Trade War U.S.

China is being forced to retaliate against the United States in their trade dispute, and U.S. exporters including suppliers of liquefied natural gas would “certainly” be hurt, said Chinese vice commerce minister Wang Shouwen.

StockMarketNews.Today – The United States and China imposed fresh tariffs on each other’s goods on Monday as the world’s two biggest economies showed no signs of backing down from an increasingly bitter trade dispute that is expected to hit global economic growth.

China’s stock indices are lower and European stocks are trading cautiously as investors measure comments from the White House signalling that trade talks between Washington and Beijing are stalled.

StockMarketNews.Today – Stocks lose momentum as investors assess trade talks deadlock
Trump adviser blames Xi Jinping for stalled negotiations over tit-for-tat tariffs.
National Economic Council director Larry Kudlow said China could “end” the “tit-for-tat business” by reducing tariffs and allowing American ownership of companies in China.

President Donald Trump is already threatening additional rounds of tariffs, possibly targeting more than $500 billion worth of Chinese goods – roughly the total amount of U.S. imports from China last year.

StockMarketNews.Today – It will take weeks or months for the U.S. Trade Representative to review and possibly activate any new rounds of punishment.
China’s commerce ministry said it was forced to retaliate, meaning imported U.S. goods also faced 25 percent tariffs.

Donald Trump’s administration on Friday imposed new tariffs on $34bn of imports from China as the US president threatened to extend levies to all $500bn of Chinese goods, the biggest shot so far in the trade war between the world’s two largest economies.

StockMarketNews.Today – Mr Trump’s comments during a visit to the state of Montana — coming only hours before US customs officials began collecting 25 per cent tariffs on 818 different Chinese products from midnight Washington time on Thursday — highlighted the escalating economic consequences of the trade fight between the US and China.

Asia-Pacific equities were broadly down on Thursday as investors looked towards the looming implementation of tariffs.

StockMarketNews.Today – US markets were closed on Wednesday for the Independence Day holiday, but in Europe the pan-European Stoxx 600 index ended the session fractionally higher while the FTSE 100 fell 0.3 per cent in London.

China-focused stocks took the brunt of the damage. Hong Kong equities were once again lower with a drop of 0.9 per cent by the Hang Seng index. The Hang Seng China Enterprises index, which tracks large-cap Chinese companies, dipped 1.7 per cent.

China’s stock market remains under pressure and European stocks are drifting as investors continue to watch for signs that the trade dispute between China and the US could be influencing China’s policy on its currency.

What you need to know:
Equities lower as trade fears persist.
European tech stocks track losses for the sector overnight on Wall Street.
Renminbi moves further up off lows as attention stays on China’s currency policy.
Chinese stock indices stay under more pressure than their peers.
Sterling bounces up after reassuring services sector economic data.

Leading quote
“Possible trade wars are just another worry on top of other existing global economic problems, but the expectation of recession is usually necessary for a bear market to occur and we don’t believe that is about to happen,” says Jane Sydenham, investment director at Rathbones.