Markets Right Now: US stocks to open lower on trade tiff

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He called the move retaliation for Beijing's decision last weekend to raise tariffs on 50 billion dollars' worth of us products.

The United States has now imposed tariffs on up to $450bn in Chinese goods, out of a total of $500bn.

Aaron Padilla of the American Petroleum Institute (API) said the duties on U.S. steel imports imposed by the Trump Administration in March have increased costs for energy companies, as they buy products from China such as parts for offshore facilities.

Although this would indeed badly damage American companies, he says it would have the side benefit of flooding markets with cheaper goods - except in the United States, of course, where such goods would be hit with steep tariffs.

As analysts appearing on various US TV channels noted, so far, the US seems to have the upper hand in this trade war, Trump said he has already directed his legal team to start implementing the additional tariffs.

To respond to Trump's threat to impose tariffs on as much as $250 billion worth of Chinese goods, Beijing would have to find other ways to respond.

Economists are starting to warn that the tit-for-tat tariff threats between the United States and China, should they all be implemented, would meaningfully slow USA growth.

Companies like Apple are anxious China could cause delays in supply chains and increase scrutiny of products under the guise of national security concerns, The New York Times reported.

The White House has warned that if China goes through with its promise to retaliate against the U.S. tariffs announced last week, the United States will impose tariffs on an additional $200 billion worth of Chinese goods.

The White House has accused China of forcing USA companies to share advanced technology with Chinese partners as a condition of doing business there.

The Trump administration is using the threat of new tariffs after its efforts to deter Chinese intellectual property theft were met with retaliation from the Chinese government, according to The Associated Press.

The Commerce Ministry criticized Trump's order for new tariffs on $200-billion of Chinese goods as blackmail.

The Canadian government believes a deal to update NAFTA is still possible despite a USA move to impose tariffs on Canadian and Mexican steel and aluminum, Foreign Minister Chrystia Freeland said in Ottawa on Tuesday.

The dispute is part of broader USA complaints about global trading conditions that have prompted Trump to raise duties on steel, aluminum, washing machines or solar panels from Canada, Europe, Japan and South Korea.

Flags of US and China are placed for a meeting in Beijing on June 30, 2017. The Australian dollar, often seen as a proxy to China-related trades, shed 0.25 percent to $0.7404.

"If the USA acts irrationally and issues a list, China will have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures".

The US-China trade frictions escalated further over the weekend and we are unfortunately moving away from the "Grand Bargain" scenario towards the "trade war" scenario.

"One benefit of employing a CGE model is that it can model the effects of tariffs upon supply chains and this is crucial in regard to China, who have been termed the "Great Assembler". It's not easy but we're getting there", he told a group of USA small business executives.

WATCH: Freeland "strong, measured" retaliatory tariffs to be imposed on U.S.

By contrast, Palmer noted, the USA exported only about $130bn worth of products to China in 2017.

U.S. -CHINA TARIFFS: Tariffs mooted by the world's two biggest economies are set to take effect from July 6, bolstering fears of a trade war. "Again and again the US has been provoking a trade war".

Trump's former economic adviser, Gary Cohn, has warned that a continuing trade dispute could result in higher inflation and personal debt.

The small-cap Russell 2000 index, whose components are more domestically focused than large-cap companies, edged up 0.1 percent.