Markets

Trump says tariffs to kick in against China

Trump says tariffs to kick in against China

Chinese stocks have taken a beating in recent weeks, and are down more than 16% this year, as concerns about the trade war have mingled with worries about China's ability to control its debt and maintain growth. "We absolutely will not fire the first shot, and will not implement tariff measures ahead of the United States doing so", it said, without elaborating.

US-CHINA TARIFFS: On Friday, the U.S.is set to impose a 25 percent tariff on $34 billion worth of Chinese imports.

Russian Federation says it has raised tariffs on some USA imports in response to the US move to impose tariffs on foreign steel and aluminum.

Economists usually agree higher tariffs are counterproductive.

The Trump administration contends China has deployed predatory tactics in a push to overtake United States technological dominance.

Vehicle makers, which face higher steel costs due to the tariffs, have been whipsawed. He noted that the new Russian tariffs will only allow a partial compensation of $87.6 million.

On Thursday, Trump said that he is willing to slap tariffs on up to $550 billion, which actually exceeds the current value of Chinese imports to the United States by $46 billion. No exact date was given.

A record volume of US crude oil is heading to China even as Beijing's planned tariffs threaten to cut off a relatively new and burgeoning business for USA exporters. Those tariffs will add $500 to $1,000 to the total cost of solar panel installation, according to the firm Energy Sage.

Substantial they may be, but the average US consumer will likely not see these impacts directly for a little while.

"If the USA implements tariffs, it is actually imposing tariffs on Chinese and foreign companies, including U.S. companies", Mr Gao Feng, spokesman for the Ministry of Commerce, said yesterday.

The root of the problem for Trump with Canada and Mexico stems from the North American Free Trade Agreement (Nafta), signed in 1994, which the president has called a "disaster" and "one of the worst deals anybody in history has ever entered into". So, we could possibly see even more of an escalation in this trade battle. He did not specify which measures.

One study said as many as 400,000 jobs could be lost.

He says: "If someone insists on waging a trade war, it would hurt others as well as themselves".

German Chancellor Angela Merkel and Chinese Prime Minister Li Keqiang are holding talks on closer economic cooperation in Berlin on Monday as the two countries seek a coordinated strategy in response to the U.S. administration's protectionist agenda.

US light crude futures traded up 0.6 per cent at $74.62 per barrel, after rising above $75 for the first time in more than three years on Tuesday.

It appears that positive job figures have allayed fears of what the impact of a trade war could be.




Oil prices ticked up after falling on USA government data that showed an unexpected jump in crude oil stockpiles.

President Donald Trump on Monday warned the WTO that if the USA isn't treated "properly, we will be doing something".

Beijing earlier released a target list of $34 billion worth of imported U.S. goods, including automobiles and agricultural products that also faced 25 percent tariffs.

The back-and-forth trade battle between the world's two largest economies will likely be damaging to the USA economy according to trade experts, ths fact was not lost on the Chinese.

He said: "It is an infernal logic, a risky logic, a logic that is in nobody's interest, starting with the U.S".

The U.S. put a 25 percent tax on $34 billion worth of Chinese imports Friday.

A foreign ministry spokesman, Hu Chunhua, on Friday gave no details of the increase.

There was confusion about exactly what US products would be hit in the initial wave of tariffs as China's Commerce Ministry had not published an updated list.

A China central bank adviser said the planned USA import tariffs on $50 billion worth of Chinese goods - $34 billion plus a planned follow-on list worth $16 billion - will cut China's economic growth by 0.2 percentage points, although the overall impact would be limited, the official Xinhua news agency reported Friday.

The 25% levy came into effect at midnight Washington time.

"The market has already digested (the news of tariff implementation)", said Ken Cheung, senior Asian FX analyst at Mizuho Bank in Hong Kong. The Shanghai Composite index fell 1.1 per cent, after reaching more than a two-year low this week, while USA indices are expected to follow suit when they open later today.

The Shanghai Composite Index .SSEC ended up 0.5 percent after flirting with two-year lows in the morning session.

China's says it is "forced to make a necessary counterattack" to a US tariff hike on billions of dollars of Chinese goods but gave no immediate details of possible retaliation. This allows Washington to take unilateral action when it determines that a trading partner has engaged in unfair practices.

China's Commerce Ministry said it would be "forced to make a necessary counterattack".

The Finance Ministry has yet to formally issue the final list of goods to which the higher tariffs will apply.


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