Donald Trump’s threat has met with an immediate, chilly response from Beijing, implying that the US is losing the plot.
The Ministry of Commerce in Beijing has vowed to hit back if the US actually imposes $200bn of fresh tariffs.
“If the U.S. loses its senses and publishes such a list, China will have to take comprehensive quantitative and qualitative measures and retaliate forcefully.
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Markets are sliding today after president Donald Trump escalated America’s trade dispute with China.
Overnight, Trump threatened to impose a 10% tariff on $200bn of Chinese imports, a tit-fot-tat move that could trigger a full-blown trade war.
Trump is angry that China is imposing tariffs on $50bn of US imports – in retaliation to his original tariffs on $50bn of Chinese goods. He wants Beijing to back down, or else he’ll ratchet up the trade dispute between the two powers.
The president declared:
“Unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports.
“Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship.
China has already responded firmly, accusing Trump of “blackmail” and promising “strong countermeasures” if America goes through with its $200bn threat.
The news has sent Asian investors reeling. China’s stock market has fallen by 2.7% and Japan is down 1.7% in a wide-ranging rout.
European markets are expected to slide too, with Britain’s FTSE 100 called down 55 points (0.7%).
Michael Hewson of CMC Markets says the City is increasingly worried about Trump’s approach to trade:
Things have changed overnight after President Trump upped the ante by threatening another $200bn worth of tariffs at a 10% rate on a whole new raft of Chinese goods and services, if China went ahead with their retaliation measures.
This upping of the ante saw markets in Asia slide and unlike yesterday haven bond markets rallied as US treasury yields slid back, the Japanese yen gained and gold rallied. As such European markets look set to continue their losing streak and open lower.
Asian stock markets today Photograph: Bloomberg TV Here’s the agenda
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Donald Trump’s threat has met with an immediate, chilly response from Beijing, implying that the US is losing the plot. The Ministry of Commerce in Beijing has vowed to hit back if the US actually imposes $200bn of fresh tariffs. “If the U.S. loses its senses and publishes such a list, China will have to take comprehensive quantitative and qualitative measures and retaliate forcefully. Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business. Markets are sliding today after president Donald Trump escalated America’s trade dispute with China.
Overnight, Trump threatened to impose a 10% tariff on $200bn of Chinese imports, a tit-fot-tat move that could trigger a full-blown trade war. Trump is angry that China is imposing tariffs on $50bn of US imports – in retaliation to his original tariffs on $50bn of Chinese goods. He wants Beijing to back down, or else he’ll ratchet up the trade dispute between the two powers.
The president declared: “Unfortunately, China has determined that it will raise tariffs on $50 billion worth of United States exports. Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship.”
China has already responded firmly, accusing Trump of “blackmail” and promising “strong countermeasures” if America goes through with its $200bn threat. The news has sent Asian investors reeling. China’s stock market has fallen by 2.7% and Japan is down 1.7% in a wide-ranging rout. European markets are expected to slide too, with Britain’s FTSE 100 called down 55 points (0.7%).
Michael Hewson of CMC Markets says the City is increasingly worried about Trump’s approach to trade: Things have changed overnight after President Trump upped the ante by threatening another $200bn worth of tariffs at a 10% rate on a whole new raft of Chinese goods and services, if China went ahead with their retaliation measures. This upping of the ante saw markets in Asia slide and unlike yesterday haven bond markets rallied as US treasury yields slid back, the Japanese yen gained and gold rallied. As such European markets look set to continue their losing streak and open lower.
