Trump tweets about soybeans, trade during North Atlantic Treaty Organisation summit

Elias Hubbard
July 12, 2018

Stocks began to be traded lower today as a trade war between the U.S. and the other major economies became a reality after President Donald Trump unveiled new tariffs on Chinese goods.

U.S. officials issued a list of thousands of Chinese imports the Trump administration wants to hit with the new tariffs, including hundreds of food products as well as tobacco, chemicals, coal, steel and aluminum.

- Global stocks tumbled Wednesday after Beijing hit back at US plans for tariffs on $200 billion more Chinese exports, with tensions rising over the trade war between the world's two largest economies.

The Trump administration announced Tuesday that it has started the process of implementing fresh tariffs on $200 billion worth of imported Chinese goods. High-level talks between the two countries starting in May failed to deliver a breakthrough to head off a trade war.

Oliver Jones from Capital Economics has warned that China's response to Trump's latest tariff threat could hit the USA stock market hard. It's an extensive list of over 6,000 goods that include seafood, propane and toilet paper, among many other things. Tesla is among companies hit by an additional 25 percent in import duties, imposed by Beijing in retaliation to a tariff hike by the Trump administration.

During its trade dispute with the USA, which has seen the world's two biggest economies impose new import tariffs on each other's goods, China could increase its imports of soybeans from South American countries, Cofco president Yu Xubo said in an interview with the Communist Party's official People's Daily.

That prompted fears it might go beyond matching Washington's duty increases by disrupting operations for U.S. companies in China. China responded with levies of its own, targeting $34 billion in USA products such as pork and whiskey.

"It is totally unacceptable for American side to publish a tariff list in a way that is accelerating and escalating", said a Commerce Ministry statement.

"Although I have supported the administration's targeted efforts to combat China's technology transfer regime, tonight's announcement appears reckless and is not a targeted approach", said Sen.

The latest escalation in the trade dispute sent markets lower.

Members of Congress are increasingly questioning Trump's aggressive trade policies, warning that tariffs on imports raise prices for consumers and expose United States farmers and manufacturers to retaliation overseas.

The US administration late on Tuesday released a huge list of new tariffs on $US200 billion worth of goods from China.

"Unfortunately, China has not changed its behaviour - behaviour that puts the future of the U.S. economy at risk".

"It looks like the United States just took the scale of the trade frictions to another level", Li said at a forum in Beijing.

"China seems to have no interest in bending and they will retaliate".

Other reports by Click Lancashire

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