Mnuchin Says U.S. Markets ‘Correction’ Is Not Very Surprising

Minnie Murray
October 13, 2018

When President Trump first hit China with 25 per cent tariffs on $50 billion of exports in June, Beijing retaliated with $50 billion of tariffs of its own.

Except, maybe not. September trade data released Friday showed the Chinese economy in surprisingly decent health-particularly set against this week's dismal Chinese markets action.

Customs data on Friday showed growth in Chinese imports of US goods decelerated to 9 percent over a year earlier.

"With global growth likely to cool further in the coming quarters and United States tariffs set to become more punishing, the recent resilience of exports is unlikely to be sustained". Evans said he wasn't aware of "anything happening in the last couple of weeks that alter my basic take that financial stability conditions are reasonably moderate, and that we're in reasonable shape at the moment".

The Chinese yuan has lost almost 10 per cent of its value against the dollar this year.

The IMF said that GDP could decline as much as peak 1.6 per cent in China and close to 1 per cent in the USA if the two countries further escalate the trade war and put all proposed and retaliatory tariffs in place.

USA nuclear exports to China amounted to $170 million in 2017, the officials said. Imports grew 14.3 percent, down from 20.9 percent.

The Chinese yuan has lost almost 10 percent of its value against the US dollar this year.

As the International Monetary Fund launches talks with Pakistan over a bailout package, Mnuchin said transparency was needed for Pakistan's debts to China and other creditors.

After imposing tariffs on $50 billion worth of Chinese goods over the summer, the Trump administration last month added a 10 percent tariffs to another $200 billion worth of Chinese products, encompassing everything from household items like furniture and toys to industrial equipment.

The politically-sensitive surplus was $34.13 billion in September, surpassing the record of $31.05 billion in August. China's central bank cut its daily reference rate for a ninth day to 6.9120. Imports of American goods increased 9 percent to $12.6 billion, down from August's 11.1 percent growth.

In a separate report, the Department of Labor said the prices of goods imported from China fell 0.1 percent in September, the third month in a row of falling prices. An official survey also confirmed a further manufacturing weakening.

With China's manufacturing sector cooling and export orders shrinking, Beijing has pledged to increase export tax rebates from November 1 for the second time this year and promised to cut corporate burden on a larger scale to help struggling Chinese firms. It also slashed China's growth forecast for next year to 6.2 percent from 6.4 percent. Otherwise, China's export performance as of September is steady, and a bit disappointing in the case of non-Japan Asia.

Beijing's exports have been robustly growing all year in the face of rising tariffs and increasing uncertainty over relations with Washington.

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