Trump renews trade criticisms of Mexico,…

Trump renews trade criticisms of Mexico,…

The move quickly drew praise from former Trump senior adviser Steve Bannon, who said: "President Trump told China and the world tonight that America will not back down when it comes to economic aggression". Here's what you need to know.

The Dow Jones industrial average fell almost 300 points on Tuesday as President Donald Trump threatened China with additional tariffs. Beijing has promised to respond with penalties of equal scale.

Still, Washington has shown no sign of backing off, and has also stepped up its rhetoric.

Global stock markets fell sharply on Tuesday after President Donald Trump threatened to impose an additional trade tariff on $200 billion worth of Chinese goods.

That sounds big. Is it?

The figures differ from those provided by Chinese customs, which showed China imported US$153.9 billion of U.S. goods and the United States purchased US$429.8 billion of Chinese products.

"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 with the United States", Trump said in a statement.

China imported US$129.89 billion of USA goods previous year, compared with U.S. purchases of US$505.47 billion of Chinese products, according to United States data. They also favored bonds. Last week, the US levied tariffs of 25 percent on $50 billion of Chinese goods.

China could allow its yuan currency to drift lower against the dollar, making U.S. goods more expensive and making Chinese exports cheaper.

What would that look like? South Korean goods were shunned when Beijing's ties with Seoul turned chilly a year ago after South Korea deployed the US-made Terminal High Altitude Area Defence (Thaad) anti-missile system despite Chinese objections.

The tariffs would start to slow US growth, economists warn.

Sixty-two percent of companies in all industries said they had less favorable market access in China than their Chinese competitors had in Europe.




"History shows that there are various other measures [China] could take to inflict pain on U.S. companies. including scaled up health, safety and tax checks, delaying the imports of goods, and boycotts", warned Louis Kuijs, the head of Asia economics at Oxford Economics.

Reduced Chinese access for U.S. businesses could be a boon to other foreign companies in a year when China says it will further open its door to overseas investors and firms.

And Beijing has other ways to inflict pain on American companies. Those tariffs were matched by China's threat to penalize on US exports, a move that drew the president's ire. USA officials argue that this program unfairly discriminates against US and other foreign companies operating in China.

But analysts say it's unclear which government will back down in the confrontation, predicting both economies will be able to withstand the initial waves of tariffs without much impact on overall growth.

Rising trade tensions also put new deals and investment at risk.

"Although many think this might be another bluff from Trump, markets are likely to stay nervous to trade-related headlines for now".

The United States imposed a trade embargo on China from 1950 to 1972.

"Let us not understate the macroeconomic impact [of the trade spat]", International Monetary Fund chief Christine Lagarde warned last week.

Beijing has offered to narrow its politically volatile trade surplus with the United States but has resisted changing development plans its leaders see as a path to prosperity and to restoring China's rightful role as a global leader.

The US continued to press China on trade issues on Tuesday.

On Tuesday, China's Foreign Ministry spokesman Geng Shuang said Pompeo's remarks "confuse right and wrong, and make groundless accusations against China".

Related Articles

  • How AMC Theatres plans to compete with MoviePass

    How AMC Theatres plans to compete with MoviePass

    Dubbed the " AMC Stubs A-List", the subscription service will cost $19.95 per month and kick off on June 26. MoviePass has been all over the news in recent months , but AMC might be trying to steal the spotlight.
    China fires back at US, raises own tariffs

    China fires back at US, raises own tariffs

    The agreement allows Washington to impose an additional $400 million fine or other penalties if ZTE violates the deal. US President Donald Trump gestures after arriving on Marine One at the White House in Washington, DC, on May 4, 2018.
    Fox News' Parent Company Feeling Repercussions From Immigration Coverage

    Fox News' Parent Company Feeling Repercussions From Immigration Coverage

    Over the weekend, " Family Guy " co-creator Seth MacFarlane said Fox News made him "embarrassed to work for this company". Modern Family is produced by the TV division of 20th Century Fox, which owns Fox News.
  • Southgate: I was really proud of the performance

    Southgate: I was really proud of the performance

    England continued to press and were made to pay for not converting a succession of chances when they conceded a soft penalty. England's World Cup campaign has begun, and the excitement around the team is beginning to build.
    Centurion Suarez strikes to send Uruguay and Russia through

    Centurion Suarez strikes to send Uruguay and Russia through

    They will face each other on Monday in Samara with first place in Group A on the line. "None of the games at the World Cup are easy to win", Suarez said.
    South Korea hoped Sweden couldn't tell Asians apart

    South Korea hoped Sweden couldn't tell Asians apart

    Aguilar had originally waved play on after South Korea substitute Kim Min-woo collided with Viktor Claesson in the area. Ola Toivonen headed wide from the resulting corner. "The pressure is on them", said the ebullient Granqvist.
  • Lakers Need More Pieces Than They Have To Land Kawhi

    Lakers Need More Pieces Than They Have To Land Kawhi

    The source suggested that the Spurs' decision to make public that Leonard was cleared to play essentially "hung him out to dry". For Brooklyn, bowing out of the Leonard sweepstakes and allowing other teams to duke it out is their best course of action.
    Starbucks to accelerate store closings next year

    Starbucks to accelerate store closings next year

    The chain is also relying on its digital initiatives to contribute between 1 and 2 percent to comparable sales next fiscal year. Management also plans to reduce the number of new licensed stores in 2019 by about 100 stores, according to CNBC .
    Nadal gets Le Mans started with Buemi leading from pole

    Nadal gets Le Mans started with Buemi leading from pole

    Alonso took the helm at the start of the race and put up a solid stint that put their vehicle in the lead by the 4 hour mark. A late fuel issue dropped the #7 auto off the lead lap so Kazuki took the chequered flag for the #8 with a lead of two laps.
  • Phoenix Suns: The pros and cons of drafting Luka Doncic No. 1

    Phoenix Suns: The pros and cons of drafting Luka Doncic No. 1

    As an NBA scout told NBA.com's David Aldridge: "If they use him the right way, it's going to be real hard for him to fail". Yes, as in the ultra-impressive Boston Celtics rookie that took the league by storm last season.
    There's A Good Reason Why Trippier Didn't Celebrate After Kane's Goal

    There's A Good Reason Why Trippier Didn't Celebrate After Kane's Goal

    England will hope to seal qualification to the knockout rounds when they face Panama at the Nizhny Novgorod Stadium on Sunday. Should England progress, they will face either Poland, Colombia, Senegal or Japan in the Round of 16. "He is rooting for me".
    'Wonder Woman 1984' Rumor Sheds Light on Pedro Pascal's Character

    'Wonder Woman 1984' Rumor Sheds Light on Pedro Pascal's Character

    She also flawlessly utilized the "woman gesturing not ok" (lol) emoji, mimicking her characters signature pose. And on Sunday Gal Gadot , 33, shared the first snaps of herself in character in Wonder Woman 1984 .