China trade war fears hit global stock markets hard

Trump escalates China trade war with extra tariffs

The Trump administration, on the other hand, could impose tariffs on up to $400bn of Chinese goods.

The Trump tariffs, which the United States government says are punishment for intellectual property theft, will be enacted in two waves. "China has been taking out $500 billion a year out of our country and rebuilding China".

Beijing has offered to narrow its politically volatile trade surplus with the United States but has resisted changing development plans its leaders see as a path to prosperity and to restoring China's rightful role as a global leader.

The Australian dollar sank to a one-year low of A$ 0.7380 on the escalating U.S.

Either way, even if Trump goes on to impose tariffs on US$300 billion or even US$400 billion of Chinese goods, Beijing could only levy duties on a total of US$100-plus billion of United States products. The Dow Jones industrial average is called to open more than 350 points lower.

"One thing that we've heard specifically from companies is that the Chinese government has been holding meetings with domestic private and state-owned enterprises where they talk about diversifying away from the procurement of U.S. products and services and shifting those contracts to European, Japanese or domestic Chinese companies", Parker said.

Emerging market currencies also came under pressure, with the South African rand shedding 1.9 percent to hit its seven-month low of 13.9150.

The Business Roundtable, representing companies with more than $7 trillion in annual revenue, said the administration's feud with China "will only make it harder to achieve a fair and level playing field for American companies to compete in China".

U.S. President Donald Trump is preparing to go all in on his big bet on tariffs against China.

In the latest move in an escalating trade dispute, President Trump announced Monday evening that he was asking U.S. Trade Representative Robert Lighthizer to suggest $200 billion worth of Chinese goods on which the U.S. could impose a 10 percent tariff.

China's commerce ministry said Beijing will fight back firmly with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods, accusing Washington of launching a trade war.

Neither side has yet imposed tariffs on the other in their growing dispute over technology and the USA trade gap.

The United States had already announced it will impose 25 percent tariffs on $50 billion in Chinese goods beginning in July to punish China for what Trump says are unfair trade practices.

"Most damaging for businesses and investment is perhaps rising uncertainty caused by lasting trade disputes, which could delay or significantly change business and investment decisions", warned economists at UBS. Those tariffs, set to start taking effect July 6, were matched by China's threat to penalize US exports.

The 25 percent duties imposed by China go into effect July 6, and cover high-profile US products such as electric vehicles, soybeans, whiskey, orange juice, lobsters, salmon and cigars.

Even if Americans don't buy these items directly, they could still feel the impact as United States companies raise their prices to help them pay for more expensive machines and industrial goods.

Updated: This article has been updated to add Trump's threat to possibly follow the new round of tariffs on $200 billion of goods with another round.

But Beijing faces challenges in retaliating directly: China ships far more goods to the United States ($505 billion past year, according to U.S. figures) than come back in the opposite direction ($130 billion).

He estimated that USA crop farmers have lost $100 per acre in revenue over the past two weeks in the most rapid erosion of US farm profit since at least 1979 due to the administration's battle with China.

US futures are suggesting that the sell-off will continue when trading opens in NY. Trump also has slapped tariffs on steel and aluminum imports from Canada, Mexico and European allies.

The move quickly drew praise from former Trump senior adviser Steve Bannon, who said: "President Trump told China and the world tonight that America will not back down when it comes to economic aggression".

Related news:

Hot News

isis-killer-beheading-video-story-top North Korea pledges to destroy missile test engine site
Jun 23, 2018 - 00:05
It conducted its most powerful nuclear test past year and has sought to develop a missile capable of hitting the USA mainland. What is know has been pieced together from experts' reports and the North Korean state news agency KCNA .

isis-killer-beheading-video-story-top Upcoming iOS 12 Will Share Emergency Location With 911 Services
Jun 23, 2018 - 00:04
Apple said the feature will build upon its existing HELO (Hybridized Emergency Location) technology, which it launched in 2015. Apple will also use tools developed by the company RapidSOS to quickly share that data with 911 call centres.

isis-killer-beheading-video-story-top VAR gives France penalty vs. Australia
Jun 21, 2018 - 08:54
Antoine Greizmann opened the scoring the in 58th minute, after a video review awarded France a penalty kick. But the French showed guts to secure the three points with a good pressing toward the end.

isis-killer-beheading-video-story-top Senegal and Japan fans help clean up stadiums following World Cup games
Jun 21, 2018 - 08:38
For the Japanese fans, the act isn't certainly an isolated one. And Senegal weren't the only fans to show their humble side.

isis-killer-beheading-video-story-top Gregg Popovich meets with disgruntled Kawhi Leonard
Jun 21, 2018 - 07:50
Wojnarowski reported that the Spurs haven't given suitors guidance on what they'd be seeking for Leonard in a trade. After a frustrating season, Kawhi Leonard has reportedly had enough of the San Antonio Spurs .

isis-killer-beheading-video-story-top Alford: Sixers should be wary of Kawhi Leonard trade
Jun 21, 2018 - 06:33
He has a couple of players that he could trade to San Antonio like Brandon Ingram , Lonzo Ball , Julius Randle, or Kyle Kuzma. It will be interesting to see what type of reception Leonard gets when he suits up for a new team and returns to AT&T Center.

isis-killer-beheading-video-story-top England's first half first class, Latest Football News
Jun 21, 2018 - 06:33
You never stop until the final whistle and thankfully it paid off for us with a late goal and a big win in the group stage. England players celebrate Kane's goal. "We just have to hope the officials get it right more often than not".

isis-killer-beheading-video-story-top South Korea Seeks India's "Full Support" For Lasting Peace In Peninsula
Jun 20, 2018 - 20:37
The two rivals also agreed to establish new ties and work to build a "lasting and stable peace regime" on the Korean peninsula. Such joint events to mark the anniversary were last held in 2008 at Mount Kumgang on North Korea's east coast.

isis-killer-beheading-video-story-top France, Germany agree to set up eurozone budget: Merkel
Jun 20, 2018 - 20:02
We see states that are turning inward, trying to find national solutions to problems that require European solutions. Germany received more than a million refugees in the last thee years, mostly from Syria and Iraq.

isis-killer-beheading-video-story-top Disney boosts Fox bid to $71.3 bn to counter Comcast
Jun 20, 2018 - 19:57
If Fox were to start negotiations with Comcast, that could impact plans for shareholders to vote on the Disney deal next month. The battle for Twenty-First Century Fox reflects a new imperative among entertainment and telecommunications firms.

isis-killer-beheading-video-story-top Cristiano Ronaldo makes more history as Portugal beats Morocco
Jun 20, 2018 - 19:25
Morocco dominated its opening match against Iran but lost 1-0 on an own-goal by forward Aziz Bouhaddouz in stoppage time. The much-talked about plan of a Portugal in possession, spreading the play and dictating the tempo, never materialised.

isis-killer-beheading-video-story-top Mexico fans trigger quake with celebration after goal against Germany
Jun 19, 2018 - 10:48
The proof is in audio clips of his narration of the moment when Lozano placed a flawless kick to secure Mexico's early lead. "We simply have to concentrate on our strong points that we have not been able to bring to bear in the last two matches".

isis-killer-beheading-video-story-top Trump announces 25 percent tariffs on $50 billion in Chinese goods
Jun 19, 2018 - 10:46
And the trade imbalance between the United States and China is not as big of a problem as the president seems to believe it is. Those include 818 products, worth $34 billion a year, remaining from a list of 1,333 the administration released in April.

isis-killer-beheading-video-story-top Trump says "possible" to meet with Putin in summer
Jun 19, 2018 - 10:45
A meeting with Putin could be Trump's next dramatic diplomatic move after his historic nuclear summit with North Korea leader Kim Jong Un in Singapore.

isis-killer-beheading-video-story-top Gaming disorder recognized by World Health Organization
Jun 19, 2018 - 10:41
Interestingly, the revision also says that compulsively playing video games now qualifies as a new mental health condition .