USA stocks dip as Trump talks of more tariffs on China

USA stocks dip as Trump talks of more tariffs on China

US President Donald Trump says he is ready to impose tariffs on an additional US$500 billion (S$684 billion) of imports from China, threatening to escalate the current trade clash with the Asian nation.

Business Insider points to a report from Chinese publication Global Times claiming that Chinese textile manufacturers that produce Trump gear are having greater trouble getting their goods into the United States thanks to the current trade war between the US and China.

Washington has since threatened tariffs on another $200 billion in Chinese exports, prompting Beijing to vow further retaliation.

According to U.S. data, China imported only US$130 billion of United States goods, meaning that Beijing would eventually have to resort to non-tariff measures. But his remarks to CNBC caught financial markets by surprise Friday. Meanwhile, both Enbridge and TransCanada saw losses of more than 2 per cent, surrendering some of their gains on Thursday, when a US regulatory decision inspired thoughts that the taxation on USA pipelines would be eased. That "could destroy market tension and volatility and drive a gap higher in risk sentiment", he said.

The dispute between the world's two largest economies stems from accusations that China steals technology from US companies or forces them to hand over technology to Chinese companies as well as differences over the USA trade deficit with China.

President Donald Trump on Friday launched a fresh attack on American trading partners, saying the European Union and China were manipulating their currencies, and he threatened to hit all imports from China with high tariffs.

Steep tariffs already are in place on $34 billion in Chinese goods, and a second tranche of $16 billion in products is under review and could soon be added.

India scraps tampon tax after campaign
He said, besides revenue collection, the GST council will now focus on job creation as well. Sanitary pads were taxed at 12 percent under the GST , which was launched a year ago.

Last week, the Trump administration also identified a further $200bn in Chinese goods it may target for tariffs, for a total of $250bn. But in the CNBC interview, the president said he was seeking to do only what's fair.

"We're down a tremendous amount", Mr Trump said in an interview about trade imbalances with China on CNBC. "We've been ripped off by China for a long time". While both the Chinese and United States economies remain strong, a crash in the USA stock market, especially at a time when interest rates have pushed the Dollar higher, could result in a dramatic change of fortune for the U.S. if the current atmosphere of caution vis-a-vis China is not reversed from the American side. But such a maneuver could also spur an outflow of capital that Beijing has tried to stanch.

His comments did not help to push the dollar down versus the yuan, however. On Thursday, it surprised investors by guiding the yuan lower.

With trade tensions rising, so is the pushback from American business that fear potentially devastating consequences, not only from China but also from Europe, Canada and other countries in Asia. Overall, hawkish testimony from Fed Chair Jerome Powell and negatively-viewed comments from U.S. President Trump seemed to be the main catalysts driving a few of the markets in two directions.

The Chinese state media, from the official Xinhua news agency to Global Times, did not cover Trump's fresh threat, and an opinion piece published by People's Daily on Saturday did not include the potential US$500 billion tariffs.

"Automobiles - that's the 800-pound gorilla", Brookings' Dollar said.

On Twitter, Trump also accused China and the European Union of manipulating their currencies to promote their exports at the expense of the USA, and criticised the Fed for raising interest rates.

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