center for Strategic and International Studies think tank. Such a measure might be targeted specifically at certain sectors since a blanket order would hit companies such as Boeing (BA.N), which is both a key weapons maker for the Pentagon and the top U.S. exporter. Boeing opened its first completion plant for 737 airliners in China in December, a strategic investment aimed at building a sales lead over its European arch-rival Airbus (AIR.PA). Boeing and Airbus have been expanding their footprint in China as they vie for orders in the country’s fast-growing aviation market, which is expected to overtake the United States as the world’s largest in the next decade.

1917 Trading with the Enemy Act


Company: cnbc, Activity: cnbc, Date: 2019-08-24
Keywords: news, cnbc, companies, emergency, china, chinese, leave, international, pressure, law, legal, companies, trump, tariffs, president, powers


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China’s enormous debt ‘no longer can be ignored,’ analyst says

The world’s second biggest economy, which is slowing, is past a point where it cannot ignore its enormous debt anymore, according to an analyst. Fraser Howie, an independent analyst, told CNBC Tuesday that there’s a “whole host of hidden debt” in China, which had kick started stimulus this year as its economy slowed. “China is very much past the tipping point where the debt simply no longer can be ignored. “China … (had) this huge stimulus and turn on the credit taps and they drove all this gl


The world’s second biggest economy, which is slowing, is past a point where it cannot ignore its enormous debt anymore, according to an analyst. Fraser Howie, an independent analyst, told CNBC Tuesday that there’s a “whole host of hidden debt” in China, which had kick started stimulus this year as its economy slowed. “China is very much past the tipping point where the debt simply no longer can be ignored. “China … (had) this huge stimulus and turn on the credit taps and they drove all this gl
China’s enormous debt ‘no longer can be ignored,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: shriya sharma
Keywords: news, cnbc, companies, china, started, stimulus, ignored, longer, analyst, rate, demand, told, economy, debt, enormous, chinas, slowing, howie


China's enormous debt 'no longer can be ignored,' analyst says

The world’s second biggest economy, which is slowing, is past a point where it cannot ignore its enormous debt anymore, according to an analyst.

Fraser Howie, an independent analyst, told CNBC Tuesday that there’s a “whole host of hidden debt” in China, which had kick started stimulus this year as its economy slowed.

“China is very much past the tipping point where the debt simply no longer can be ignored. The cost of servicing the debt … simply distracts from almost everything else,” said Howie.

China’s total debt — corporate, household and government — rose to over 300% of its GDP in the first quarter of 2019, slightly up from the same period a year earlier, according to a report by the Institute of International Finance.

“China … (had) this huge stimulus and turn on the credit taps and they drove all this global demand,” Howie said. “But there clearly was going to be a cost … and now they are suffering (from) it.”

China’s debt levels rapidly shot up a few years ago as its banks extended record amounts of credit to drive growth, which led to the Asian giant undertaking deleveraging efforts, or the process of reducing debt.

But the trade war has put a dent in its efforts to pare its massive debt as Beijing sought ways to boost its slowing economy, which was at its lowest growth in 27 years. Earlier this year, banks started to increase its lending again, with new loans surging to a record high.

In what some analysts called effectively a rate cut, the People’s Bank of China also this week launched a key interest rate reform — the loan prime rate — that would make borrowing costs for companies cheaper, and theoretically boost investment.

But Howie told CNBC that the issue was really whether there would be demand for more credit.

“The Chinese economy is clearly slowing, there are a lot of headwinds, there’re companies leaving China. China’s becoming a much harder investment case for a number of reasons. So is the underlying demand there or not?” he asked.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: shriya sharma
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Trump says he’s ordering American companies to immediately start looking for an alternative to China

President Donald Trump on Friday said he was ordering U.S. companies to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” Trump also said he was ordering all U.S. postal carriers, including FedEx, Amazon, UPS and United States Post Office, “to SEARCH FOR & REFUSE all deliveries of Fentanyl from China (or anywhere else!).” And Trump said he will respond this afternoon to China’s newest round of tariffs on U.S. good


President Donald Trump on Friday said he was ordering U.S. companies to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.” Trump also said he was ordering all U.S. postal carriers, including FedEx, Amazon, UPS and United States Post Office, “to SEARCH FOR & REFUSE all deliveries of Fentanyl from China (or anywhere else!).” And Trump said he will respond this afternoon to China’s newest round of tariffs on U.S. good
Trump says he’s ordering American companies to immediately start looking for an alternative to China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: kevin breuninger
Keywords: news, cnbc, companies, postal, respond, american, companies, powell, trump, orders, immediately, tweets, ups, start, china, looking, president, ordering, hes, alternative


Trump says he's ordering American companies to immediately start looking for an alternative to China

President Donald Trump on Friday said he was ordering U.S. companies to “immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.”

Trump also said he was ordering all U.S. postal carriers, including FedEx, Amazon, UPS and United States Post Office, “to SEARCH FOR & REFUSE all deliveries of Fentanyl from China (or anywhere else!).”

And Trump said he will respond this afternoon to China’s newest round of tariffs on U.S. goods.

The White House did not immediately respond when asked if the announcement, delivered in a four-part Twitter thread Friday morning, constituted an official order from the president.

It was not immediately clear how, or under what authority, the president could implement these declared orders, or whether he had already done so.

Stocks sank to session lows shortly after Trump’s tweets. The Dow Jones Industrial Average fell more than 435 points, or 1.6%, while the S&P 500 slid 1.7% and the Nasdaq Composite dove 2%.

In a statement, UPS said that it “follows all applicable laws and administrative orders of the governments in the countries where we do business. We work closely with regulatory authorities to monitor for prohibited substances.”

FedEx also responded: “FedEx already has extensive security measures in place to prevent the use of our networks for illegal purposes. We follow the laws and regulations everywhere we do business and have a long history of close cooperation with authorities.”

Amazon and the Postal Service were not immediately available for comment.

Trump’s tweets followed another missive against Federal Reserve Chairman Jay Powell, who had just pledged to “act as appropriate” to sustain the U.S. economy amid the “deteriorating” global economic outlook.

In an apparent response, Trump tweeted: “Who is our bigger enemy,” Powell or Chinese President Xi Jinping?


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: kevin breuninger
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Trump’s trade threats increased the chances for a recession, but also a Fed rate cut

Trump, in a pair of tweets, criticized Powell for a lack of action, and asked who is a bigger enemy, the Fed chairman or the president of China? Trump then went on to tweet that the U.S. does not need China, China has been stealing from America, and that U.S. companies are “ordered” to look for alternatives. An inverted yield curve, where investors look for more yield on shorter term securities, has been a fairly reliable recession warning. “It’s almost like the administration was expecting the


Trump, in a pair of tweets, criticized Powell for a lack of action, and asked who is a bigger enemy, the Fed chairman or the president of China? Trump then went on to tweet that the U.S. does not need China, China has been stealing from America, and that U.S. companies are “ordered” to look for alternatives. An inverted yield curve, where investors look for more yield on shorter term securities, has been a fairly reliable recession warning. “It’s almost like the administration was expecting the
Trump’s trade threats increased the chances for a recession, but also a Fed rate cut Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: patti domm
Keywords: news, cnbc, companies, manufacturing, cut, increased, powell, trumps, threats, tariffs, trade, rate, recession, curve, chances, china, economy, president, fed


Trump's trade threats increased the chances for a recession, but also a Fed rate cut

The latest escalation in the trade war between the U.S. and China increases odds the U.S. economy will fall into recession— and that the Federal Reserve will try to stop it with more aggressive interest rate cuts.

President Donald Trump called on U.S. companies Friday to find alternatives to China, following a new round of Chinese tariffs on $75 billion in U.S. goods, including automobiles.

Trump fired off an angry tweetstorm against China, shortly after he once more criticized Fed Chairman Jerome Powell, who gave a measured speech at the Fed’s annual Jackson Hole symposium Friday morning. Powell left the door open for more rate cuts but did not go so far as to promise any — clearly disappointing the president, as well as some market pros who wanted to hear a more dovish Fed.

Trump, in a pair of tweets, criticized Powell for a lack of action, and asked who is a bigger enemy, the Fed chairman or the president of China?

Trump then went on to tweet that the U.S. does not need China, China has been stealing from America, and that U.S. companies are “ordered” to look for alternatives. Treasury yields slid and stocks sold off, with companies doing business in China among the hardest hit.

“Chinese retaliation clearly shows they are making no progress on negotiations for a deal, and the president just upped the ante again. They are firing at each other without any restraint at this point. Recession odds are a lot higher. He’s about to push the economy off the rails. It’s very close,” said Mark Zandi, chief economist at Moody’s Analytics.

As the Dow lost 2% Friday afternoon, the 2-year to 10-year curve flattened and briefly inverted. An inverted yield curve, where investors look for more yield on shorter term securities, has been a fairly reliable recession warning.

“These are risk-off moments that we think do mean more tightening in financial conditions and increases in spikes and volatility, that tend to be unhelpful for the outlook,” said Michael Gapen, chief U.S. economist at Barclays. “It raises the amount of insurance the Fed needs to put into place to support the economy.”

Gapen said Powell indicated he could do more easing when he spoke Friday, and that there were more risks since the Fed met in July, including the protests in Hong Kong and risks around Italian politics. But the overriding concern he mentioned was trade uncertainties.

“I think the Fed was prepared to ease in September. This locks that in. I suppose if things deteriorate enough, we start asking do they do 50 basis points instead of 25,” said Gapen.

Art Hogan, chief market strategist at National Securities, said the tensions are now at a heightened level, creating an even more uncertain level for markets. “It’s almost like the administration was expecting the Fed to announce a rate cut at the Jackson Hole meeting. And since Powell did not deliver, he went to def-com 5, ” said Hogan.

Historically, the Fed does not act at its annual Jackson Hole retreat.

Gapen said the trade war is hurting global trade revenues. For the U.S., exports make up about 15% of GDP, but for other countries, the contribution is about twice as much. Trade issues are hitting economies globally, and Germany, for instance, has seen a modest contraction in growth while the U.S. is still growing at about 2%.

“The risk is it gives you the illusion the U.S. economy will do fine,” said Gapen, adding that there’ s a question of how long the U.S. can avoid also seeing a downturn.

Citigroup global economist Cesar Rojas said it’s possible Trump’s tweet threats could be a precursor to a much more intense phase of the trade wars, which would be even more damaging to both economies.

“To me that sounds like he will eventually announce that tariffs on China will be increased and companies will perhaps have six months, or a year, before these tariffs go up to these levels, or even that trade with China is blocked,” said Rojas.

Economists said the Chinese tariffs and Trump’s comments on Twitter raise the level of uncertainty for U.S.businesses, which already have curbed spending.

“I think businesses are already on the edge,” Zandi said. “If the president pushes this, they’ll go over the edge. It will be too much to bear. They are right now sitting on their hands. But if the president goes much further, they’re going to start cutting, and laying off workers. That’s recession. Manufacturers are already in recession.”

On Thursday, the IHS Markit Purchasing Managers Index showed that the U.S. manufacturing sector was in contraction in July, for the first time since the financial crisis. A weakening in services PMI showed that the manufacturing downturn may be spreading, but service PMI remained above 50, which means expansion..

Zandi said Moody’s Analytics has an indicator for daily recession odds based on financial inputs, like credit spreads, stock volatility. The indicator shows a 45% chance of recession in the next 12 months. That includes yield curve metrics so it rose, as the curve inverted this week.

“What we’re seeing right now is it’s going to hurt both economies,” said Rojas. “Basically, the extent of where we are in the U.S. economy is that external factors are already weighing on manufacturing and agriculture.” He said the manufacturing PMI confirmed that the U.S. will become more sensitive to tariffs and trade wars.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: patti domm
Keywords: news, cnbc, companies, manufacturing, cut, increased, powell, trumps, threats, tariffs, trade, rate, recession, curve, chances, china, economy, president, fed


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Apple and chip stocks slide after Trump orders US companies to look for alternative to China

Semiconductor stocks and shares of Apple slid more than their peers in the tech sector on Friday, after President Donald Trump said U.S. companies should “immediately start looking for an alternative” to their operations in China. Among the chip companies, Qualcomm slid 4.7%, Nvidia lost 5.2%, Advanced Micro Devices dropped 7.4%, Micron fell roughly 4% and Broadcom slid 5.3%. Apple has felt the effects of Trump’s trade war with China more than most technology companies. Trump’s comments on Frida


Semiconductor stocks and shares of Apple slid more than their peers in the tech sector on Friday, after President Donald Trump said U.S. companies should “immediately start looking for an alternative” to their operations in China. Among the chip companies, Qualcomm slid 4.7%, Nvidia lost 5.2%, Advanced Micro Devices dropped 7.4%, Micron fell roughly 4% and Broadcom slid 5.3%. Apple has felt the effects of Trump’s trade war with China more than most technology companies. Trump’s comments on Frida
Apple and chip stocks slide after Trump orders US companies to look for alternative to China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: annie palmer
Keywords: news, cnbc, companies, companies, trumps, trump, orders, look, immediately, war, trade, tariffs, slid, slide, apple, alternative, start, china, chip, stocks


Apple and chip stocks slide after Trump orders US companies to look for alternative to China

Semiconductor stocks and shares of Apple slid more than their peers in the tech sector on Friday, after President Donald Trump said U.S. companies should “immediately start looking for an alternative” to their operations in China.

Shares of Apple ended the day down 4.6%, while the VanEck Vectors Semiconductor ETF declined 4.1%. Among the chip companies, Qualcomm slid 4.7%, Nvidia lost 5.2%, Advanced Micro Devices dropped 7.4%, Micron fell roughly 4% and Broadcom slid 5.3%.

The tech-heavy Nasdaq was off 2.6%, while the Dow Jones Industrial Average slid 2.3% and the S&P 500 fell 2.5%.

Apple has felt the effects of Trump’s trade war with China more than most technology companies. The company conducts the majority of its manufacturing process in China and the Chinese market represents a significant portion of its sales.

Trump’s comments on Friday mark the latest fallout in the trade war between the U.S. and China.

Markets immediately began to turn lower after Trump tweeted: “Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing … your companies HOME and making your products in the USA.”

Trump’s tweet came after China on Friday pledged to levy tariffs on $75 billion more of U.S. goods, including autos. The new tariffs followed Trump’s plan to impose duties on $300 billion worth of China’s goods by December.


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: annie palmer
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VMware adjusts for a ‘two trading-bloc world’ due to US-China trade war, says CEO

American companies are having to adjust to operating in two distinct Chinese and American marketplaces as the trade war escalates, VMware CEO Patrick Gelsinger told CNBC on Friday. “We are adjusting our strategy to really be in a two trading-bloc world,” Gelsinger said. The escalating trade war between the world’s two largest economies has been going on for over a year, with China announcing retaliatory measures Friday. The cloud software company also announced Thursday that it’s acquiring softw


American companies are having to adjust to operating in two distinct Chinese and American marketplaces as the trade war escalates, VMware CEO Patrick Gelsinger told CNBC on Friday. “We are adjusting our strategy to really be in a two trading-bloc world,” Gelsinger said. The escalating trade war between the world’s two largest economies has been going on for over a year, with China announcing retaliatory measures Friday. The cloud software company also announced Thursday that it’s acquiring softw
VMware adjusts for a ‘two trading-bloc world’ due to US-China trade war, says CEO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: jessica bursztynsky
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VMware adjusts for a 'two trading-bloc world' due to US-China trade war, says CEO

American companies are having to adjust to operating in two distinct Chinese and American marketplaces as the trade war escalates, VMware CEO Patrick Gelsinger told CNBC on Friday.

“We are adjusting our strategy to really be in a two trading-bloc world,” Gelsinger said. “Everybody has sort of realized this dispute will go on for a while and we’re working through how best to manage our businesses in light of that.”

The escalating trade war between the world’s two largest economies has been going on for over a year, with China announcing retaliatory measures Friday.

Beijing will impose new tariffs on $75 billion worth of U.S. goods and resume duties on American autos, starting Sept. 1 and Dec. 15, respectively. It follows President Donald Trump’s threat to impose 10% tariffs on $300 billion of Chinese goods not already subject to duties, also set to be implemented on Sept. 1 and Dec. 15.

“I believe in many cases, customers are saying, ‘how do I continue to do business with and within China even as there’s an increasing challenge?'” Gelsinger said. “I think most companies are already figuring out how to live in that kind of world already. And clearly, we expect that our strategy needs to accommodate that.”

Gelsinger appeared on CNBC’s “Squawk Box” a day after VMware’s second-quarter earnings and revenue beat beat Wall Street estimates. The cloud software company also announced Thursday that it’s acquiring software companies Pivotal Software and Carbon Black in separate deals.

Shares of VMware were down 8.9% on Friday afternoon.

VMware “saw good results from our China business last quarter,” Gelsinger said.

“Not to the level we would have hoped, but still saw growth there,” the CEO added. “We’re making adjustments to it even as we’re long-term committed to China. We also expect there will be increasing long-term barriers between the two markets. And we have to adjust, and I believe every other business will do likewise.”


Company: cnbc, Activity: cnbc, Date: 2019-08-23  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, vmware, business, tradingbloc, american, companies, world, trade, adjusts, uschina, war, gelsinger, software, china, ceo


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Palantir CEO says Google shouldn’t rule A.I.

Palantir CEO Alex Karp said billionaire investor Peter Thiel is right to question Google’s decision to work in China, while abandoning military contracts in the US. By contrast, Karp said in an interview with Bloomberg that Palantir “doesn’t work with adversaries of the US.” “Does the average American trust a platform company, including Google, to decide whether we should be the dominant player in AI?” At the same time, Google has sought to make inroads into China, through a number of AI, cloud


Palantir CEO Alex Karp said billionaire investor Peter Thiel is right to question Google’s decision to work in China, while abandoning military contracts in the US. By contrast, Karp said in an interview with Bloomberg that Palantir “doesn’t work with adversaries of the US.” “Does the average American trust a platform company, including Google, to decide whether we should be the dominant player in AI?” At the same time, Google has sought to make inroads into China, through a number of AI, cloud
Palantir CEO says Google shouldn’t rule A.I. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: annie palmer
Keywords: news, cnbc, companies, ai, intelligence, thiel, trump, work, palantir, ceo, china, company, googles, karp, google, rule, shouldnt, thiels


Palantir CEO says Google shouldn't rule A.I.

Palantir CEO Alex Karp said billionaire investor Peter Thiel is right to question Google’s decision to work in China, while abandoning military contracts in the US.

Google has faced renewed scrutiny from Thiel, a Trump supporter and Facebook board member, who said last month that the FBI and CIA should investigate the company to see if it has been “infiltrated” by foreign intelligence agencies.

By contrast, Karp said in an interview with Bloomberg that Palantir “doesn’t work with adversaries of the US.”

“Does the average American trust a platform company, including Google, to decide whether we should be the dominant player in AI?” Karp told Bloomberg. “Is that something we want to outsource to a small number of platforms in a very small part of the world, with people who are from a very narrow sliver of society?”

“I reject that, and I reject that a handful of people in Palo Alto are going to determine what the lawful execution of policy is,” he added.

Last June, Google announced it would not renew a controversial contract with the Department of Defense after it expired in March. Under the contract, referred to as “Project Maven,” Google partnered with the Pentagon to help it analyze and interpret drone videos using artificial intelligence. The work sparked a firestorm inside Google, prompting dozens of employees to resign in protest.

At the same time, Google has sought to make inroads into China, through a number of AI, cloud computing and hardware projects. The company has repeatedly denied that it works with the Chinese military.

Those moves prompted Thiel to refer to Google’s work in China as “seemingly treasonous.” The comments caught the attention of President Donald Trump, who said his administration would look into Thiel’s claims.

Many experts have downplayed Thiel’s concerns, including Trump’s national economic advisor, Larry Kudlow, who said: “I meet with Google, I meet with Google’s CEO on a regular basis. I think they’re working for America, for our military, not for China.”

Karp has been a vocal critic of the very community his company is a part of in the past. He criticized Silicon Valley companies for refusing to work with the federal government, while “selling their products that are adversarial to America.”

Palantir, which is reportedly eyeing an IPO in 2020, was founded in 2004 by Karp, Thiel and other ex-Stanford students. The company develops defense and intelligence products, as well as corporate management software.


Company: cnbc, Activity: cnbc, Date: 2019-08-22  Authors: annie palmer
Keywords: news, cnbc, companies, ai, intelligence, thiel, trump, work, palantir, ceo, china, company, googles, karp, google, rule, shouldnt, thiels


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‘I am the Chosen One,’ Trump proclaims as he defends trade war with China

President Donald Trump on Wednesday declared himself “the Chosen One” as he defended his administration’s actions in the ongoing U.S.-China trade war. “This isn’t my trade war, this is a trade war that should have taken place a long time ago,” Trump told reporters outside the White House. Trump continued: “Somebody had to do it, so I’m taking on China. I’m taking on China on trade, and you know what? The Trump administration is gearing up to slap new tariffs on billions of dollars’ worth of Chin


President Donald Trump on Wednesday declared himself “the Chosen One” as he defended his administration’s actions in the ongoing U.S.-China trade war. “This isn’t my trade war, this is a trade war that should have taken place a long time ago,” Trump told reporters outside the White House. Trump continued: “Somebody had to do it, so I’m taking on China. I’m taking on China on trade, and you know what? The Trump administration is gearing up to slap new tariffs on billions of dollars’ worth of Chin
‘I am the Chosen One,’ Trump proclaims as he defends trade war with China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger
Keywords: news, cnbc, companies, defends, chosen, tariffs, chinese, imports, trump, proclaims, trade, china, president, taking, war, im, recently


'I am the Chosen One,' Trump proclaims as he defends trade war with China

President Donald Trump on Wednesday declared himself “the Chosen One” as he defended his administration’s actions in the ongoing U.S.-China trade war.

The president’s self-aggrandizing remark followed a string of criticisms aimed at his predecessors, whom he claimed had ignored China’s alleged malpractice on trade.

“This isn’t my trade war, this is a trade war that should have taken place a long time ago,” Trump told reporters outside the White House.

“Somebody had to do it,” the president said. He added, while looking to the heavens: “I am the Chosen One.”

Trump continued: “Somebody had to do it, so I’m taking on China. I’m taking on China on trade, and you know what? We’re winning.”

“I was put here by people,” the president said. “I was put here by people to do a great job. And that’s what I’m doing.”

Earlier Wednesday, Trump retweeted a right-wing pundit’s flattering, messiah-flavored comments about the president’s support in Israel.

“The Jewish people in Israel love him like he’s the King of Israel. They love him like he is the second coming of God,” said that supporter, Wayne Allyn Root.

The Trump administration is gearing up to slap new tariffs on billions of dollars’ worth of Chinese imports. Trump has already imposed 25% tariffs on roughly $250 billion in Chinese goods, and has vowed to apply 10% duties to about all remaining Chinese imports by mid-December.

Some of those tariffs will go into effect Sept. 1, while other were recently delayed until Dec. 15 to avoid harming U.S. consumers during the holiday season.

Beijing has retaliated by taxing about $110 billion in U.S. imports, and more recently by announcing that it would no longer buy U.S. agriculture products.

Trump spoke before traveling to Kentucky, where he was scheduled to speak at a convention for U.S. veterans.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger
Keywords: news, cnbc, companies, defends, chosen, tariffs, chinese, imports, trump, proclaims, trade, china, president, taking, war, im, recently


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