EU launches attack on Donald Trump and Boris Johnson as they land for G7 summit
“Mr No Deal” Boris Johnson has arrived for his first international summit and is prepared to face off with critics over a disorderly Brexit.
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British Prime Minister Boris Johnson and European Council head Donald Tusk have sparred over who would be to blame should Britain leave the EU on October 31 without a divorce deal in place.
Mr Tusk told reporters in Biarritz he would be willing to hear ideas from Mr Johnson on how to avoid a no-deal Brexit when the two men meet on Sunday on the sidelines of a G7 summit in the French seaside resort.
But he added he would not work with Britain on an exit from the EU without a withdrawal agreement.
“I still hope that PM Johnson will not like to go down in history as Mr No Deal,” said Mr Tusk, who leads the political direction of the 28-nation European Union.
Mr Johnson later retorted, “If Donald Tusk doesn’t want to go down as Mr No Deal then I hope that point will be borne in mind by him too.”
Mr Johnson also took a jibe at US President Donald Trump, saying he was “very concerned” about the trade tensions between the US and China, saying their tit-for-tat tariff hikes were harmful for the global economy.
AMAZON FIRES CAUSE G7 HEAT
The G7 summit is the scene of angry exchanges between world leaders over the fires that are raging unchecked in the Amazon forest, which scientists, ecologists, and many leaders believe to be the “lungs” of the earth.
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French President Emmanuel Macron and Brazilian leader Jair Bolsonaro are at loggerheads over what is to be done about the looming ecological disaster.
“Our house is on fire,” Mr Macron tweeted. “Literally. The Amazon, the lung of our planet which produces 20 per cent of our oxygen, is burning.”
Mr Bolsonaro, who is a right wing populist leader, responded by accusing Mr Macron of interfering in his country’s affairs.
Mr Macron says he’s launching an appeal to all world powers to help Brazil and other South American countries fight the fires.
Prior to the summit, Mr Macron thrust the rainforest fires to the top of the agenda.
He touched on it again in a national address, which took place just as Donald Trump touched down in Biarritz.
Mr Macron also called for an end to the trade wars he said are “taking hold everywhere.” Just before Mr Trump left the United States, he again threatened tariffs on French wines in retaliation for a French measure taxing technology companies.
EU Council President Donald Tusk has warned that US President Donald Trump’s escalating trade skirmishes with China and Europe could force economies around the world into recession.
“Trade wars will lead to recession, while trade deals will boost the economy,” Mr Tusk said as leaders of the Group of Seven (G7) countries descended on the French resort town of Biarritz for a three-day summit.
He said this year’s Group of Seven summit will be an “unusually difficult” meeting of the leaders of some of the world’s most powerful democracies.
Mr Tusk also said he could not agree with Mr Trump’s proposal to bring Russia back into the G7 under any condition.
Mr Tusk also said G7 leaders should find a way to discuss Iran and any trade wars between members would lead to a weakened trust.
Mr Tusk added Saturday that the bloc would retaliate against the United States if it imposed tariffs on French wine as US President Donald Trump is threatening to do.
Just before leaving Washington for the G7 summit, Trump issued a fresh threat to tax French wines in retaliation for Paris imposing a sales tax on US tech giants like Google, Facebook and Apple.
“I will protect French wine with genuine determination,” Mr Tusk said.
“If the US imposes tariffs, the European Union will respond in kind.”
“The last thing we need is a confrontation with our best ally, the United States,” he added. “This is not our initiative, this trade and tariff struggle, but we have to be ready and we are ready.”
Ahead of the summit, French winegrowers were on tenterhooks to see whether Mr Trump would follow through with his repeated threats to impose retaliatory tariffs after he vowed to take “substantial reciprocal action”.
Hundreds of protesters are marching as Group of Seven leaders arrive in the French resort town of Biarritz.
Protesters crossed into Spain from the French border village town of Hendaye. As the march began, they held cardboard signs aloft with pictures of Earth, protesting against climate policies they blame on the world’s G7 countries.
TRUMP’S TRADE WAR LAUNCHED
Trump launched a tirade on Twitter declaring that China has “been taking advantage of the United States”.
The US President ordered that he would increase taxes on products from China to 30 per cent from October 1.
Mr Trump’s tweet storm came as Wall Street tumbled after the US-China trade war escalated in dramatic fashion, with Trump demanding American companies seek alternatives to doing business with China after Beijing announced its own slate of retaliatory measures.
All three major US stock indexes ended the session sharply lower, posting their fourth consecutive weekly declines.
For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight....
— Donald J. Trump (@realDonaldTrump) August 23, 2019
....Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer. As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very....
— Donald J. Trump (@realDonaldTrump) August 23, 2019
Mr Trump said products coming from China that were slated to be hit with a 10 per cent tariff on September 1 will now face a 15 per cent tariff. He announced that goods and products currently being taxed at 25 per cent will be taxed at 30 per cent from October.
Trump’s comments come after China said it would pursue new tariffs of 5 per cent and 10 per cent on $US75 billion of American products.
The tariffs would take place in two steps, just as the US said it would do earlier this month in imposing 10 per cent tariffs on $US300 billion of Chinese goods.
The rising tensions between the world’s two biggest economies unnerved investors already on edge.
The latest exchanges in the long-running tariff row triggered a broadbased sell-off that hit shares of companies with high exposure to China the hardest, such as chipmakers and other top technology names.
Dow Jones Industrials components Intel and Apple dropped 3.9 per cent and 4.6 per cent respectively.
The developments overshadowed a highly anticipated speech from US Federal Reserve Chair Jerome Powell, in which he reiterated a pledge the central bank would “act as appropriate” to support the economy.
...unfair Trading Relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!). Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%...
— Donald J. Trump (@realDonaldTrump) August 23, 2019
...Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!
— Donald J. Trump (@realDonaldTrump) August 23, 2019
Powell stopped short of committing to the series of rapid-fire rate cuts Trump has been demanding.
At a press conference, Trump said that he would not stand in the way of beleaguered Federal Reserve chief Powell if he decided to quit.
Asked if he wanted Powell to resign, Trump told reporters: “If he did, I wouldn’t stop him.” Trump suggested earlier Friday that he regarded Powell as a bigger “enemy” than China, with whom he has been waging a trade war.
TRUMP: ‘WE DON’T NEED CHINA’
The dramatic fallout on Wall Street came as Trump “ordered” American companies to find alternatives to doing business in China.
The Dow Jones Industrial Average plummeted more than 700 points, or about 2.7 per cent, directly after Trump launched into a Twitter tirade lambasting China for intellectual property theft and fentanyl shipments to the US, the New York Post reports.
The Dow Jones ended trading down 622 points, or 2.4 per cent.
Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far....
— Donald J. Trump (@realDonaldTrump) August 23, 2019
“We don’t need China and, frankly, would be far … better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP.” Trump said in a series of earlier tweets.
“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 said.
Both the S&P 500 and Nasdaq joined in the bloodbath, closing down 2.5 per cent and 3 per cent respectively.
Mr Trump also directed Fed-Ex, Amazon, UPS and the US Post Office to “search for & refuse” fentanyl shipments from China and other countries.
Shares of Amazon dropped 1.9 per cent while FedEx and UPS shares were off 2.6 per cent and 2.4 per cent, respectively, as of 11:35am.
Apple, which makes many of its products in China, dropped 3.8 per cent to $US204.2 ($A302) a share.
Mr Trump’s remarks came following China announcing that it plans to impose $US75 billion ($A111.1 billion) of tariffs on US goods, including agricultural products and small aircraft as well as resume tariffs on US autos. The tariffs are set to go into effect in two stages on September 1 and December 15, mimicking the schedule the US plans for instituting tariffs on Chinese goods.
CHINA HITS BACK IN US TARIFFS WAR
China announced tariff hikes on $US75 billion ($A111.1 billion) of US products in retaliation for Mr Trump’s latest planned increase, deepening a conflict over trade and technology that threatens to tip a weakening global economy into recession.
China also will increase import duties on US-made autos and auto parts, the Finance Ministry announced.
Tariffs of 10 per cent and 5 per cent will take effect on two batches of goods on September 1 and December 15, the ministry said in a statement.
It gave no details of what goods would be affected but the timing matches Mr Trump’s planned duty hikes.
Washington is pressing Beijing to narrow its trade surplus and roll back plans for government-led creation of global competitors in robotics, electric cars and other technology industries.
The spiralling conflict has battered exporters on both sides and fuelled concern it might drag down weakening global economic growth.
China’s government appealed to Mr Trump this week to compromise in order to reach a settlement.
That came after Mr Trump warned that the American public might need to endure economic pain in order to achieve long-term results.
The United States, Europe, Japan and other trading partners say Beijing’s development plans violate its market-opening commitments and are based on stealing or pressuring foreign companies to hand over technology.
Some American officials worry they might erode US industrial leadership.
Chinese leaders have offered to alter details but are resisting giving up a development strategy they see as a path to prosperity and global influence.
The talks are deadlocked over how to enforce any deal.
China insists Trump’s punitive tariffs have to be lifted as soon as an agreement takes effect. Washington says at least some have to stay to ensure Beijing carries out any promises it makes.
Trump announced plans to raise tariffs September 1 on $US300 billion ($444.6 billion) of Chinese products after talks broke down in May. Increases on some goods were postponed to December 15.
Trump escalated “trade frictions” that are “seriously threatening the multilateral trading system,” the Finance Ministry said. “China was forced to take countermeasures.”
A separate statement said tariffs of 25 per cent and 5 per cent would be imposed on US-made autos and auto parts on December 15.
Beijing announced that increase last year but suspended it after Trump and his Chinese counterpart, President Xi Jinping, agreed at a meeting in December in Argentina to put off further trade action while they negotiated.
Trump and XI agreed in June to resume negotiations. But talks in Shanghai in July ended with no indication of progress. Negotiators talked by phone this month and are due to meet again in Washington next month.
Trump already has imposed 25 per cent tariffs on $250 billion ($370.5 billion) of Chinese products.
Beijing retaliated by imposing its own penalties on $110 billion ($A163 billion) of American goods. But their lopsided trade balance meant China was running out of imports for retaliation.
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