CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth

Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday. The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth. The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. “The nation’s fiscal outlook is challenging,


Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday. The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth. The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. “The nation’s fiscal outlook is challenging,
CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger ylan mui, kevin breuninger, ylan mui
Keywords: news, cnbc, companies, hikes, higher, growth, cbo, warns, federal, grow, report, deficit, expects, budget, outlook, expected, tariff, projected, economic, harm


CBO expects deficit to grow more than projected, warns that tariff hikes could harm growth

Federal deficits are expected to swell to higher levels over the next decade than previously expected, the nonpartisan Congressional Budget Office said in a new report Wednesday.

The CBO also said that President Donald Trump’s tariffs are projected to shrink gross domestic product by 2020, and warned that further tariff hikes could stifle economic growth.

The U.S. budget deficit is expected to hit $960 billion in 2019, and average a whopping $1.2 trillion per year between 2020 and 2029, according to the CBO’s look-ahead at the U.S.’ budget and economic outlook over the next decade.

The new deficit projection for 2019 rose $63 billion from the last report, which came out in May. The CBO says this is mainly because of the massive new budget deal, which passed both houses of Congress and was signed into law by Trump on Aug. 2.

“The nation’s fiscal outlook is challenging,” CBO director Phillip Swagel said in the report. “Federal debt, which is already high by historical standards, is on an unsustainable course.”

Swagel said that the debt is projected to rise even higher after 2029, due to the aging of the U.S. population, growth in health care spending and rising interest costs.

The White House did not immediately respond to CNBC’s request for comment on the new CBO report.


Company: cnbc, Activity: cnbc, Date: 2019-08-21  Authors: kevin breuninger ylan mui, kevin breuninger, ylan mui
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Here’s what new tariffs will cost the average American household

The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan. The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. This third tranche of duties affect consumer goods more than the previous levies did. Retailers’ stocks have suffered this month as the list of new tariff goods impact apparel, footwear, consumer electronics and toys. Despite the la


The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan. The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. This third tranche of duties affect consumer goods more than the previous levies did. Retailers’ stocks have suffered this month as the list of new tariff goods impact apparel, footwear, consumer electronics and toys. Despite the la
Here’s what new tariffs will cost the average American household Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, chinese, way, tariff, larger, tariffs, month, goods, impact, estimates, heres, consumer, household, average, cost, american


Here's what new tariffs will cost the average American household

The average American household will be down $1,000 per year thanks to the newest round of tariffs on Chinese goods, according to J.P. Morgan.

The firm estimates the average annual tariff cost per household will increase from $600 from the first two rounds of tariffs. The new tariffs are scheduled to begin Sept. 1 and in mid-December.

“What distinguishes China Phase III tariffs from preceding tariffs is the impact to Consumption and Capital goods whereas previous tariffs focused more on Intermediate goods,” J.P. Morgan head of U.S. equity strategy Dubravko Lakos-Bujas said in a note to clients. “This suggests that the expected consumer impact should be larger in the latest round.”

President Donald Trump surprised investors earlier this month by ending a tariff ceasefire with China and announcing new tariffs of 10% on the remaining $300 billion in Chinese imports, starting next month. He later delayed some of the tariffs until Dec. 15. This third tranche of duties affect consumer goods more than the previous levies did.

Lakos-Bujas said unlike the agriculture sector, which is receiving subsidies from the government to offset some of the tariffs, “there is no simple way to compensate consumer.”

Retailers’ stocks have suffered this month as the list of new tariff goods impact apparel, footwear, consumer electronics and toys. In announcing his delay or cancellation of some of the tariffs, Trump said he wanted to avoid hurting the Christmas shopping season.

Despite the larger tariff impact, the U.S. consumer appears strong. July retail sales grew more than expected from June and posted the strongest five-month growth streak since 2005-2006. About 70% of economic activity is tied to consumer spending.

Given the larger impact on the wallet of the U.S. consumer going in the 2020 election, Lakos-Bujas said the administration will likely rollback tariffs or compromise on a trade agreement.

“We believe there is a good chance they end up reversing their decision and finding a way to reach some common ground with Chinese negotiators,” he said.

The firm estimates that Trump’s new tariffs will cost Americans the majority of the tax break they are getting from Trump’s 2017 tax overhaul, which it estimates is around $1,300 per year.

— with reporting from CNBC’s Michael Bloom


Company: cnbc, Activity: cnbc, Date: 2019-08-19  Authors: maggie fitzgerald
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Asia Pacific stocks edge up as US announces some tariff delays

Stocks in Asia Pacific edged up on Wednesday as the U.S. announced a delay in the implementation of tariffs on some Chinese goods. Meanwhile, the Hang Seng index in Hong Kong was fractionally lower, as of its final hour of trading. Tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of protests. “We are advising client(s) to cut their exposure towards Hong Kong equity markets and move towards more South Asia markets like Indonesia,


Stocks in Asia Pacific edged up on Wednesday as the U.S. announced a delay in the implementation of tariffs on some Chinese goods. Meanwhile, the Hang Seng index in Hong Kong was fractionally lower, as of its final hour of trading. Tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of protests. “We are advising client(s) to cut their exposure towards Hong Kong equity markets and move towards more South Asia markets like Indonesia,
Asia Pacific stocks edge up as US announces some tariff delays Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: eustance huang
Keywords: news, cnbc, companies, rose, day, index, markets, pacific, way, trading, asia, edge, tariff, kong, delays, tariffs, hong, stocks, announces


Asia Pacific stocks edge up as US announces some tariff delays

Stocks in Asia Pacific edged up on Wednesday as the U.S. announced a delay in the implementation of tariffs on some Chinese goods.

Shares in mainland China rose on the day, with the Shanghai composite gaining 0.42% to 2,808.91 and the Shenzhen component adding 0.72% to 8,966.47. The Shenzhen composite also advanced 0.692% to 1,509.00.

The United States Trade Representative announced Tuesday certain products are being removed from the tariff list and will not face additional tariffs of 10%. Other tariffs will be delayed to Dec. 15 for certain goods, it said.

“A cynical view then is that the delay is purely for political timing rather than a more substantive change in the US’ approach to the US-China relationship,” Tapas Strickland, an economist at National Australia Bank, wrote in a note.

“Overall a high degree of (skepticism) should remain and an imminent deal is unlikely given Trump has foreshadowed he is going to be campaigning hard on the issue in the 2020 election,” Strickland said.

Meanwhile, the Hang Seng index in Hong Kong was fractionally lower, as of its final hour of trading. Tensions in Hong Kong remained high after the city’s airport saw disruptions for a second day on Tuesday as a result of protests.

“In the near term, Hong Kong police might take tougher action and China might be looking to resolve this issue one way or the other way, which is going to be negative for the markets,” Suresh Tantia, senior investment strategist at the Credit Suisse APAC CIO office, told CNBC’s “Street Signs” on Wednesday.

“We are advising client(s) to cut their exposure towards Hong Kong equity markets and move towards more South Asia markets like Indonesia,” Tantia said.

Elsewhere, Japan’s Nikkei 225 rose 0.98% to close at 20,655.13, while the Topix index also advanced 0.87% to end its trading day at 1,499.50.

Over in South Korea, the Kospi gained 0.65% to close at 1,938.37, Australia’s S&P/ASX 200 also rose 0.42% on the day to 6,595.90.

Overall, the MSCI Asia ex-Japan index added 0.62%.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: eustance huang
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Trump just blinked, giving China a possible edge in trade war, Jim Chanos and others say

In backing off on China tariffs Tuesday, President Donald Trump showed just how much pain the U.S. could tolerate — and China may use that to its advantage, key voices on Wall Street say. John Rutledge, chief investment officer of global principal investment house Safanad, said the trade war is causing pain on both sides. In China, Rutledge said Xi is feeling pressure to show strength in the trade war, while Washington is grappling with mounting political pressure and costs to consumers. The pre


In backing off on China tariffs Tuesday, President Donald Trump showed just how much pain the U.S. could tolerate — and China may use that to its advantage, key voices on Wall Street say. John Rutledge, chief investment officer of global principal investment house Safanad, said the trade war is causing pain on both sides. In China, Rutledge said Xi is feeling pressure to show strength in the trade war, while Washington is grappling with mounting political pressure and costs to consumers. The pre
Trump just blinked, giving China a possible edge in trade war, Jim Chanos and others say Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: kate rooney
Keywords: news, cnbc, companies, trade, tariff, possible, china, xi, giving, say, rutledge, edge, white, chanos, market, war, trump, jim, tariffs


Trump just blinked, giving China a possible edge in trade war, Jim Chanos and others say

In backing off on China tariffs Tuesday, President Donald Trump showed just how much pain the U.S. could tolerate — and China may use that to its advantage, key voices on Wall Street say.

Markets rallied on the announcement by the U.S. Trade Representative office that certain items were being removed from the new tariff list, while duties on others would be delayed until mid-December.

The short-seller Jim Chanos, who tweets under the alter ego “Diogenes,” hinted that Chinese President Xi Jinping may take this as a sign that the U.S. may cave with enough pressure.

“So then tell me why Xi should not continue to wait out The World’s Greatest Negotiator, who keeps ‘dealing’ with himself?” tweeted Chanos, founder and managing Partner of Kynikos Associates.

Some investors took Tuesday’s announcement as a sign that despite the White House’s claim that China would bear the brunt of tariff impacts, the trade war was indeed hurting consumers. The products in the group exempt from tariffs include cellphones, some apparel, and video games — all of which are crucial to the U.S. consumer market, especially during the holiday shopping season. Trump announced on Aug. 1 that 10% tariffs would go into effect on Sept. 1 on the remaining $300 billion worth of Chinese imports that had not been slapped with U.S. duties.

Trump told reporters Tuesday afternoon that he postponed tariffs for the Christmas season “in case it had an impact on shopping” and the delay would “help a lot of people.”

Hedge fund manager and Hayman Capital Management founder Kyle Bass said based on the tariff de-escalation, “it does look like President Trump has blinked.” While Trump has been vocal in the tariff fight, Bass said “every time it makes the stock market go down a few hundred points” the president “backs away.”

“It looks like he doesn’t want the price of iPhones going up into Christmas,” Bass said on CNBC’s “Squawk Alley ” Tuesday. “The Chinese are going to read this as a key weakness.”

China meanwhile, has not publicly backed off. It announced last week that it would not resume buying U.S. agricultural products, despite assurances otherwise by Xi to Trump at the June G-20 summit. It also has retaliated with its own tariffs on U.S. goods and set off more worries about the trade war on Friday by letting its currency weaken.

John Rutledge, chief investment officer of global principal investment house Safanad, said the trade war is causing pain on both sides. In China, Rutledge said Xi is feeling pressure to show strength in the trade war, while Washington is grappling with mounting political pressure and costs to consumers.

But that can change quickly, Rutledge said, depending on which of Trump’s trade advisors have his ear at the moment.

“There’s a battle of the bands among advisors — this may be just a tick up as the rational group prevailed,” Rutledge said, referring to White House economic advisor Larry Kudlow, Secretary of Commerce Wilbur Ross and Treasury Secretary Steven Mnuchin, whom he calls “market thinkers” in opposition to trade hawk and advisor Peter Navarro.

Still, Rutledge said its nearly impossible to predict the White House’s next move and investors should take this as “one day and one data point.”

“We shouldn’t extrapolate or draw a trend, since it might get revered,” Rutledge said.

The president’s top priorities — a strong stock market and a tough China trade deal — have been at odds. Uncertainty around the trade war has weighed on financial markets. Stocks saw their worst day of the year on Aug. 5 after China let its currency weaken below 7 yuan to the dollar and made its announcement about U.S. farm products.

“The White House is now delaying the tariffs and removing some items. Did some acronym called the SPX cause someone to blink?,” David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates, said in a tweet.

China’s Commerce Ministry said Vice Premier Liu He had a phone call with U.S. Trade Representative Robert Lightizer and Mnuchin. Trade talks are set to continue in two weeks. According to Chinese news outlet CGTN, the call for the world’s two largest economies to meet again on trade came from Lighthizer, not China.

So far, the pain felt by the stock market has not been that exaggerated. At its low point for this sell-off, the S&P 500 was down only a little more than 6% from its high.

“These developments are modestly positive, especially compared to the recent torrent of negative news, but we caution against viewing the tariff delay as anything more than an attempt to partially shield the American consumer heading into the holiday season,” Isaac Boltansky of Compass Point Research wrote in a note to clients. “We continue to believe that a broad deal will not emerge prior to the 2020 election.”

Trump, himself, accused China last week of trying to wait out the 2020 election for a trade deal.


Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: kate rooney
Keywords: news, cnbc, companies, trade, tariff, possible, china, xi, giving, say, rutledge, edge, white, chanos, market, war, trump, jim, tariffs


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US delays China tariffs for some items including cellphones, removing other products from list

The United States Trade Representative office said Tuesday that new tariffs on certain consumer items would be delayed until Dec. 15, while other products were being removed from the new China tariff list altogether. The USTR said the delay affects electronics including cellphones, laptops and video game consoles and some clothing products and shoes and “certain toys.” Other items on the list of delayed items include food and kitchen items, numerous chemicals, fireworks, baby products and sports


The United States Trade Representative office said Tuesday that new tariffs on certain consumer items would be delayed until Dec. 15, while other products were being removed from the new China tariff list altogether. The USTR said the delay affects electronics including cellphones, laptops and video game consoles and some clothing products and shoes and “certain toys.” Other items on the list of delayed items include food and kitchen items, numerous chemicals, fireworks, baby products and sports
US delays China tariffs for some items including cellphones, removing other products from list Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, list, items, tariff, china, trade, ustr, delayed, including, delays, additional, cellphones, products, removing, certain, tariffs


US delays China tariffs for some items including cellphones, removing other products from list

The United States Trade Representative office said Tuesday that new tariffs on certain consumer items would be delayed until Dec. 15, while other products were being removed from the new China tariff list altogether. It cited health and security factors.

The duties had been set to go into effect on Sept. 1, so the announcement eased concerns about the holiday shopping season.

The USTR said the delay affects electronics including cellphones, laptops and video game consoles and some clothing products and shoes and “certain toys.”

Earlier this month, President Donald Trump announced a new round of 10% tariffs on $300 billion worth of Chinese imports that eluded duties.

Markets rallied on the news. The Dow Jones Industrial Average rose 400 points, while the S&P 500 was 1.5% higher and the Nasdaq rose 1.9%.

Delays on centerpiece technology products boosted tech stocks and distributors of technology items. Apple shares traded nearly 5% higher on the news and Best Buy soared more than 8%. Chipstocks also moved out of correction territory with the Semiconductor ETF down 8% from its July high.

The delay in footwear and apparel tariffs lifted retailers, including Nike, Kohl’s, and Nordstrom. The retail ETF the XRT rose over 4%, on pace for its best day since December. Toy products being delayed caused Hasbro and Mattel to jump more than 4%.

Other items on the list of delayed items include food and kitchen items, numerous chemicals, fireworks, baby products and sports equipment.

The USTR did not specify which items will be removed from the list but said it will conduct an “exclusion process for products subject to additional tariff.”

Trump said Tuesday his decision to delay tariffs ahead of the Christmas season was to avoid an impact on holiday shopping. Additionally he said all of the delays “help a lot of people.”

Separately, China’s Commerce Ministry said Vice Premier Liu He had spoken by phone with U.S. Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin and they agreed to talk again in two weeks.

The next round of trade talks had been expected to take place in September, after the tariffs went into place.

Uncertainty around the trade war has weighed on the markets. U.S. stocks had their worst day of the year on Aug. 5, when China let its currency weaken, crossing the 7 yuan-per-dollar threshold and said it would halt imports of agricultural goods from the U.S.

Here’s the full statement from the USTR:

USTR Announces Next Steps on Proposed 10 Percent Tariff on Imports from China Washington, DC – The United States Trade Representative (USTR) today announced the next steps in the process of imposing an additional tariff of 10 percent on approximately $300 billion of Chinese imports. On May 17, 2019, USTR published a list of products imported from China that would be potentially subject to an additional 10 percent tariff. This new tariff will go into effect on September 1 as announced by President Trump on August 1. Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent. Further, as part of USTR’s public comment and hearing process, it was determined that the tariff should be delayed to December 15 for certain articles. Products in this group include, for example, cell phones, laptop computers, video game consoles, certain toys, computer monitors, and certain items of footwear and clothing. USTR intends to conduct an exclusion process for products subject to the additional tariff. The USTR will publish on its website today, and in the Federal Register as soon as possible, additional details and lists of the tariff lines affected by this announcement.

Correction: An earlier version misstated how cellphones would be affected by the USTR announcement. The office says tariffs on cellphones are being delayed.


Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: maggie fitzgerald
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Apple rises 4% after Trump administration delays China tariffs on electronics until December

Shares of Apple spiked closed up 4% on Tuesday after the Trump administration said it will delay tariffs on electronics and other consumer products made in China until mid December. Apple is expected to release its new version of the iPhone in September, shortly after the tariffs were to go into effect. If Apple shares end the day up more than 4.91%, it would be the best day for the stock since May 1. Apple warned in June that the tariffs would affect all of its major products produced in China,


Shares of Apple spiked closed up 4% on Tuesday after the Trump administration said it will delay tariffs on electronics and other consumer products made in China until mid December. Apple is expected to release its new version of the iPhone in September, shortly after the tariffs were to go into effect. If Apple shares end the day up more than 4.91%, it would be the best day for the stock since May 1. Apple warned in June that the tariffs would affect all of its major products produced in China,
Apple rises 4% after Trump administration delays China tariffs on electronics until December Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: todd haselton
Keywords: news, cnbc, companies, certain, electronics, rises, tariff, shares, products, china, delays, apple, tariffs, administration, trump, ustr, iphone


Apple rises 4% after Trump administration delays China tariffs on electronics until December

Apple CEO Tim Cook (L) takes a picture with David Casarez (R) who just purchased the new iPhone X at an Apple Store on November 3, 2017 in Palo Alto, California.

Shares of Apple spiked closed up 4% on Tuesday after the Trump administration said it will delay tariffs on electronics and other consumer products made in China until mid December.

The United States Trade Representative (USTR) said “certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.” It added that the remaining tariffs on “cell phones, laptop computers, video game consoles, certain toys, computer monitors and certain items of footwear and clothing,” will be delayed until Dec. 15.

The duties had been set to go into effect on Sept. 1, so the announcement eased concerns about the Christmas shopping season. Apple is expected to release its new version of the iPhone in September, shortly after the tariffs were to go into effect. The company has not said whether or not it would increase the price of the iPhone or absorb the costs.

If Apple shares end the day up more than 4.91%, it would be the best day for the stock since May 1. Shares of Apple suppliers such as Corning, Lumentum and Qualcomm were also up following the USTR announcement.

Apple shares fell 2% on Aug. 1 after President Donald Trump announced that effective next month, the U.S. was adding a 10 percent tariff on the remaining $300 billion in Chinese goods that had not faced duties.

Apple warned in June that the tariffs would affect all of its major products produced in China, including iPhone, iMac and iPads. Trump said in July that Apple would not be given tariff waivers or relief for Mac Pro parts made in China. “Make them in USA, no Tariffs!” Trump said.

Apple did not respond to a request for comment.

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Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: todd haselton
Keywords: news, cnbc, companies, certain, electronics, rises, tariff, shares, products, china, delays, apple, tariffs, administration, trump, ustr, iphone


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Cramer: China tariff tweaks signal that Trump does not want the stock market to drop any further

CNBC’s Jim Cramer said Tuesday that the Trump administration’s decision to remove some items from its new China tariffs list signals the president wants to halt the stock market’s decline. After declines on Friday and Monday, the Dow had been down more than 5% from July’s all-time highs before Tuesday’s trading. “This is exactly what the bears’ worst nightmare is,” Cramer said on “Squawk on the Street.” Stock market naysayers will still point to the threat of the 2-year Treasury yield inverting


CNBC’s Jim Cramer said Tuesday that the Trump administration’s decision to remove some items from its new China tariffs list signals the president wants to halt the stock market’s decline. After declines on Friday and Monday, the Dow had been down more than 5% from July’s all-time highs before Tuesday’s trading. “This is exactly what the bears’ worst nightmare is,” Cramer said on “Squawk on the Street.” Stock market naysayers will still point to the threat of the 2-year Treasury yield inverting
Cramer: China tariff tweaks signal that Trump does not want the stock market to drop any further Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: matthew j belvedere
Keywords: news, cnbc, companies, tweaks, market, drop, does, cramer, yield, signal, treasury, tariffs, tariff, items, china, spread, president, trade, trump, stock


Cramer: China tariff tweaks signal that Trump does not want the stock market to drop any further

CNBC’s Jim Cramer said Tuesday that the Trump administration’s decision to remove some items from its new China tariffs list signals the president wants to halt the stock market’s decline.

“I think this is the president saying, ‘I don’t want the stock market to go down any more,'” Cramer said as the Dow Jones Industrial Average rocketed from a down opening to a more than 400 point, nearly 2%, gain. After declines on Friday and Monday, the Dow had been down more than 5% from July’s all-time highs before Tuesday’s trading.

Shortly after the open on Wall Street, U.S. trade officials announced the removal of certain items, including smartphones, from President Donald Trump’s upcoming 10% tariffs on the $300 billion of Chinese imports not already taxed.

Apple shares surged about 5% on news of the reprieve.

The U.S. trade representative’s office also said that other items subject to the additional tariffs — set to go into effect on Sept. 1 — would be delayed until mid-December.

At the same time, Chinese officials said Tuesday that they held a call with U.S. Trade Representative Robert Lightizer and Treasury Secretary Steven Mnuchin. China said it agreed to another call in two weeks.

“Everybody blinked,” said Cramer, in characterizing the announcements from the U.S. and China, which have been locked in a yearlong trade war over what the White House sees as unfair business practices.

“This is exactly what the bears’ worst nightmare is,” Cramer said on “Squawk on the Street.”

Stock market naysayers will still point to the threat of the 2-year Treasury yield inverting and going higher than the 10-year yield, the “Mad Money” host said.

Historically, such a move has signaled a recession. Other parts of the yield curve, the plot of U.S. interest rates based on maturity dates, inverted months ago.

However, the spread between the 2-year and the 10-year widened Tuesday, as investors bought up stocks and sold bonds whose price values move inversely to their yields. Later the spread narrowed again.


Company: cnbc, Activity: cnbc, Date: 2019-08-13  Authors: matthew j belvedere
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GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s


Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief. President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods. “We have to help American companies … and get more American jobs and stop helping China,” Scott said. “I’m not s
GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, tax, tariffs, american, sen, gop, scott, paid, trump, sure, tariff, stop, billion, return, trade, goods, rick, cuts


GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods

Republican Sen. Rick Scott told CNBC on Monday the U.S. government should return money collected from China tariffs to Americans as tax relief.

“Anything we raise in tariffs, we should give back to the rank and public in tax reductions,” the Florida senator said in a “Squawk Box ” interview, acknowledging there’s been some “short-term pain.”

“We have to help American farmers open up more markets around the world,” said Scott, who did not elaborate on what such relief might look like.

Data from U.S. Customs and Border Protection, which collects taxes on imports, showed the U.S. had assessed $23.7 billion in tariffs from early 2018 through May 1. According to a Reuters report, total tariff revenue rose 73% in the first half of 2019 from a year earlier.

The trade dispute between the world’s two largest economies has been escalating in recent months, with investors fearing that it could slow global and U.S. economic growth. In fact, Goldman Sachs lowered its fourth-quarter U.S. growth forecast by 0.2% to 1.8%, with the cumulative drag on gross domestic product of 0.6%.

President Donald Trump, earlier this month announced an impeding 10% tariff on the remaining $300 billion of Chinese goods that had not been previously taxed. Back In May, Trump hiked tariffs to 25% from 10% on $200 billion in Chinese goods.

“We have to help American companies … and get more American jobs and stop helping China,” Scott said. “Stop acting like they are a partner,” adding he doesn’t see how a trade deal can be reached.

“I’m not sure what else we can do, other than stand up for American interests and American values,” he wondered. “I’m not sure what the president can do otherwise than the tariffs he is doing.”


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: jessica bursztynsky
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Wall Street analysts worry these stocks are caught in the deepening US-China trade war

Wall Street analysts are scrambling to asses the damage in the latest fallout in the trade war between the U.S. and China. CNBC did a deep dive through the most recent Wall Street research to see what stocks analysts fear will be most hurt by the latest tariff. They include names such as Dollar Tree, Abercrombie & Fitch, Rio Tinto, O’Reilly Automotive, Michaels Companies, Advanced Micro Devices, & Nvidia. This week, Dollar Tree was the subject of a downgrade by Deutsche Bank analysts. Here’s wha


Wall Street analysts are scrambling to asses the damage in the latest fallout in the trade war between the U.S. and China. CNBC did a deep dive through the most recent Wall Street research to see what stocks analysts fear will be most hurt by the latest tariff. They include names such as Dollar Tree, Abercrombie & Fitch, Rio Tinto, O’Reilly Automotive, Michaels Companies, Advanced Micro Devices, & Nvidia. This week, Dollar Tree was the subject of a downgrade by Deutsche Bank analysts. Here’s wha
Wall Street analysts worry these stocks are caught in the deepening US-China trade war Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael bloom
Keywords: news, cnbc, companies, deepening, worry, trade, retailer, war, tree, wall, tariff, caught, stocks, analysts, uschina, street, weeks, start, dollar, times


Wall Street analysts worry these stocks are caught in the deepening US-China trade war

Wall Street analysts are scrambling to asses the damage in the latest fallout in the trade war between the U.S. and China.

President Donald Trump recently announced that a new 10% tariff would go into effect on $300 billion worth of Chinese goods beginning September 1.

The S&P 500 is down around 2% since then and analysts fear the ratcheting up of trade tensions along with the new tariff will lead to trouble for a wide range of stocks they cover.

CNBC did a deep dive through the most recent Wall Street research to see what stocks analysts fear will be most hurt by the latest tariff. They include names such as Dollar Tree, Abercrombie & Fitch, Rio Tinto, O’Reilly Automotive, Michaels Companies, Advanced Micro Devices, & Nvidia.

Retail is widely believed to be one of the sectors most impacted because the latest round of tariffs target clothing and other consumer goods according to many analysts.

This week, Dollar Tree was the subject of a downgrade by Deutsche Bank analysts. The firm said that while it liked the discount retailer, it couldn’t ignore the looming tariff threat.

“We still view [Dollar Tree] as a high quality retailer with a well regarded management team … However, we can’t ignore choppy execution at Family Dollar, and our refreshed tariff math … shows material downside risk to estimates, with [Dollar Tree] among the most vulnerable companies in our coverage,” they said.

The new tariff couldn’t come at a worse time for multinational semiconductor companies like Advanced Micro Devices & Nvidia.

“Supplier shipment times already in the critical window,” Mizuho analysts said.

“The sudden announcement does not leave much time for suppliers to build inventories or pull-in as shipment times are 2-4 weeks and the tariff start is 4 weeks away. … We believe normal sea shipping times are 2 weeks from China to the West coast to 4 weeks to the East coast NY ports,” the analysts said.

“Unless the U.S administration gives a waiver to shipments already enroute before the Sep-1st start date or where orders have been placed, theoretically we could see tariff impact on many of the shipments start sooner.”

Recently, analysts at Credit Suisse attended an investor day for auto parts retailer O’Reilly Automotive. While the brokerage said it came away impressed from the meetings, it admitted it still couldn’t recommend the stock.

“The near to medium term story includes a challenging recipe of using price increases to offset tariffs and SG&A cost pressures, but with added uncertainty now on elasticity and how the consumer will respond to the next rounds of price increases. That, combined with consensus 2020 estimates that embed improving operating margins, and the stock’s premium valuation, keeps us on the sidelines,” they said in their note to clients.

Here’s what else analysts are saying about stocks caught in the U.S.-China trade war:


Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael bloom
Keywords: news, cnbc, companies, deepening, worry, trade, retailer, war, tree, wall, tariff, caught, stocks, analysts, uschina, street, weeks, start, dollar, times


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4 purchases that may be more expensive this holiday season because of new tariffs

Tariffs are taxes placed on imported products. Companies importing affected products pay the tariff and, in turn, must often charge higher prices for the products to cover the higher importing costs. Here are four specific product categories where experts warn you could see higher prices this fall, especially as new tariffs kick in:Toys. The Trade Partnership Worldwide report estimates that, due to existing tariffs, consumers will already spend $4.4 billion more on clothing and shoes. If additio


Tariffs are taxes placed on imported products. Companies importing affected products pay the tariff and, in turn, must often charge higher prices for the products to cover the higher importing costs. Here are four specific product categories where experts warn you could see higher prices this fall, especially as new tariffs kick in:Toys. The Trade Partnership Worldwide report estimates that, due to existing tariffs, consumers will already spend $4.4 billion more on clothing and shoes. If additio
4 purchases that may be more expensive this holiday season because of new tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: sam becker, aditi shrikant
Keywords: news, cnbc, companies, tariff, products, billion, product, told, trade, expensive, purchases, paying, prices, tariffs, holiday, higher, season


4 purchases that may be more expensive this holiday season because of new tariffs

Ongoing trade disputes between the United States and China, and the resulting tariffs, may mean that you’re paying more in the second half of 2019 for everything from school supplies to gifts for the winter holidays.

Tariffs are taxes placed on imported products. Companies importing affected products pay the tariff and, in turn, must often charge higher prices for the products to cover the higher importing costs. “At the end of the day, the tariffs are eaten by…the American consuming public,” Richard Ebeling, an economics professor at The Citadel in Charleston, South Carolina, told Grow earlier this year, when the U.S. raised existing tariffs from 10% to 25% on $200 billion worth of Chinese goods.

Last week, the Trump administration announced a new 10% tariff on $300 billion in Chinese goods that would kick in on September 1.

Here are four specific product categories where experts warn you could see higher prices this fall, especially as new tariffs kick in:

Toys. The impact here could be substantial, depending on what your kids put on their wish lists. One research analyst told CNBC that prices may only need to go up around 5% to offset increased costs but another toy executive told the Washington Post that consumers could end up paying as much as 40% more.

Electronics. Cellphones, tablets, laptops, and video game consoles could see price hikes of 20% or more, according to the Consumer Technology Association.

Apparel. The Trade Partnership Worldwide report estimates that, due to existing tariffs, consumers will already spend $4.4 billion more on clothing and shoes. Earlier this year, in reference to the 25% tariff, the Halloween & Costume Association warned that its members, mostly small businesses, “simply cannot absorb this kind of increase in product cost” without passing it on to shoppers. If additional tariffs are levied, those could result in even higher prices.


Company: cnbc, Activity: cnbc, Date: 2019-08-07  Authors: sam becker, aditi shrikant
Keywords: news, cnbc, companies, tariff, products, billion, product, told, trade, expensive, purchases, paying, prices, tariffs, holiday, higher, season


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