U.S. stocks tumble on trade war fears


"If the USA loses its senses and publishes a new list", the statement said, "China will be forced to take comprehensive measures that are both strong in quantity and gravity and will fight back".

In total, Trump has now threatened up to $450 billion U.S. in Chinese imports with tariffs, including another $200 billion USA in Chinese goods if Beijing retaliates after the step Trump announced on Monday. Beijing immediately retaliated with a 25-percent tariff on 545 American products worth $50 billion, which will come into force on the same day.

Stock markets have fallen around the world in the wake of President Trump's latest tariffs threat to China.

USA -listed shares of Chinese companies tumbled, with e-commerce giant Alibaba down 2.3 percent and JD.com off 4 percent.

"Risking a trade war with more tariffs will only invite more retaliation that will cause significant harm to the USA economy", said the group, urging the administration instead to "work with our allies and place coordinated pressure on China to end their harmful trade and investment practices".

In 2017, following the Seoul government's decision to deploy an anti-missile system that China opposed, China forced South Korean retailer Lotte Shopping to suspend operations at many of its hypermarkets in the country for alleged violations of fire-safety rules. "The economics already seemed tight, so I can't imagine you could stack both those tariffs and continue manufacturing competitively in the U.S".

Zhang Zhiwei, chief China economist at Deutsche Bank, said U.S. companies actually may have sold more to China than Chinese firms to the US.

But investors in USA agricultural commodities appeared to be far more anxious.

Overall, however, traders do not expect serious supply shortfalls to result from Chinese crude tariffs against the United States. Higher prices on imported goods could dampen consumer sentiment and pressure inflation.

Tom Orlik, chief economist at Bloomberg Economics, said that in the event that China's exports to the USA weaken in the face of tariffs, the government would likely seek to offset the growth impact with a combination of subsidies to support domestic demand and higher infrastructure investment.

But Navarro dismissed concerns about how the administration's trade policy would affect the financial markets and global economy, saying it will have only a "relatively small effect".

If the USA goes ahead with the new $200 billion tariffs, they are more likely to be directly felt by individuals than the previous round.

"This is a predictable response to a very public effort by the United States to reconcile what it perceives to be trade differences".

Late Tuesday Trump asked his staff Monday to draw up a list of additional goods that should be subject to a 10 percent import tax in the event China retaliates against the original 25 percent tariff announced on $50 billion of imports last week. In a forcefully worded statement, it said Beijing is ready to "defend the interests of the Chinese people and enterprises".

He said China's latest action clearly indicated its determination to keep the USA at a permanent and unfair disadvantage, which is reflected in the massive United States dollars 376 billion trade imbalance in goods.

China bought American goods worth $153.9 billion a year ago, while exports to the United States totaled $429.8 billion, according to customs data.

Trump claimed that because of Canada's high tariffs, Canadians were coming into the USA and "smuggling things back" to avoid the duties.

In announcing the possibility of new $200 billion in tariffs, Trump mentioned that he still has an "excellent relationship" with Chinese president Xi Jinping.

Shares in ZTE dived after the Senate passed legislation on Monday evening that would restore penalties. US bond yields fell in a flight to safety.



Related Posts

Portugal look to brush aside Morocco for first win
Portugal have met Wednesday's opponents, Morocco , at the World Cup before, losing 3-1 in the 1986 edition of the competition. Morocco will aim to bounce back after their opening defeat against Iran , courtesy of a late own goal from Aziz Bouhaddouz.

MultiChoice finds no racism involved in Ashwin Willemse walk-out
SuperSport revealed at a media briefing on 19 June that an independent inquiry found former Springbok rugby player, Ashwin Willemse , was unjustified in his decision to walk out of a live sports show on SuperSport, which he did in May.

FIFA World Cup Golden Boot Update
Ronaldo was already seated on the bus when the boy escaped the security to reach the back door of the team bus. Spain will go up against Iran on Wednesday while Portugal will be in action against Morocco on the same day.

Ronaldo-led Portugal look for win against Morocco
You should know that only top 2 teams from each group will qualify for the knockout round of 16. "We have good players and want to give a good show", Dirar said.

Neymar limps out of Brazil World Cup 2018 training
Brazil and Switzerland are two points behind group leader Serbia, which defeated Costa Rica 1-0 in its opener. It has been confirmed that Neymar felt pain in his right ankle.

Invasive plant found in Pennsylvania could cause blistering, blindness
The plant species, which belongs to the carrot family, not just poses a threat to the skin but also impacts the environment. Giant hogweed can grow up to 14 feet tall with blossoms that look like Queen Anne's Lace but with chunkier leaves.

Corey Lewandowski mocks child with Down syndrome taken from mom at border
Trump's new policy is to separate those children from their family at the border as the adults are criminally prosecuted.

Trump, Allied Lawmakers Seek Legislative Response to Outcry Over Border Policy
Trump said he expects to "make changes" to any immigration legislation the House might pass this week. There are now 12,000 children in the custody of the Department of Health and Human Services.

England attracts support from UNEXPECTED group of fans in Russian Federation
You can't aim low. "It gives me confidence doing that and I want to do that in the games ahead". You have to stay ready for one opportunity and it can change the game".

British PM's Brexit plans set for Lords defeat, teeing up showdown
Mr Grieve insisted rebels would only accept a " meaningful vote " and not the "slavery clause" the Government was offering. Hailsham said the government's offer not only failed to deliver a promised meaningful vote but was worse.

© 2015 ExpressNewsline. All Rights reserved.