Amid Trade War, Donald Trump Says US "Rebuilt" China

Amid Trade War, Donald Trump Says US

Apple is also concerned that the Chinese government will point to the way that Huawei has been accused of being a threat to USA national security, and take some type of action against Apple.

China will fight back firmly with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods, the commerce ministry said, accusing the USA of initiating a trade war.

Although Mr. Trump's audience applauded his comments on tariffs at the annual National Federation of Independent Business conference, the renewed trade hostilities between Washington and Beijing are spooking many sectors of the USA economy, from Wall Street to the agricultural heartland.

Asian stock markets fell following Trump's announcement.

Hong Kong's Hang Seng Index (HSI) closed down 2.76 percent, while Japan's Nikkei lost 1.77 percent and Korea's Kospi Index down 1.54 percent.

In overseas trading, Germany's DAX was down 1.3 percent and France's CAC 40 fell 1.3 percent. The president said the new tariffs would affect $200 billion dollars in goods. In a forceful statement, it said Beijing was ready to "defend the interests of the Chinese people and enterprises".

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He noted that China's Ministry of Commerce has already promised to retaliate with "comprehensive quantitative and qualitative measures" if the US imposes more tariffs.

The president earlier ordered 25 percent tariffs on $50 billion in Chinese goods as punishment for Beijing's forced transfer of us technology on companies doing business in China, and for intellectual property theft.

The President has said that he had ordered US Trade Representative Robert Lighthizer to identify a second tranche of goods imported from China for tariffs of 10 per cent.

China was not specific about the tariffs, but likely it will be as a means to raise alarm in the United States. But Intel shares dropped 3.4 percent to $53.22 on Monday on news of a stock downgrade and investor concerns over tariffs. Russian Federation has calculated the damage of its proposed tariffs to be about $537.6 million, while Oreshkin said Tuesday that the first stage of tariffs against the USA would amount to about $93 million.

"Just about every major information and communication technology product was exempted", one USA industry told Reuters.

At a news conference in Mexico City, Mexican foreign minister Luis Videgaray said he expected the next negotiating meeting of ministers to be held in July.

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American corporate giants that rely on huge revenues from business in China, such as Boeing, Caterpillar, Intel and 3M, are among the biggest losers on the Dow. As a result, the Russian minister, Maxim Oreshkin, said Moscow would assert its rights as guaranteed by the World Trade Organization (WTO) to retaliate with duties against US imports.

Until now, China has mirrored Trump's actions, matching Friday's tariff hike with identical charges on the same amount of imports. China is retaliating by raising import duties on $34 billion worth of American goods, including soybeans, electric cars and whiskey.

The risk of "a more meaningful impact on global trade and growth have increased", said Morgan Stanley economists in a report.

The declines came after a series of moves escalating the brewing trade war between the United States and China, the world's two largest economies.

Beijing has offered to narrow its politically volatile trade surplus with the United States but has resisted changing development plans its leaders see as a path to prosperity and to restoring China's rightful role as a global leader.

Trump also pointed to a news article about Canadians smuggling in American goods. It has yet to say when that might take effect. Among others, Marios is delivering weekly trading webinars. But Trump has been unusually direct about threatening to disrupt such a large volume of Chinese exports.

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