Trump calls for US$200B more tariffs on China; US futures drop

Trump assures Apple it is safe from tariffs

Trump escalates China trade war with extra tariffs

China's commerce ministry called the additional $200 billion in import taxes "extortion" and promised to "fight back forcefully" (paywall).

He said the move would be in retaliation for China's decision to raise tariffs on $US50 billion in goods.

Washington and Beijing appeared increasingly headed toward open trade conflict after negotiations failed to resolve USA complaints over Chinese industrial policies, their lack of market access in China and a $US375 billion United States trade deficit. Three people close to Apple, who remained anonymous because they are not authorized to speak for the company, say that the tech giant's top worry is that the Chinese wreak havoc with Apple's supply chain by forcing suppliers to provide pointless paperwork in order to gum up the works. Last week he threatened 25 percent tariffs on $50 billion in Chinese products with another $100 billion targeted beyond that.

China's Commerce Ministry on Tuesday criticized the latest threat of tariffs, saying it was an "act of extreme pressure and blackmail that deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the worldwide community". "The United States will no longer be taken advantage of on trade by China and other countries in the world".

The president said on Monday that he has an "excellent relationship" with his Chinese counterpart, and that the two countries would continue to work together.

The Trump tariffs, which the U.S. government says are punishment for intellectual property theft, will be enacted in two waves.

"The United States has initiated a trade war that violates market laws and is not in accordance with current global development trends", it added. "These tariffs are essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs", the president said at the time. Beijing immediately retaliated with a 25-percent tariff on 545 American products worth $50 billion, which will come into force on the same day.

China's central bank unexpectedly injected 200 billion yuan ($31 billion) in medium-term funds into the banking system on Tuesday in a move analysts said reflected concerns about liquidity but also the potential economic drag from a full-blown trade war.

"Asian currencies and stocks are feeling most of the impact compared to Europe but that could quickly change if this escalates", said fund manager Constantin Bolz of German-based wealth management firm Portfolio Concept.

Two decades ago, China's economy was largely fuelled by exports, but it has made progress in rebalancing towards domestic investment and consumption since the global financial crisis erupted last decade - limiting the damage trade tariffs could inflict on Beijing.

"If the USA side becomes irrational and issues the list, China will have to adopt measures that are comprehensive measures in quantity and quality in order to make strong countermeasures". "Not due to announcements", he said.

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