Escalating trade war between US & China sends shock waves through markets

Saudi Arabia’s energy minister may face his toughest test when OPEC members meet. Bloomberg’s Heesu Lee reports

China has underestimated President Donald Trump's resolve to press ahead with tariffs unless Beijing changes its "predatory" trade practices, a top US trade advisor said on Tuesday, in comments that undercut the chances of a negotiated settlement to a looming trade war between the world's economic superpowers.

The Trump administration said Friday that it will impose a 25% tariff on $50 billion of Chinese exports.

On Friday, I announced plans for tariffs on $50 billion worth of imports from China. The fact that America imports more from China will make it harder for Beijing to match Trump's attacks, according to Derek Scissors, a resident scholar at the conservative American Enterprise Institute in Washington who focuses on China.

President Trump said the new tariffs will go into effect unless China ends its malicious trade practices. Trump said at the time he would impose even more duties if China retaliated, which the Asian nation immediately said it would do.

Trump is ratcheting up the pressure on China as he's trying to convince USA lawmakers to let Chinese telecom company ZTE Corp. remain in business. "China seeks to acquire the crown jewels of American technology", says Peter Navarro, a White House trade advisor.

Stock markets have fallen around the world in the wake of President Trump's latest tariffs threat to China. He did not say when the target list of Chinese goods would be unveiled.

Benchmark U.S. crude lost 88 cents to $64.97 per barrel in electronic trading on the New York Mercantile Exchange.

China's commerce ministry said Beijing will fight back with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods.

China had offered to ramp up purchases of American goods by only $70 billion to help cut the yawning trade imbalance with the United States, whereas Trump had demanded a $200 billion deficit cut. Instead of "inching toward a trade war" with a series of new taxes and trade-agreement re-negotiations, "we might just have stumbled face first into one".

Trump, pursuing his "America First" policy, has been insisting that China has been unfairly benefitting from a massive trade imbalance with the USA, now estimated to be Dollars 376 billion.

"As I've said from the beginning, China will back off its industrial plans only when U.S. trade measures are large and lasting enough to threaten the influx of foreign exchange", he said.

Cook's effort to keep Apple on the positive sides of both governments has included talks with US and Chinese leaders, including an effort to work with China's Xi Jinping that employees of Apple's manufacturing partner Foxconn dubbed "Red Apple", referring to the official color of the Chinese Communist Party.

To escalate the trade war, China would have to turn to non-tariff measures. Even an internal report from the White House Council of Economic Advisers reported by the New York Times found that Trump's trade agenda would hurt the USA economy.

In the separate dispute about steel and aluminium tariffs, he also has to contend with the politically targeted retaliation that other countries such as Mexico, Canada and the European Union have in hand, meant to hit important states in the mid-term elections. "The trade relationship between the United States and China must be much more equitable", Trump said.

"If China increases its tariffs yet again, we will meet that action by pursuing additional tariffs on another United States dollars 200 billion of goods".

Related News:

  • Harry Kane goal: WATCH Kane put England ahead against Tunisia

    Harry Kane goal: WATCH Kane put England ahead against Tunisia

    Rio Ferdinand singled out Harry Maguire for his assured performance at both ends of the pitch. You can not trust us to recover from a bad result in the opening game.
    Trump supports Republican immigration bills in U.S. House: White House

    Trump supports Republican immigration bills in U.S. House: White House

    Many Republicans view the House votes as important election-year statements to voters on where they stand on immigration. It would include a legal fix for the so-called Dreamers, young people who came to this country illegally as children.
    Jordan roasts Roseanne Barr at the MTV Awards

    Jordan roasts Roseanne Barr at the MTV Awards

    The young stars of It also won for best onscreen team, beating out the casts of Black Panther and Stranger Things , among others. Brown, just 14, made headlines recently for quitting Twitter after her image and name were repeatedly used in homophobic memes.
  • Denying it has lost war on drugs, United Kingdom  rules out legalizing cannabis

    Denying it has lost war on drugs, United Kingdom rules out legalizing cannabis

    She said: "Today, a few moments ago in the House of Commons, the government commissioned a full review of medicinal cannabis". May's government said on Monday it would look into possible changes to rules on the use of cannabis-based medicines.
    17 dead after nightclub brawl in Venezuela

    17 dead after nightclub brawl in Venezuela

    However, he said the owner permitted weapons into the club that threatened the "integrity" of the establishment. Two teenagers, believed to be responsible for setting it off, have been detained along with six other people.
    Phil Mickelson goes bonkers with his putter at the US Open

    Phil Mickelson goes bonkers with his putter at the US Open

    Instead of letting the ball roll of the green, Mickelson sprinted over and hit it back toward the hole, while it was still moving. However, Masters champion Patrick Reed saw no issues. "If somebody is offended by that, I apologize to them but toughen up".
  • Roma set to sell Reds target Alisson to Real Madrid

    Roma set to sell Reds target Alisson to Real Madrid

    The Italian outfit value their goalkeeper at at a higher figure and aren't willing to change that valuation. President of Real Madrid , Florentino Perez, right and newly appointed Real Madrid coach Julen Lopetegui .
    Macron meets Italy PM as migrant crisis splits Europe

    Macron meets Italy PM as migrant crisis splits Europe

    Both nations have been enacting increasingly restrictive, anti-immigrant policies since 2015 and have pledged further crackdowns. Volunteers counted 4,000 new arrivals in the first four months of 2018. "New prime minister of Italy is great".
    What Meghan's dad made Prince Harry promise before he blessed their marriage

    What Meghan's dad made Prince Harry promise before he blessed their marriage

    "And then: "(She said) 'Of course we'll have to call him 'H" so no one knows we're talking about Harry '". Markle said the most important phone call was when Prince Harry asked for his blessing to marry Meghan .
  • Arsenal To Confirm Bernd Leno Signing On Tuesday

    Arsenal To Confirm Bernd Leno Signing On Tuesday

    Arsenal will announce the signing of Bayer Leverkusen goalkeeper Bernd Leno on Tuesday, according to reports in Germany . New Arsenal boss Unai Emery has identified Leno as the club's long-term replacement for Petr Cech .
    Audi CEO arrested in diesel emissions probe

    Audi CEO arrested in diesel emissions probe

    The scandal erupted three years ago, when it emerged that cars had been fitted with devices created to cheat emissions tests. The fallout has cost the company almost $30 billion and led to criminal charges being levied against several employees.
    Doctor Suspended After Video Shows Her Mocking Black Student Having Anxiety Attack

    Doctor Suspended After Video Shows Her Mocking Black Student Having Anxiety Attack

    An El Camino Hospital spokesperson told the news outlet that, "Obviously we take this very seriously". As they continued to argue about Bardwell's care, the doctor asked him whether he needed narcotics.


Most liked

Eoin Morgan and England break records against Australia
Thanks to twin tons by Alex Hales (147) and Jonny Bairstow (139) England managed to score 481 in their stipulated 50 overs. Travis Head top scored with 51 with Marcus Stoinis (44) the only other batsman to score more than 25.

Thomas Markle Reveals Warning He Gave To Prince Harry Before Wedding
Markle also claimed that he discussed politics with his new royal son-in-law, including the USA president and Brexit . She opted for an extravagant white hat with black structured detailing on the brim by milliner Philip Treacy.

United States withdraws from UN Human Rights Council
Under President Barack Obama the USA was elected for a maximum two consecutive terms on the council by the UN General Assembly. But Haley said that if the council does reform, the United States "would be happy to rejoin".

All 5 first ladies speak out against family-separation immigration policy
Fox News hosts Laura Ingraham said the detention centres were "essentially summer camps" for migrant children. Top conservatives, including key Trump allies, have introduced bills to keep the migrant families together.

"Apple expects 45 million preorders of the 6.5" OLED iPhone
Instead the company is, according to a report in Forbes based on Olixar information, will launch three variants of the iPhone X. These will be the iPhone X, which will use a 5.8-inch screen similar to the one that is in the existing iPhone X.

Disney Seen Adding Cash To Fox Bid; Pivotal Fears Comcast Bidding War
Under the proposed plans, Sky News would receive guaranteed funding of £100 million ($132 million) a year. Sky said this afternoon that it welcomed Mr Hancock's statement.

1 dead, several injured in Trenton cultural event shooting
"And the people fighting and shooting got mixed with the crowd that was running and they went out the door shooting". The group Moms Demand Action had a table and volunteers at the festival when the shooting happened.

The Spurs Reportedly Won’t Trade Kawhi Leonard Until This Happens
As one of the elite two-way players in the league, the Spurs will demand a significant package in return for their star. Any offer Cleveland might make would have to start with the No.8 overall pick in Thursday's NBA Draft.

Led coalition strikes Syrian army positions in Deir ez-Zor province - SANA
The US-led coalition has reportedly bombarded a Syrian military position in the country's eastern province of Dayr al-Zawr. Damascus says it considers the United States an occupying force in Syria and supports any resistance against U.S. forces.

Gaming disorder now a disease according to WHO
The WHO stressed that only a small number of people who use digital or video games develop gaming disorder . This means that those diagnosed will be entitled to be treated by the NHS.

Netflix show director's Tesla auto catches fire 'out of the blue'
The video was posted on Twitter by actress Mary McCormack , who said it showed her husband's vehicle engulfed in fire. The footage, dated June 15, shows a auto engulfed in flames while parked at the side of the road in California .

One dead and four injured after gunman opens fire in Malmo
Last year, the country saw more than 300 confirmed shooting incidents, which left 41 people dead and 135 injured. The shots caused bystanders to scream but police quickly said there was no reason for the public to worry.

Saudi Arabia land safely after plane fire
Flames were seen from the engine as the Russian Airlines Airbus was en route to Rostov where they take on Uruguay on Wednesday. However, the Saudi Arabian Football Federation was quick to release a statement saying that the players are safe.

Apple Fined Millions by Australian Court Over False iPhone 'Error 53' Claims
ACCC Commissioner Sarah Court said this was a direct violation of consumer rights in Australia. In the federal court, Apple US admitted it had said as much "to at least 275 customers".

China says N Korean leader Kim Jong Un visiting Beijing
Rather than use a North Korean plane to reach the Singapore summit, Kim used an Air China plane that was lent to him. On Tuesday, China's state-run CCTV reported that North Korean leader Kim Jong-un is on a two-day visit to China.