American farmers are facing grim prospects

American farmers are facing grim prospects as they head into the 2019 harvest season after China halted the purchases of US farm goods Monday. 1 tariffs. China was killing us with unfair trade deals," he said.The Association of China Rare Earth Industry issued a statement after a special working meeting on Monday to discuss the "guidance" given by Chinese President Xi Jinping during his visit to a rare earth plant in Jiangxi in May.Huawei rules expectedTensions could spike further after the release of an interim US rule for a ban on federal purchases of telecommunications equipment from five Chinese companies, including Huawei Technologies Co Ltd, the worlds largest telecommunications network gear maker.Washington: US President Donald Trump on Wednesday said his tough stance on Chinas economic and trade policies would ultimately benefit the https://www.reducerfactory.net/product/nmrv-worm-gear-reducers/ American economy, even as Beijing signalled it could strike back by curbing sales of chemicals known as rare earths that are used in everything from iPhones to military equipment."Fred Bergsten, a former senior US Treasury official, said bearish financial markets and weakening US economic indicators could prompt Trump to delay the Sept."The Federal Reserve and others have estimated the tariffs already in place will cost the average American household a USD 1,000 increase in prices," he said..The US-China trade war escalated sharply in recent days after Washington on Monday branded Beijing a currency manipulator for the first time since 1994, and said it would impose 10 per cent tariffs on the remaining USD 300 billion in Chinese imports, starting on September 1.The US government has urged its allies not to use Huawei equipment, which it says China could exploit for spying.Impact to US economyGary Locke, who served as US ambassador to China from 2011 to 2014, said it was in Washingtons own interest to dial back tensions and work toward some kind of modest deal with Beijing."Ultimately, its going to go much higher than it ever would have gone, because China was like an anchor on us. It has sued the US government over the restrictions in the defence law.Xis visit stoked fears China would use its dominance over production of rare earths, a group of 17 chemical elements prized for their use in consumer electronics and military equipment, in the escalating trade war, although no restrictions on supplies have so far been announced.The moves have jolted financial markets and fuelled concerns about a global recession. Washington has accused the company of espionage and stealing intellectual property."US Treasury yields slumped on Wednesday, with 30-year yields nearing record lows, on growing fears of a global downturn and bets the Federal Reserve would have to cut interest rates further to counter growing recession risks. "And increased prices will make US companies less competitive here and abroad. The response from allies has been mixed.White House officials say they still expect Chinese negotiators to come to Washington in September for talks, and that the latest tariffs could still be averted if the worlds two largest economies make progress on a trade agreement."The economy is a big part of his reelection strategy, so he has to hesitate before he does things that could weaken it," Bergsten, now a senior fellow at the Peterson Institute for International Economics, told Reuters.Jo-Ann Stores, an Ohio-based arts and craft retailer, said tariffs introduced in September 2018 were already cutting into profit margins and raising the risk of layoffs.But hopes for a deal are dimming and domestic pressure is growing for Trump to cut a deal with Beijing."If even he is acknowledging that its only ultimately that we gain, then I think theres a chance that hell dial it back."Its an enormous financial burden," said Wade Miquelon, CEO of Jo-Ann Stores, who previously served as chief financial officer of Walgreens. The American Farm Bureau Federation describes the Chinese decision as "a punch in the gut.Huawei has repeatedly denied it is controlled by the Chinese government, military or intelligence services."US businesses and consumers paid USD 6 billion in tariffs in June, a 74 per cent rise from the same period a year ago, a coalition of US trade groups said Wednesday, warning a new round of tariffs would exacerbate job losses and dent demand.Trump told reporters at the White House that the market reaction had been anticipated, but he remained confident in the strength of the US economy.Goldman Sachs on Tuesday said it no longer expects the United States and China to reach agreement before the November 2020 presidential election given the "harder line" being pursued by both sides.Trump had assured Xi that some of restrictions on Huawei would be relaxed, but US companies have complained that they have received few answers about the situation so far.The ban was part of a defence law passed last year and is part of a broad US push against Huawei, the worlds largest telecommunications network gear maker.But China still has some levers left to pull.Beijings next move?Financial markets have calmed somewhat amid signs that China would not allow the yuan to weaken much further after letting it slip below 7 per dollar for the first time in over a decade.The Chinese rare earths association on Wednesday said it would support countermeasures in the escalating trade dispute with the United States and accused Washington of using "trade bullying behaviour" to suppress Chinas development