Trump threatens new tariffs on Chinese imports, Beijing calls it 'blackmail'

Cornelia Mascio
Giugno 21, 2018

USA soybean futures were among the biggest casualties after President Donald Trump threatened to impose a 10 percent tariff on another $200 billion of Chinese goods, a threat that China's commerce ministry described as "blackmailing", vowing to retaliate.

With concerns growing on Wall Street, the Dow Jones industrial average closed down almost 300 points - more than 1 percent - on its sixth straight losing day.

Updated: This article has been updated to add Trump's threat to possibly follow the new round of tariffs on $200 billion of goods with another round.

The initial round of penalties announced by both nations is scheduled to take effect on July 6.

U.S. stocks started Tuesday's session in a sea of red after President Donald Trump threatened to place tariffs on an additional US$200bn worth of Chinese imports.

But Beijing's mention of "comprehensive measures" suggests that it would go beyond tariffs, said Jake Parker of the U.S. He said China's previous attempts to defuse the situation - China reportedly offered to purchase billions of dollars' worth of U.S. agricultural and energy products - were not enough. S&P 500 futures were off 1 percent and Dow Jones futures were 1.1 percent lower. Britain's FTSE 100 dipped 0.4 percent to 7,605.

The August gold contract closed down US$1.50 at US$1,278.60 an ounce and the July natural gas contract ended down five cents at US$2.90 per mmBTU.

Industrial and technology companies took some of the worst losses as investors anxious that the dispute could grow more intense and drag down global economic growth. "We'll see whether or not we can make a reasonable NAFTA deal".

Time is running out for Beijing to fulfil its reform promises if it hopes to maintain stable growth, a top European business lobby said on Wednesday, contending that the roots of U.S.

However, many market watchers believe there is still room for compromise, suspecting Trump's announcement was a negotiating tactic to wring faster concessions from Beijing.

China's retaliation list was increased more than six-fold from a version released in April, but the value was kept at $50 billion, as some high-value items such as commercial aircraft were deleted.

Aerospace company Boeing dropped 3.5 percent to $342.37 and construction and mining equipment maker Caterpillar shed 3.4 percent to $143.58.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. June 13, 2018. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey. Saudi Arabia and Russian Federation are seeking to raise production by 1.5 million barrels per day, but they may not get their way, experts say.

The euro sank to $1.1576 from $1.1615.

The Japanese yen strengthened 0.45 percent versus the greenback at 110.07 per dollar.

Companies also are watching the fate of ZTE Corp. The yield on the USA 10-year Treasury fell to 2.88 percent from 2.92 percent. But last week, Trump unveiled a revised list that included several categories of chips, raising fears that tariffs could impact the USA technology sector.

Its Hong Kong-listed shares tumbled 25 percent to a two-year-low, while its Shenzhen shares fell by their daily limit of 10 percent for a fourth consecutive session. The price the United States wants is not only to take advantage of China; even more so it wants to wreck China's economy. The yield on the 10-year Treasury note fell to 2.88 percent from 2.92 percent.

Big industrial and technology companies skidded Tuesday as the trade dispute between the US and China threatened to come to a boil. In April the Commerce Department blocked ZTE from buying USA components for seven years, a move that amounted to a death sentence for the company. Acacia Communications gave up 4.5 percent to $33.68 and Oclaro sagged 3.4 percent to $8.71.

"Although many think this might be another bluff from Trump, markets are likely to stay nervous to trade-related headlines for now".

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE