The tariffs imposed by China are expected to hit $50 billion of trade - similar in value to the Chinese goods targeted by the USA tariffs proposed on Tuesday in high technology sectors including aerospace, robotics and communications. The Dow Jones industrial average advanced 1 percent to 24,264.30. Household goods makers, retailers and homebuilders led the way while technology companies reversed some early losses.
Farming equipment maker Deere lost almost $10 per share at its lowest.
"It will be a couple months before tariffs on either side would go into effect and be implemented".
"Minnesota is a significant producer of both soy and wheat".
What is happening to U.S.More news: Prince Harry and Meghan Markle meet Invictus Games hopefuls
Manufacturing is also threatened by a trade war.
As of January 2018, China held $1.168 trillion in American debt, more than a $100 billion increase since the same time previous year, but down about 11 percent from the record high above $1.3 trillion in late 2013. The Nasdaq composite added 34.44 points, or 0.5 percent, to 7,076.55.
With recent fluctuations in the stock market, the congressman says a trade war with China may have an adverse affect on the overall economy.
The proposed list covers approximately 1,300 products imported from China, including industries such as aerospace, information and communication technology, robotics, and machinery, the Office of U.S. Trade Representative (USTR) said in a statement. He said that will stir up political pressure against the trade sanctions.
The White House also indicated to toughen stance against Beijing by going ahead with the proposal to impose 25 per cent import duty on more than 1,300 Chinese products. Prices of Chinese imports are up just 0.3% over the past year.More news: Pacers Record Convincing Win Over Warriors In Return Home
The eventual rally in the U.S. was too late to buoy the major European markets, which finished in the red - London down 0.1 percent, Paris 0.2 percent and Frankfurt off 0.4 percent.
Most Asian indexes closed before China announced its tariff plan, but Hong Kong's Hang Seng was still trading and slumped 2.2 percent.
Trump kicked off threats of an escalating trade war on March 8 with an announcement of tariffs on Chinese steel and aluminum. Analysts expect strong results from corporate America when companies start reporting quarterly results next week.
Tech shares mostly climbed, with biotechnology companies such as Amgen, Biogen, Celgene and Gilead Sciences all gaining more than two percent.
Bond prices turned lower.
Key gainers included Facebook, which rose 2.7 percent as investors greeted reassurances from chief executive Mark Zuckerberg that the social network's business remains solid despite a user data scandal. It fell 10 cents to $68.02 a barrel on Wednesday.More news: Far Cry 5 Becomes Fastest-Selling Game Of The Franchise