Daily Trends Now
Daily Trends Now

Timeline Of Escalating United States-China Trade Tensions

Timeline Of Escalating United States-China Trade Tensions

China on Wednesday hit back at President Donald Trump's plan to impose tariffs on $50 billion in Chinese goods by proposing additional tariffs of 25 percent on 106 categories of USA imports including soybeans, autos, chemicals and some types of aircraft.

A MOC spokesperson made the statement after the US administration announced a proposed list of products subject to additional tariffs, which covers Chinese exports worth 50 billion USA dollars with a suggested tariff rate of 25 percent.

"T$3 hat war was lost many years ago by the foolish, or incompetent, people who represented the U.S. Now we have a Trade Deficit of $500 Billion a year, with Intellectual Property Theft of another $300 Billion".

President Moon Jae-in said growing trade protectionism and trade conflict between the USA and China could hurt the Korean economy, and he urged the country to prepare.

The statement followed China's pledge to impose tariffs on almost $50 billion in imports from the US. Among big technology shares, Facebook was down 1.7 percent. Regulators use access to China's vast market as leverage to press foreign automakers and other companies to help create or improve industries and technology.

China did not say when the tariffs would take effect.

Beijing said it "strongly condemns and firmly opposes" the proposed USA tariffs, calling them "unilateralistic and protectionist", and vowing to retaliate.

Benchmark issuer Germany's Bund yield hovered just under 0.50 per cent, and just off 2-1/2 month lows hit last week.

The broad-based S&P 500 gained 30.25 points (1.16 per cent) to 2,644.69, while the tech-rich Nasdaq Composite Index jumped 100.83 points (1.45 per cent) to 7,042.11. In 1.14pm trading, the Standard & Poor's 500 Index retreated 0.2 percent.

The FTSE index in London closed up 0.05 percent, while the DAX closed down 0.37 percent and France's CAC 40 index fell 0.2 percent.

The biggest worry for investors is that an escalating trade war will derail a global economy that is largely growing in unison.

The market bulls will be hoping that China's latest move will force the U.S administration into pulling back from its plans and, when considering the fact that China was the largest buyer of U.S paper in 2017, the U.S government's need for funding this year will add further pressure on the Dollar and U.S government funding should Trump stand firm.

After a big early loss, US crude dipped 14 cents to $63.37 a barrel in NY while Brent crude, used to price worldwide oils, fell 10 cents to $68.02 a barrel in London.

South Korea, Japan, and Taiwan could all lose out if the trade war results in Beijing changing its semiconductor suppliers.

Wholesale gasoline stayed at $1.98 a gallon. That's on top of duties announced last month, meaning that some forms of those products will face a 50 per cent fee to reach the US, further boosting prices for some products.

"You're going to have a lot of sectors of the USA economy in places that have been fairly supportive of the president where they will all the sudden start to feel some pain - and that's deliberate", says Phil Levy, senior fellow at the Chicago Council on Global Affairs.

Bond prices turned lower.

Farm equipment maker Deere lost $4.47, or 2.9 percent, to $148.57, after an early drop of 6.2 percent.

The swing in risk sentiment sucked some strength out of the dollar and put the pep back into bonds, with yields on U.S. 10-year Treasury debt down two basis points at 2.76 per cent.

The rising trade rhetoric saw the dollar buckle to ¥106.16, after edging up from a low of ¥105.70 on Tuesday. The euro rose to $1.2278 from $1.2267.


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