Economy

China to impose tariffs on $60 billion of USA goods

China to impose tariffs on $60 billion of USA goods”

Donald Trump is now willing to put Wall Street at risk if it means winning over Main Street. In terms of the trade war itself, negotiations will continue as China will press for a win-win agreement in spite of the fact that Trump has publically claimed that he enjoys the gamesmanship element of the trade war. Chipmakers were among the biggest decliners. Apple also took heavy losses, tumbling 5.8%.

Bank of America strategist Athanasios Vamvakidis said: "This is a clear escalation of trade tensions in our view, and against our baseline that cool heads would prevail and the worst would be avoided".

In the short term, the US insistence on a protectionist mentality will highlight the importance of the Belt and Road Initiative (BRI) to Asian, Latin American and African countries.

The Dow dove 617.38 points, or 2.4%, to 25,324.99. "China trade negotiations and concern that it's really deteriorating pretty significantly and that's impacting all areas of markets", said Kristina Hooper, chief global market strategist at Invesco in NY. The broad index is still up 14.9% for the year.

China's finance ministry said it plans to set import tariffs ranging from 5 percent to 25 percent on a target list worth about $60 billion. It is the threat to impose tariffs on the $300 billion or so remaining imports from China that cause the greatest concerns. The United States announced last week it would increase tariffs on US$200-billion of Chinese imports. The price of soybeans slid 0.8% to $8.04 a bushel.

In the US, decades of regulatory burdens that reached new heights after 2008 have been slashed by Trump.

Analysts have said investors should prepare for a more volatile stock market while the trade dispute deepens. "Both sides will pay in these things".

"Investors are trying to figure out how much of the rally that we had this year was perhaps celebrating prematurely hopes of a trade deal". Chipmakers Microchip Technology dropped 6.3% and Advanced Micro Devices lost 6.2%.

Some of the biggest chipmakers in the US lean heavily on China for their sales, making them particularly vulnerable to the worsening tensions between the two countries.

More news: Top Indian drug makers accused of fixing prices

President Donald Trump said on Twitter over the weekend that "We are right where we want to be with China".

Bank stocks also fell sharply. Eastern Time. Boeing and Caterpillar fell the most in the Dow. The yield on the 10-year Treasury fell to 2.39% from 2.45% late Friday.

Taking into account all current tariffs, and all threatened tariffs - from both the U.S. and foreign countries - the Tax Foundation found that long-run U.S. GDP would be reduced by 0.75 percent - or $187.9 billion - offsetting almost 50 percent of the benefits that the group expected to result from the Tax Cuts and Jobs Act.

Investors have so far made it through the bulk of first quarter corporate earnings reports in decent shape. The results so far show less than a 1% drop in profit.

Elsewhere in the market, generic drug developers are sinking after many of them were accused of artificially inflating and manipulating prices. The lawsuit from attorneys general in more than 40 states alleges that for many years the makers of generic drugs worked together to fix prices.

Teva, which was specifically mentioned, sank 14.8%. The stock had priced at $45 at its initial public offering. It closed at $37.10. Gold, however, bucked that trend as it reacted as a safe haven asset and gained 1%, a total of $12.90 and is now fixed at $1300.40 an ounce.

Energy futures finished mostly lower.

That could all change if a U.S. Brent crude, the worldwide standard, gained 24 cents to $70.86 per barrel.



Like this

loading...
loading...

Latest


14 May 2019
Game Of Thrones Fans React To That Daenerys Twist
Cersei had said in the past that they came into the world together and would leave together. There was a great sense of grief and an enormous amount of gratitude going on'.

13 May 2019
Legendary American actress and singer Doris Day dies aged 97
Terry Melcher , who died in 2004, became a songwriter and record producer, working with such stars as the Beach Boys. As the 1960s became more filled with experimental and alternative filmmaking styles, Doris Day's star began to dim.

13 May 2019
Salah talks historical CL comeback, final Premier League game
And so, while overcoming a 3-0 defeat against the mighty Barcelona was a daunting prospect, the fate was still in Liverpool's own hands.

13 May 2019
Michael Schumacher documentary to be released in December
The German then moved to Ferrari where he went on to dominate the sport before calling time on his career in 2006. Sabine Kehm, speaking for Schumacher's family, said his "outstanding career deserves to be celebrated".

13 May 2019
Elon Musk faces trial after calling British diver a paedophile
Wilson said in a footnote he has not found that reasonable jurors would "necessarily" view Musk's comments as factual. But the judge said Mr Musk was not communicating in "heated and volatile" settings that might explain any excesses.

13 May 2019
Sexton reflects on Champions Cup heartbreak with 'big regret'
For all of the merited highs, though, Saracens , who came from 10-0 behind to become the first English club to win three Champions Cups , will not rest here.

13 May 2019
Drugmaker will donate meds for feds' push to end HIV epidemic
Gilead has agreed to donate Truvada until the company's next-generation preventative HIV drug, Descovy, is available. Truvada has shown to cut the risk of HIV transmission by well over 90% (if used regularly) among such patients.

13 May 2019
Barges and oil tanker collide in Houston Ship Channel
After monitoring the air quality in the area, League City has determined that there are no harmful chemicals in the air. An estimated 25,000 barrels of gasoline blend stock were loaded on each barge, a Coast Guard statement said.

13 May 2019
Supreme Court rules that consumers can sue Apple for App Store practices
They were supported by 30 state attorneys general, including from Texas, California and NY . Apple's store is far from the only one that takes a cut from developers.

13 May 2019
Pakistan to get $6bn from International Monetary Fund over the next three years
The Pakistani government has received financial aid from Saudi Arabia and the United Arab Emirates. However, Pakistan had no choice but to concede to the IMF's demands to secure the loan.