Asian, European stocks plunge as China-US trade war fears brew

Andrew Cummings
June 19, 2018

The move comes just three days after the president detailed an initial $50 billion in imports that would be taxed an additional 25 percent, which he said was punishment for the theft of intellectual property from USA companies, as well as the trade gap between the two countries.

Pompeo raised the trade issue directly with China last week, when he met in Beijing with President Xi Jinping and others.

"The United States has initiated a trade war and violated market regulations, and is harming the interests of not just the people of China and the USA, but of the world", the ministry said.

But, he said, "the United States will no longer be taken advantage of on trade by China and other countries in the world".

Frankfurt was the heaviest faller among leading European indices, shedding 1.4 percent in late morning deals, which followed a drop of 3.8 percent for Shanghai.


"If the United States 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".

As tensions continue to escalate between the United States and China over a USA plan to tax $50 billion in Chinese products, Apple is concerned that China's government will create regulatory and shipping hurdles for its products, The New York Times reports today.

That has prompted Mr Trump to up the ante once more in what he regards as an unfair balance in trade between the two superpowers.

Some companies have reported Beijing is meeting with Chinese businesses to discuss shifting contracts for usa goods and services to suppliers from Europe or Japan, or to local Chinese firms, Parker said. That would encompass roughly 90 percent of the $505 billion worth of goods that China exported to the United States in 2017.

The China trade offensive is only one side of Trump's multi-front battle with the United States' economic partners as he presses ahead with his protectionist "America First" agenda. The tariffs were quickly matched by China on US exports, a move that drew the president's ire.


In April, the Trump administration outlined around 1,300 products worth $50 billion that would be hit with proposed tariffs.

With the world's two largest economies on the brink of a full-fledged confrontation, spooking markets and worrying business leaders, Trump on Monday said he was pushing forward with fresh punitive measures over Beijing's "unacceptable" move to raise its own tariffs. S&P 500 futures were off 1 percent and Dow Jones futures were 1.1 percent lower.

Initially, 545 United States products valued at $34 billion will be targeted by China, mimicking the Trump administration's tariff rollout.

"Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship". 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. It's unclear when the list will be made public.


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