Chinese shares extend weekly losses as U.S

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President Donald Trump's tariffs on $34 billion of Chinese products officially went into effect on Friday and China has responded by imposing their own tariffs on over 500 American products, including Ohio's second largest export soybeans.

The total value of the USA tariffs on China amounts to $50bn, though they will come into effect in two tranches, with the first round covering 818 products worth about $34bn having come into force on Friday. The United States hiked tariffs on Chinese imports Friday and Beijing said it immediately retaliated in a dispute between the world's two biggest economies that President Donald Trump says he is prepared to escalate.

United States pork was already saddled with duties enacted in an earlier round of the trade row and now faces an extra 25 percent tariff that would raise the total charges up to 62 percent.

Mexico is also studying how to reduce the economic strain of an escalating trade spat, an action that China has also adopted.

Chinese currency and stock markets have been jittery ahead of Friday's tariff implementation.

Reuters reported that European officials have said China has put pressure on the European Union to issue a strong statement against Mr Trump's trade policies.

Relations have soured between US President Donald Trump's administration and that of Chinese President Xi Jinping since they met in Beijing past year, sparking fears of an all-out trade war.

The president upped the stakes on Thursday, saying the amount of goods subject to tariffs could rise to more than $500bn.

Washington increased tariffs at 12:01am Eastern time (4:01 GMT) on $34bn worth of Chinese imports, a first step in what could become an accelerating series of tariffs.

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Trump repeatedly has slammed what he describes as Beijing's underhanded economic treatment of the United States. Taken together, the goods are worth some 34 billion dollars.

This is the first round of Trump's punishment of China for allegedly stealing USA technology. Sinovel has agreed to pay AMSC a total of $52.5 million in restitution.

Oil prices were supported as larger-than-expected fall in US stockpiles data from the American Petroleum Institute confounded worries about supply shortage.

European pork will gain some ground over the USA, which shipped nearly $500 million worth of pork to China previous year.

China central banker Ma Jun said the first punches would have only a "limited impact" on the nation's economy, trimming GDP growth by 0.2 percentage points. "Tariffs will negate gains made by the public from tax reforms and deregulation, push up US production costs, damage the competitiveness of businesses and their workers, and force companies to look outside the U.S.to maintain production".

During an official visit to Bulgaria, China's No. 2 leader, Premier Li Keqiang, said "no one will win by fighting a trade war, yet China will take countermeasures in the face of unilateral moves".

While new import duties on USA meat can result in decreased export volumes as US products are priced out of the market, they can also lower prices and margins for exported items as the trade adjusts to the new higher duties.

In the latest sign that the risk of penalties is hitting trade, a vessel carrying US coal and heading for China switched its destination to Singapore. "I will try my best to support domestic products".

The paper holds that the tariffs will affect several US sectors, including technology (which Trump says he's trying to protect) while hitting multinational supply chains and firms, as well as harming foreign investment in Chinese firms by allies such as Japan, South Korea, and European Union countries.

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