Home » Money

US Protectionist Stance Brings Fears of Trade War Back

24 March, 2018, 14:14 | Author: Melinda Barton
  • European stocks dive as Trump's trade war frightens investors

Spot gold was up 0.8% at $1,339.33 US per ounce early Friday morning.

Trump's crackdown on China came shortly after US Trade Representative Robert Lighthizer announced that more countries will be exemptfrom the steel and aluminum tariffs that Trump announced three weeks ago.

After Trump confirmed plans for $60 billion of China trade tariffs, China countered with its own list of proposed sanctions on U.S. imports, escalating fears of a global trade war.

"China would fight to the end to defend its own legitimate interests with all necessary measures", China's embassy in Washington said in a statement late Thursday.

The Shanghai Composite index closed down 3.6 percent at 3,152.76 points, its lowest close since Feb 9.

Major indices had their biggest one-day drop since February 8 on Thursday.

WH Group, the world's largest producer of pork after the takeover of Smithfields Foods by China's Shuanhui global in 2013, was among the worst performers on Hong Kong's Hang Seng index, falling up to 10 percent following the news of the intended tariffs.

Indicating that they would retaliate against tariffs announced by President Donald Trump.

In a separate note on Friday, the UBS chief investment office said it saw a 20 to 30 percent probability of "damaging retaliation" by China to US trade actions. Meanwhile, business groups representing companies ranging from Walmart Inc.to Amazon.com Inc. are warning U.S. tariffs could raise prices for consumers and sideswipe stock prices.


For the short-term, analysts expect soured sentiment for equity markets, though many saw a limited impact.

The Chinese government could also target USA technology companies that manufacture products in China, such as Apple, in the hope those firms would pressure Washington to back down, said Victor Shih, a professor of political economy at University of California, San Diego.

Commodities did not fare well, either. Tencent fell more than 4 percent after Naspers Ltd. revealed a plan to cut its stake in the Chinese internet giant.

Global stocks have plummeted as fears rise that the confrontation could provoke a damaging trade war. "We have a tremendous intellectual property theft situation going on" with China affecting hundreds of billions of dollars in trade each year, he said.

Oil futures rallied. Benchmark U.S. crude rose 95 cents to $65.27 a barrel in electronic trading on the New York Mercantile Exchange.

That is because millions of tonnes of cheap Chinese steel would still be on the market even if trade tariffs did make it unviable in the US.

The dollar eased against a basket of currencies on Friday as trade concerns triggered a bout of investor risk aversion. China imports almost $14.2 billion worth of soybeans every year.

"This has been long in the making", Trump said, adding that the tariffs could affect as much as $60 billion in goods.

"As there is no prospect of an easing in the U.S". China's Commerce Ministry said the USA had set a "very bad precedent" while the Foreign Ministry called the United States to make "rational and prudent decisions".

Recommended:

  • It's about time the NRA's influence waned, by Leo Sandy

    It's about time the NRA's influence waned, by Leo Sandy

    What we need is to expand universal background checks for gun sales and to ban the sale of semi-automatic assault style rifles. Perpetrators know these laws as well and also know those institutions would be an easy take because no one is armed.
    Trump Readies a Hefty Penalty on China

    Trump Readies a Hefty Penalty on China

    Meanwhile, China's Premier Li Keqiang said yesterday that there will be no victor from any trade war between China and the United States , and that he hopes both sides can remain "calm".
    Yakuza Kiwami 2 Coming To The West For PS4

    Yakuza Kiwami 2 Coming To The West For PS4

    But now, fans in other parts of the world will have a chance to enjoy the revamped visuals and graphics of the original Yakuza 2 . The localization has also been reworked, so it's "the most faithful representation of the original Japanese", according to Sega .
  • Trump congratulates Putin and announces coming summit; Republicans furious

    Trump congratulates Putin and announces coming summit; Republicans furious

    The former KGB agent won reelection to a fourth term on Sunday as opposition groups raised questions about voting irregularities. The statement says they also expressed satisfaction with the apparent easing of tensions over North Korea's weapons program.
    Gingrich Urges Trump to Stop Tweeting About Mueller

    Gingrich Urges Trump to Stop Tweeting About Mueller

    Congressional leaders are putting the final touches on a $1.3 trillion spending bill that will pass Congress in the coming days. Ryan said the investigation should be allowed to continue out of respect to the rule of law - and said he's "confident" Mr.
    Look! 'Black Panther' Tops The Box Office For The 5th Weekend Straight

    Look! 'Black Panther' Tops The Box Office For The 5th Weekend Straight

    Last but not least this weekend is " I Can Only Imagine ", bringing in a better-than-expected $17 million in its first week out. The superhero flick was the number one movie at the North American box office bringing in $27 million this past weekend.
  • France shooting: Partner of attacker detained

    France shooting: Partner of attacker detained

    Not one year later, ISIS claimed responsibility for a truck ramming that killed 86 people celebrating Bastille Day in Nice. He is one of the hero of France. "He is now fighting for his life and all our thoughts go out to him and his family".
    US Could Impose New Tariffs on China This Week

    US Could Impose New Tariffs on China This Week

    Congress to plead Brazil's case, said he is "confident" that ultimately the country will be spared the U.S. tariffs. Trump followed through on threatened steel and aluminum tariffs, but then allowed countries to seek waivers.
    Supreme Court dismisses GOP challenge of Pennsylvania voting map

    Supreme Court dismisses GOP challenge of Pennsylvania voting map

    Democrats will control six, assuming that Conor Lamb's victory in the 18th district special election stands. Monday afternoon, republican lawmakers looking to stop the new map received a "double dose" of defeat.
  • Snags in 2 IndiGo A320 Neo aircraft on Sunday, 1 grounded

    Snags in 2 IndiGo A320 Neo aircraft on Sunday, 1 grounded

    However, during engine start, the Pilot-in-Command observed a hydraulic (not oil) leakage from #2 engine. As far as market share is concerned, IndiGo continued to dominate in February with a 39.9% share.
    Gunman Dead After 2 Students Injured In Maryland High School Shooting

    Gunman Dead After 2 Students Injured In Maryland High School Shooting

    On Saturday, March 24, students will take part in the March for Our Lives in Washington, DC, to protest gun violence in America. A 2017 Xavier University study said 51 percent of schools had resource officers by 2014 - up from 13 percent in 1993.
    Messi scores again as Barca beat Athletic, Leganes beat Sevilla

    Messi scores again as Barca beat Athletic, Leganes beat Sevilla

    Barcelona's march to the La Liga title continued with another win at the Camp Nou against Athletic Bilbao . It will be a very special match for me.


Popular

Trump Doubles Down on Signing Budget Bill for 'National Security'
That would include Aguilar's own bipartisan legislation, which he co-sponsored with Texas Republican Will Hurd in January. The era of trillion-dollar budget deficits is about make a comeback _ and a brewing budget deal hastened the arrival.

Winning Powerball Ticket Sold In Lancaster County
In addition to the jackpot victor , three other tickets sold across the country matched five numbers, but not the Powerball . The Pennsylvania Lottery requires winners to be named to ensure that the system operates with "integrity and transparency".

WhatsApp Co-Founder Says, 'It is time #deletefacebook'
The reason behind Acton's tweet is as yet unexplained, but this is not the first time when he has tweeted or spoken on Facebook . The co-founder of WhatsApp has joined the chorus of voices against social media giant Facebook .

Trump Congratulates Putin On Totally Expected Victory In Russian Election
President Trump's eagerness to meet with Russian Federation in the near future comes at a tense time between the two nations.

McCain Blasts Trump for Congratulating Putin on Election Win
US President Donald Trump has congratulated Vladimir Putin on his win in Sunday's presidential election in Russian Federation . John McCain released a biting statement accusing Trump of 'congratulating dictators on winning sham elections'.

WR Allen Hurns to visit Jets on Wednesday
Quincy Enunwa, Jermaine Kearse, Robby Anderson , ArDarius Stewart and Chad Hansen are all returning for the Jets this season. In 2015, Hurns started 15 games while recording 64 receptions for 1,031 receiving yards and 10 touchdowns.

Promo Released For Next Week's Legends of Tomorrow
The CW has promoted Matt Ryan , who plays occult expect John Constantine , to a series regular on Legends for the fourth season. The sneak peek for his arrival is enough to excite any DC Comics fan and builds more anticipation for his animated series.

Donald Trump Jr. Reportedly Had A 2011 Affair With Aubrey O'Day
It didn't take long after this news bit dropped for the internet to unearth O'Day's 2013 nuance-free breakup song named "DTJ". Of course she was going to be attracted to someone like Trump Jr, who was serving as an "advisor" on the show at the time.

Indians kidnapped by ISIS, killed in Iraq
They were taken hostage by Islamic State militants when they took control of the second largest city in Iraq in 2014. He was the lone survivor among 40 Indians abducted by Islamic State militants from Mosul, Iraq in June 2014.

Nindies Direct 2018 just announced three ideal games for Nintendo Switch
The fighting game can be played in local or online multiplayer modes, and has been in Steam Early Access since September 2017 . In Speedrun Mode, players can race their friends or even the fastest players in the world to place on the online leaderboards.