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Trump threatens new tariffs on Chinese imports

22 June 2018
Trump threatens new tariffs on Chinese imports

The declines weighed on the S&P industrials index, which fell 2.1 per cent, its biggest one-day percentage drop in almost two months.

The dollar index .DXY , which tracks the greenback against a basket of major currencies, was last up 0.24 percent at 95.02 after earlier reaching 95.296, its highest since last July.

Earlier, the Shanghai Composite Index .SSEC ended 3.8 percent lower after slumping almost 5 percent at one point to its lowest level since mid-2016.

Last week, he announced 25 percent tariffs on $50 billion in Chinese imports, prompting Beijing to retaliate with matching duties on U.S. goods.

A panel discussion involving Federal Reserve Chairman Jerome Powell, European Central Bank President Mario Draghi, Bank of Japan Governor Haruhiko Kuroda, and Reserve Bank of Australia Governor Philip Lowe may also attract some attention.

US stocks are mostly higher Wednesday as technology and media companies lead a recovery from the turbulent trading seen the day before. The Dow tumbled 287.26 points or 1.2 percent to 24,700.21, while the Nasdaq fell 21.44 points or 0.3 percent to 7,725.58 and the S&P 500 slid 11.18 points or 0.4 percent to 2,762.57.

Shares in supermarket Tesco, Britain's biggest retailer, meanwhile jumped 2.6 percent after the company reported solid first-quarter sales.

The report said housing starts spiked by 5.0 percent to an annual rate of 1.350 million in May after tumbling by 3.1 percent to a revised rate of 1.286 million in April. Companies would pay more for imported parts and would have to decide whether to absorb those higher costs - or pass them on to their customers. But Intel shares dropped 3.4 percent to $53.22 on Monday on news of a stock downgrade and investor concerns over tariffs. But in its battle against trade imbalance, White House has also targeted European Union and its neighbors in Canada and Mexico. USA crude fell 1.6 percent to $64.80 a barrel in NY, and Brent crude, the worldwide standard for oil prices, fell 0.5 percent to $74.94 a barrel in London.

The S&P/TSX composite index closed down 67.10 points at 16,316.53, led by losses in the base metal sector.

The top White House trade adviser, Peter Navarro, says Beijing "may have underestimated the resolve of President Donald J. Trump" by refusing to meet USA demands on trade and by threatening to retaliate against American trade sanctions.

Canada has pledged $16.6 billion in countermeasures to respond to US tariffs on Canadian steel and aluminum. "President Trump has a great relationship with President Xi" Jinping of China.

Global markets slumped, with China-focused stocks hard hit.

Hong Kong stocks were also hit hard, with the benchmark Hang Seng index dropping almost 3 percent to its lowest closing level in six months.

Bond prices are rising, sending rates lower. Benchmark U.S. crude fell 23 cents to $64.83 a barrel in electronic trading on the New York Mercantile Exchange.

China's proposed tariffs on United States petroleum imports, part of a mounting trade war between the two countries, would crimp sales to the shale industry's largest customer, adding new pressure on USA crude prices, energy executives and analysts said in interviews this week.

Futures are showing the Dow Jones industrials and S&P 500 each headed for a decline of at least 1 percent.

But the more the target list expands, the more likely consumers will be hurt - one reason the administration lowered the tariffs on the next $200 billion in imports to 10 percent from the 25 percent on the original $50 billion.

Trump's new proposal comes days after he ordered a 25 percent tax on up to $50 billion in imports from China.