Us China Trade War

Randall Padilla
April 10, 2018

Trump said on Thursday he had ordered US trade officials to consider tariffs on an extra $100 billion of imports from China, escalating tensions with Beijing.

Chinese President Xi Jinping's speech at the Boao Forum appears to have gone down well with investors across Asia.

When stocks were getting bombarded with bad news on trade, tech privacy lapses and interest rate fears, Wall Street was holding out hope the US market could defend a key line of defense that had been in place for 442 trading days.

-China trade dispute. While President Donald Trump continued to bash America's trade deals on Twitter, he said the USA and China could settle their dispute.

China on Friday said it will take "comprehensive counter-measures" if the USA continues its unilateral, protectionist practices.

Based on wire headlines from Reuters, Xi made all the right noises when it came to the outlook for Chinese trade policy, helping to calm investor nerves that have been rattled over the past month as trade tensions between the United States and China increased.

China warned on Friday it was fully prepared to respond with a "fierce counter strike" of fresh trade measures if the United States follows through on Trump's threat.

The U.S. imported 58,000 passenger cars from China worth $1.5 billion past year, according to the International Trade Administration, a federal agency within the Department of Commerce. "Then we could see a rapid uptick of USA investment in China" due to companies buying up stakes in financial services, automobiles and other industries.

The trade war between the United States and China continues.

Chief among those are the threat of faster rate rises by the Federal Reserve, a reversal in the USA dollar's steady downtrend and the risk of a full-blown trade war. Trump said in his tweet.

Trump ordered the tariffs after the US Trade Representative's office concluded China abuses American intellectual property and forces US companies to transfer technology. "When you are shut out of dollar funding markets, a lot of your business will just stop working", Saxo Bank's Garnry said, while cautioning Russia's smaller role in global financial markets would limit the wider fallout. Even after that, it's not clear when the tariffs would be applied. The move prompted Mr Trump last week to threaten tariffs on an additional US$100 billion in Chinese goods, which have yet to be identified.

"With the tariffs on some of these electrical appliances, the USA might have to source these products from other countries in the region and Malaysia could potentially benefit from it", he said.

The yuan was quoted at 6.297 per US dollar, 0.25 percent firmer than the previous close of 6.3126. Trump also directed the US Agriculture Department on Monday to look into other ways to protect US farmers from China's tariffs.

Xi did not directly address the trade dispute in his speech.

However it added a full-blown trade war "would have a more pronounced effect".

US crude rose 2.82 percent to $65.21 per barrel and Brent was last at $70.68, up 2.96 percent on the day.

Chinese Vice Premier Liu He promised at the World Economic Forum in January that China would roll out fresh market openings this year, and that it would lower auto import tariffs in an "orderly way". China's plan to more than triple tariffs on soybean imports to 35 percent will be among the most impactful on Missouri farmers, along with its new 15 percent tariff on pork imports and 25 percent tariff on cotton.

Other reports by AllAboutTopnews

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