Trump promises more China tariffs

Adjust Comment Print

"If the US becomes irrational and issues this list, China will have no choice but to adopt strong countermeasures of the same amount and quality", the statement said.

It gave no details.

Stock markets tumbled on Tuesday after U.S. President Donald Trump escalated a dispute with Beijing over technology policy by threatening a tariff hike on an additional $200 billion of Chinese goods. "The trade relationship between the United States and China must be much more equitable".

"Asian currencies and stocks are feeling most of the impact compared to Europe but that could quickly change if this escalates", said fund manager Constantin Bolz of German-based wealth management firm Portfolio Concept. The Hang Seng index in Hong Kong lost 2.8 per cent.

"Escalation (of trade tensions) is a sort of impossible thing to forecast, but if it stops at this level you have probably created some nice risk premia in Asia and emerging markets", said Hans Peterson, global head of asset allocation at SEB Investment Management. Some institutional investors are "proactively" making plans to buy A shares and will buy more if the gauge falls under 3,000, the China Securities Journal reported on Tuesday, without saying where it got the information or identifying the institutions. Products from the country are integrated into global supply chains, and the US sends the country billions of dollars worth agricultural products, vehicles and machinery each year. If Intel makes a chip at its USA plants in Oregon, Arizona or New Mexico, then sends it to China for low-level assembly work and then brings it back so it can be put into a device manufactured in the United States, the chip would get hit by the tariff.

More news: Roma goalkeeper Alisson and Real Madrid ‘agree personal terms’

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

Chinese regulators also have the option of broadening their retaliation by tying up American companies in tax or anti-monopoly investigations or by denying or revoking licenses.

But Beijing's mention of "comprehensive measures" suggests that it would go beyond tariffs, said Jake Parker of the U.S.

Economists warn Washington might be undercutting its negotiating position by alienating potential allies.

China imported $129.89 billion of USA goods a year ago, while the US purchased $505.47 billion of Chinese products, according to US data. "Let's be clear: It's the most predatory economic government that operates against the rest of the world today".

More news: Germany: Interior minister gives Merkel ultimatum on migrants

In an interview with CNN earlier this month, Apple CEO Tim Cook said he didn't expect a full-blown trade war to break out and dismissed the notion that iPhones, which are assembled in China, would end up subject to tariffs. -China Business Council. He asked whether that might include delaying or denying licenses required by USA companies. Apple and the White House were not immediately available for comment.

Then China followed suit, unveiling 25 per cent duties on US$50 billion in USA imports - matching the U.S. rates.

"Although many think this might be another bluff from Trump, markets are likely to stay nervous to trade-related headlines for now".

With the world's two largest economies on the brink of a full-fledged confrontation, spooking markets and worrying business leaders, Trump on Monday said he was pushing forward with fresh punitive measures over Beijing's "unacceptable" move to raise its own tariffs. "China's government will step up an already intensive effort to determine whether Trump has the political strength to carry out his threats, while working to maximize pressure on USA interests to force him to back down and accept a compromise".

More news: Trump contradicts his own DHS secretary on abusive child separation policy