Markets hit as Trump threatens new tariffs on China

Markets hit as Trump threatens new tariffs on China

Markets hit as Trump threatens new tariffs on China

"Tonight's announcement appears reckless and is not a targeted approach", Senate Finance Chairman Orrin Hatch, a Utah Republican, said in a statement.

China's commerce ministry said it was "shocked" and would complain to the World Trade Organisation, but did not immediately say how it would retaliate.

"This type of irrational behavior is unpopular", the statement said, adding China would tack on the case to its suit against the USA at the WTO.

China on Wednesday said tit-for-tat tariffs will "destroy" trade between the world's top two economies, after Washington fired the next shot in a ballooning trade war, readying fresh levies on Dollars 200 billion in Chinese goods.

China slammed the latest United States tariff threat as a "totally unacceptable" escalation of their trade battle and vowed Wednesday to protect its "core interests".

"China is showing no signs of backing down and instead looks like it is preparing for a drawn out conflict", said Scott Kennedy, deputy director of China studies at the Center for Strategic and International Studies in Washington.

"We will take firm and forceful measures", Hua Chunying, a Chinese Foreign Ministry spokesperson, said of the latest round of tariffs but gave no other details of what exactly Beijing plans to do in response.

"The trade situation is worrisome but nothing more is going to happen right away".

At a forum in Beijing, a senior official accused the U.S. of "damaging the world economic order" and said it would "destroy" trade between the rival powers.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 11, 2018. Chinese diplomats have sought to build alliances in Washington while making the case for how USA investment in China is mutually beneficial for the two countries.

China is no stranger to trade fights, but their approach toward the USA is being handled differently than prior battles. "Unfortunately, China has not changed its behavior - behavior that puts the future of the USA economy at risk".

"Rather than address our legitimate concerns, China has begun to retaliate against U.S. products. There is no justification for such action".

Investors have been particularly anxious that the trade row could harm an already slowing Chinese economy in a blow to global investment and growth. China has pledged to fight back dollar-for-dollar.

The National Association of Manufacturers also criticized the US decision, saying this latest round of tariffs could undermine the economic gains from the administration's tax and regulatory reform policies.

'Given China's likelihood of retaliation, it's also billions worth of new tariffs on American exporters'. Those nations have also retaliated.

Further, reporters were told specifically, "Don't attack Trump's vulgarity; don't make this a war of insults".

"American families are the ones being punished".

That intensification of the trade skirmish, which is now being upgraded to a full-scale trade war by some commentators, has investors spooked about the future of the global world order, and the global economy, pushing stock markets around the world deep into the red.

Louis Kuijs, Hong Kong-based Head of Asia Economics at Oxford Economics, said while he expects China to strongly condemn the United States moves, its policy response is likely to be limited for now.

The earliest they would come into effect is September.

Global markets in turmoil as Trump intensifies trade war once again.

ACC does not believe the tariffs will change China's trading practices. The US hit Chinese exports worth $34 billion with a 25 per cent tariff last week and Beijing infuriated the White House by...

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