Trade War Fears Send US Stocks Down Again

Trade War Fears Send US Stocks Down Again

On last Thursday, the United States threatened additional $100 billion in tariffs on Chinese goods and China reverted on Friday that it is "ready to fight back resolutely".

Of note, Xi told the forum that globalisation is an irreversible trend, adding that China will do its part by taking major measures to open up its economy as soon as possible and widen market access to foreign-funded firms.

"We will take the initiative to expand imports", Xi said in a keynote speech at the opening ceremony of the Boao Forum for Asia annual conference held in the southern island province of Hainan.

Trump, in light of what he called China's "unfair retaliation" against earlier United States trade actions, had upped the ante on Thursday by ordering U.S. officials to identify extra tariffs, escalating a tit-for-tat confrontation with potentially damaging consequences for the world's two biggest economies.

Yang's view was echoed by David Qu, China markets economist at ANZ in Shanghai, who said Xi's speech could help lower the temperature of the "trade war".

"We hope developed countries will stop imposing restrictions on normal and reasonable trade of hi-tech products and relax export controls on such trade with China", he said.

US stocks also were affected this past Monday by Trump's new verbal attack on giant online retailer Amazon. He allowed that there "could be" a trade war but said he didn't anticipate one.

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Chief among those are the threat of faster rate rises by the Federal Reserve, a reversal in the United States dollar's steady downtrend and the risk of a full-blown trade war. China then said it would impose tariff hikes on $50 billion worth of USA goods, including soybeans and small aircraft. But Trump said last week he had told his trade negotiators not to rush talks.

He also said U.S. Trade Representative Andy Lighthizer had determined China 'has repeatedly engaged in practices to unfairly obtain America's intellectual property'.

Although it is not certain, whether #Donald Trump will actually slap on further tariffs, the Chinese administration has made it clear that it is not afraid of a #Trade War.

The Permian basin in Texas is leading the way as US oil production has reached an all-time high, but the prolific output is causing bottlenecks as pipelines transporting the crude have filled up more quickly than expected, depressing prices in the region. And he said that although the USA hoped to avoid taking action, Trump "was not bluffing".

Also Tuesday, China filed a WTO challenge against Trump's earlier tariff hike on steel and aluminum in a separate dispute. The U.S. bought more than $500 billion in goods from China previous year and now is planning or considering penalties on some $150 billion of those imports. Wang Changlin, a researcher at the National Development and Reform Commission has claimed that China can still hit its 2018 GDP growth target of approximately 6.5 percent even if the trade war continues or escalates.

"We're going to protect our farmers", he said. "China technology cold war", Eurasia Group's Triolo said, "and while it has trade characteristics for now, is about much more than trade, and this will make getting to some agreement that both sides can use to declare victory that much harder". In a double whammy to United States industry, our own government is threatening to impose 25 percent tariffs on a range of industrial goods and machinery imported from China.