China will counterattack USA tariffs

Relations have soured between US President Donald Trump’s administration and that of Chinese President Xi Jinping since they met in Beijing last year sparking fears of an all-out trade war

The rapid tit for tat follows weeks of anxious anticipation over the "trade remedies" President Trump vowed last month to implement. The EU has said it will impose its own tariffs of about $US300 billion on USA imports if he follows through. "But Trump obviously wants us to lose this partner".

But Shaun Rein, founder of China Market Research Group and author of the book "The War for China's Wallet", told us he has a different take on this situation. As promised, Beijing hastily reiterated with duties on $34 billion worth of USA goods.

After that, the hostilities could intensify: Trump said the U.S.is ready to target an additional $200 billion in Chinese imports - and then $300 billion more - if Beijing does not yield to US demands and continues to retaliate.

Prices are rising, especially for steel and aluminium, and companies are starting to feel reticent about investments or planning to shift production overseas to avoid retaliation against USA exports. Trump has continued to threaten Beijing with escalating tariffs on as much as $450 billion worth of Chinese goods.

Asian stocks were on shaky ground on Wednesday while the Chinese yuan stood near 11-month lows as the spectre of a Sino-U.S. trade war haunted investors ahead of an end-of-week deadline for U.S. tariffs on billions of dollars worth of Chinese imports. US stocks edged higher on Thursday, lifted by technology shares, amid hopes that American trade tensions with Europe may ease after German Chancellor Angela Merkel said she would back a reduction of European vehicle tariffs if Washington abandons its threatened higher auto levies.

A final option for China is that it could entice North Korea to take actions that would be beneficial to China, but risk the fragile peace being sought on the Korean Peninsula.

Shuqing Guo, head of China's banking and insurance regulator, said that a trade war would not affect China's own reforms and opening up, adding, "The progress of China's economy can not be reversed by any force". "We think trade works for the American economy and tariffs don't". This fear drove some of the largest single day point swings in the USA markets during the quarter; there were many days with trading ranges spanning more than 400 points on the Dow.

US crude rose 0.2 percent at $73.08 a barrel. Tax reform benefits and the continued resilience of the USA consumer seemed to be the main driving force behind the positive earnings numbers, which are expected to carry on into the second (18.9 percent growth expected) and third (17 percent growth expected) quarters as well. Seoul's Kospi index .ks11 edged up 0.2 percent. Stocks have been volatile, the dollar has gained and the yield curve for US Treasuries has flattened.

But beyond those specifically targeted effects, consumers nearly always feel some pain.

The impact is already being felt in the markets.

Na eases to five-shot PGA Tour victory
He sank a five-foot birdie putt at the fourth and one twice as long at the fifth before dropping a 32-footer at the sixth. Kraft birdied the last for an even par 70 and solo second place ahead of compatriots Brandt Snedeker and Jason Kokrak.

How to watch England vs Croatia tonight
They worked in '98 and we worked today, we reached out target to get to the final. France lost the Euro 2016 final to Portugal. "We must take advantage of it now".

Babies should be fed solid food from just 3 MONTHS
Do you think solids help a baby to sleep better? Babies who sleep more may wind up consuming less breast milk, he added. Currently, The World Health Organization recommends exclusive breastfeeding for six months.

Trump didn't back down, but rather raised the stakes with the threat of even more tariffs on China.

"Bullying and threatening will lead to nowhere".

The factory also made flags for the campaigns of both Trump and Hillary Clinton in 2016.

Jean-Yves Le Drian told France's RTL radio the policy could affect global growth and that pressure should be brought on the U.S.to avoid descending into an all-out trade war. The tariffs have been in place on most other countries since March. The price of oil continued to increase with prices crossing over the psychological $70 per barrel level.

The trade spat with China is part of the president's broader plan to renegotiate American trade deals with other countries. That's because the economy is one area where Trump is doing well with voters.

Weibo users offered encouragement and support to the cargo, which left Seattle on June 8, as it became uncertain whether the ship would dock and unload its cargo before noon on Friday when the new tariffs took effect.

China sources a lot of components that go into its finished goods from these other countries. "It's unlikely to mark a systemic change". Trade wars will continue to be the primary focal point of the markets as they are likely to heat up until they reach a boiling point.

The dollar and USA treasuries have also been sensitive. -China economic relationship had grown to be "no longer sustainable".

Couple that with further potential rate hikes from the FOMC and the Fed could in theory invert the yield curve itself.

Related news:

Hot News

isis-killer-beheading-video-story-top European Space Agency Taps Airbus for Mars Sample Return Mission
Jul 11, 2018 - 20:21
Airbus in Stevenage, England will design a rover aimed at collecting Martian soil samples and returning them to Earth. Fetch will then return to its lander, which has a cylinder attached to it that contains a Mars Ascent Vehicle.

isis-killer-beheading-video-story-top Cardi B Countersues Former Manager For $15 Million
Jul 11, 2018 - 20:11
Cardi's legal team also claims that Raphael's companies, KSR and WorldStar, failed to give Cardi B a full accounting of her funds. TMZ reports that the counter-suit accuses Raphael of trying to dictate who she "should and should not see romantically".

isis-killer-beheading-video-story-top England bask in World Cup glow
Jul 11, 2018 - 20:05
Check out the brand new daily JOE World Cup Minipod hosted by Dion Fanning and Paddy McKenna. "The dream goes on! Controlled the game.

isis-killer-beheading-video-story-top Russell Knox wins Irish Open after monstrous playoff putt
Jul 11, 2018 - 20:00
The New Zealander had that putt for the title but missed on the high side and the pair were left to go back up the last. I've done it before in the USA on the last hole, 12 feet.

isis-killer-beheading-video-story-top Photo of DJI's upcoming Mavic 2 leaked online hints at swappable cameras
Jul 11, 2018 - 19:41
DroneDJ says it received a photo from a tipster showing what's allegedly a new model that hasn't been announced yet - the Mavic 2. A closer look at the alleged DJI Mavic 2 photo revealed that it looked like a sleeker and more aerodynamic DJI Mavic Pro.

isis-killer-beheading-video-story-top Sanctions have turned into opportunity: Iran's defense chief
Jul 11, 2018 - 19:28
The US has told India and other countries to cut oil imports from the Gulf nation to "zero" by November 4 or face sanctions. Iran supplied 18.4 million tonnes of crude oil during April 2017 and January 2018 (first 10 months of 2017-18 fiscal).

isis-killer-beheading-video-story-top May stares down Brexit plan backlash as ministers quit
Jul 11, 2018 - 19:12
Mr Fabricant lauded Mrs May's Brexit plan as a "pragmatic compromise". "As an ardent Brexiteer, I go for the former". May named one of her most loyal ministers, Jeremy Hunt, to replace Johnson in the job of Britain's top diplomat.

isis-killer-beheading-video-story-top World's oldest colours shed light on mystery of life on Earth
Jul 11, 2018 - 18:56
Other recent studies, however, indicate that there was enough oxygen around for 1 billion years before complex life emerged . The first animals, which are either sponges or some sort of comb jelly , didn't appear until roughly 600 million years ago.

isis-killer-beheading-video-story-top ‘World’s Ugliest Dog’ Zsa Zsa dies at 9 years old
Jul 11, 2018 - 17:36
Brainard described the dog's death as "devastating" in an interview with Today .com, which first reported the news. Zsa Zsa , the English bulldog from Minnesota that captured hearts as the cutest World's Ugliest Dog , has died.

isis-killer-beheading-video-story-top Meghan and Harry Help Honor Royal Air Force
Jul 11, 2018 - 16:29
Wickstead should also feel relieved that Markle wore her hair down, in loose waves, after criticising her wedding hairstyle, too. As they stood outside the Marlborough House, Meghan affectionately touched Harry's hand, as the pair appeared to share a joke.

isis-killer-beheading-video-story-top Young Kim shatters LPGA scoring records
Jul 11, 2018 - 15:47
During her first season on the LPGA Tour, Kim won three tournaments to earn the Tour's Rookie of the Year award. That victory had propelled her to eighth in the world, although she had slipped to 26th coming into this week.

isis-killer-beheading-video-story-top Iran oil minister: No change in production, export
Jul 11, 2018 - 15:40
Iran, OPEC's third-largest producer, is facing USA sanctions on its oil exports that are prompting some buyers to cut purchases. Besides, the anti-Iran efforts by the USA president are largely to blame for the high oil prices in global markets, he added.

isis-killer-beheading-video-story-top Wales unveil Warren Gatland's replacement
Jul 11, 2018 - 14:55
The 55-year-old former Fiji boss will be the 23rd man to lead Wales since David Nash was appointed head coach in 1967. Gatland steps down after the 2019 World Cup and fellow New Zealander Pivac has always been touted as his successor.

isis-killer-beheading-video-story-top Germany ‘totally controlled’ by Russia, Trump claims as fraught NATO summit begins
Jul 11, 2018 - 14:42
The project is opposed by the USA and some European Union members. "Just doesn't work!" he tweeted as he arrived in Brussels . Of Nato's 29 members , just five meet that target this year: the US, Greece, Estonia, the United Kingdom and Latvia.

isis-killer-beheading-video-story-top Fakhar Zaman terms PSL as game changer
Jul 11, 2018 - 14:22
It's a career-best number for him, his first time in the Top 10, with 690 points, also a career high. Speaking exclusively to Geo.tv, Fakhar said PSL played an important part in growing him as a player.