U.S. Formalizes China Tariff Plans; Lawmakers Hold Barr in Contempt
Striking scenery world-class music and film festivals and authentic. Character are just a few reasons why telluride Colorado is a favorite summer destination. Telluride offers endless outdoor activities catering to all passions and tastes. For more information. Go to visit telluride dot com slash W s j. The Trump administration has formalized plans to raise tariffs on China would go in and be different about these tariffs that could hit on Friday is that they're gonna fall really heavily for the first time on consumer goods. You're going to be looking at twenty five percent tariffs on nearly fifty billion dollars worth of consumer goods. Plus the fight over the Muller report. Intensifies and Uber prepares for its public debut. This is what's news from the Wall Street Journal. I'm Anne Marie for totally and New York before we get to our top story on trade tensions between the US and China. Here are some other stories we're following the battle over the Muller report is likely to end up in federal court after the House Judiciary committee voted twenty four to sixteen in favour holding attorney general William bar in contempt for failing to release the full version. Wednesday's vote came hours after President Trump asserted executive privilege on all the material in the report. The contempt resolution it still needs to be approved by the full house, but has the support of democratic leadership for the latest developments on the fight over the Muller report. Please head to our website, WSJ dot com or the WSJ app. President Trump tweeted on Wednesday in response to a report from the New York Times this week that showed he claims losses of one point one seven billion dollars from nineteen eighty five to nineteen ninety four and paid no income taxes in eight of the ten years. Trump tweeted, quote, you always wanted to show losses for tax purposes. Almost all real estate, developers did and often renegotiate with banks. It was sport the times reported that Trump claimed more losses than any other individual tax payer in the US over that period. Trump has refused to release his tax returns citing an audit. Uber is expected to price is initial public offering at the mid point of its target range between forty four and fifty dollars a share or about eighty to ninety billion dollars accord. To the Wall Street Journal. The company is pitching investors ahead of setting the price of its shares on Thursday, the ride hailing giant makes its public debut Friday shares of rival lift which debuted in March how fallen more than twenty percent from their peak at caution to what's expected to be a big year for tech IPO's. Striking scenery world-class music and film festivals and authentic. Character are just a few reasons why telluride Colorado is a favorite summer destination. Telluride offers endless outdoor activities catering to all passions and tastes. For more information. Go to visit telluride dot com slash W s j. The Trump administration has formalized plans to raise tariffs on two hundred billion dollars worth of Chinese imports on Friday. The office of US Trade Representative Robert lighthizer filed paperwork on Wednesday a day ahead of a planned. Visit by China's top trade envoy to resume trade talks in Washington. Joining me now from Washington with the latest details is the Wall Street Journal's Josh zoom Brune, Josh this seems like a move to raise the stakes and the pressure ahead of Thursday's meeting between the US and China. What does filing do exactly well over the weekend? President Trump had threatened to do this and said that the US was going to move forward with raising these tariffs, and what's emerged since then is that the US decided to take some tougher action because they feel that China has backslid on some of the commitments to hit made earlier in the talk said that one point it had said it was willing to do, you know, make bigger commitments in the US view. And that is some point at walked away from those. At this point. We don't know exactly what it was that China promised and then decided not to move forward with. But at any rate, the US said they were going to do this in the step today shows that they really are. I mean, this is the paperwork that the that the government has to file for the tariff increase to actually go into effect. The tariffs will take effect higher terrified. We'll take affect on Friday now because they've got this paperwork in motion. Now at the same time the pressure to resolve this dispute is also on the US as well. We saw trade tensions roiling US markets on Tuesday. That's right. I mean, one of the reasons it seems like the US was willing to kind of take a gamble on this move was that markets had recovered from where they were in December. If you remember back in December the market was down almost twenty percent. And that happens to be the month that these trade talks got underway with China and started looking like, we were moving towards a more peaceful outcome and the market mostly are entirely recovered from that from that where it was in December. And if it starts to go back down like that. I think. Maybe will really start to put pressure on the US. But I would just you know, right now we were down yesterday in the market, but the market's still a very high level and so right now, they're probably not feeling a huge amount of pressure. But they're going to be watching that market reaction very closely and Joshua, and our other reporters have been keeping us up to date on the talks, what are the major hurdles that remain to finally striking deal. Well, I think the the biggest one is that the two sides have put a huge amount of tariffs on each other. I mean, even before this action the US had applied tariffs to two hundred fifty billion dollars of Chinese imports each year. China has retaliated of a similar magnitude China's retaliation has been has been really hard on the US agriculture sector. And so they need to find a agreement that will allow these tariffs to to come off over time. And they also need to structure the deal. So that there's enforcement in the future. You know, they need to. To structure the steel in such a way that China and the US have some mechanism that requires them to actually follow up on their commitments. I mean, what sometimes happens in these deals is country says, oh, you know, we're going to we're going to change our regulations in the future to make things easier. And then they don't really change the regulations. Very well. So it's very tricky. And this is the this has been the key stumbling block really to write a deal that is enforceable. That that if the country's go back on their commitments, you have a way to kind of force them to come along. And so those seem to be kind of the big sticking points that we still don't know how they're going to be resolved. And that's just assuming that the Dale still happens. I mean, there's also a chance that this latest move will cause the deal to just kind of completely fall apart. We also have been reporting on the Wall Street Journal on how this would impact consumers, what can you tell us about that? Well, this is going to be different than any of the rounds of tariffs. We've seen over the past year. I mean, the first big tariffs. They did we're on steel and aluminum, which is not. Stuff that people buy directly, you know, ordinary people don't go out there and buy a ton of aluminum, obviously. And when they first did sheriff tariffs on China. They also avoided consumer goods, they almost entirely did kind of stuff that businesses purchase intermediate goods or capital goods, they call it. So, you know, you're talking about things like machinery for factories, you're talking about chemicals, and plastics and raw materials and circuit boards. And things that go in spurts stuff that people don't buy directly, and what's going to be different about these tariffs that could hit on Friday is that they're gonna fall really heavily for the first time on consumer goods. You're going to be looking at twenty five percent tariffs on nearly fifty billion dollars worth of consumer goods. And so it's almost certainly going to be the case that consumers are going to see prices go up at their retail at their local, you know, WalMart or I think is the biggest importer of of anyone in the United States. And so you're gonna see prices at those kinds of places start to go up potentially very significantly because those goods Ar- are facing. A new tax taxes and said these goods are really going to some people are really going to start noticing prices going up. Now, I think that's the Wall Street Journal's Josh zoom Brune joining us from Washington DC with the latest on trade tensions between the US and China. Josh. Thank you so much. Thanks for having me. Now onto some more headlines. From the Wall Street Journal, General Electric shareholders have approved the company's executive compensation plans and rejected a proposal to appoint an independent chairman. But the results weren't without protest GE said about thirty percent of the votes were cast against the executive pay plans and twenty-seven percent voted to separate the roles of chairman and chief executive officer the votes came at jeez annual shareholder meeting. We're CEO Larry cope faced shareholders for the first time and finally an accountant who analyzed democratic presidential candidate Bernie Sanders taxes found four stakes in his oldest handwritten tax returns from two thousand nine the analysis found Sanders underpaid by four thousand four hundred seventy nine dollars because of the mistake. The Wall Street Journal's Richard Rubin says the analysis shows the perils of do it yourself tax preparation. Technology exists for reason in there been many things that have come out of modern. Technology that are bad. But software that double checks things for you. While you're doing your taxes is actually one of the better things that has come out of to happen. The tax preparation people aren't really sitting at their kitchen tables. They're sitting at their office desks and they're typing instead of handwriting. And and this is a lesson to think he's a lesson. Clearly that we've seen Senator Sanders and his wife learn because if you look at the following year in two thousand and ten they have a paid preparer. Who is clearly using software Sanders campaign says quote, any minor inadvertent errors made were identified soon. After filing the original tax returns and promptly addressed. How about you have you had any problems filing your tax returns? Let us know by tweeting us at W S J podcasts or emailing us at what's news all one word at WSJ dot com. And that's what's news for this Wednesday afternoon. I'm Marie Fratto league for the Wall Street Journal.