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Tit-for-tat tariffs will 'destroy' trade relations with US, says China

13 July 2018
Tit-for-tat tariffs will 'destroy' trade relations with US, says China

"The Chinese side is shocked by the actions of the United States", it said in a statement, according to a translation by Google.

"Concerns over trade and trade wars are really having an adverse effect, less so on the US markets than the global markets, but it is certainly taking a bite".

"Tariffs on $200 billion in Chinese products amounts to another multibillion-dollar tax on American businesses and families", said Scott Lincicome, a trade lawyer and senior policy analyst for the group Republicans Fighting Tariffs.

The trade confrontation between Washington and Beijing has been escalating for months, despite Trump's repeated statements that he has a good relationship with China's President Xi Jinping. Comcast shares were up 1.3 percent.

"As in the past, the United States is willing to engage in efforts that could lead to a resolution of our concerns about China's unfair trade practices and to China opening its market to U.S. goods and services", he said.

Australia's dollar, often seen as a proxy for China's economic fortunes due to Australian raw materials exported there, extended losses and was last down 1.21 percent.

Three-month aluminum on the London Metal Exchange lost 1.48 percent to $2,059.00 a tonne.

Both the yen and the dollar act as safe-haven investments but analysts say the strength of the United States dollar against the yen means investors have faith in the USA economy rather than seeking safety.

In Europe, shares extended losses after Trump kicked off a North Atlantic Treaty Organisation summit in Brussels by accusing Germany of being a "captive" of Russian Federation.

In commodities, Brent crude futures LCOc1 rose 1.35 percent to $74.38 a barrel after tanking 6.9 percent overnight, the biggest one-day percentage drop since February 2016 as trade tensions threatened to hurt oil demand and news that Libya would reopen its ports raised expectations of growing supply. "Who would think?" Mr Trump asked reporters yesterday at the White House.

The move came just days after the administration levied its previous tariffs package, valued at around $34 billion, against Chinese imports. "But we will work it out and all countries will be happy".

Or is it that the original tariffs were related to national security, and these are retaliatory tariffs intended only to retaliate against the original retaliatory Chinese tariffs-and thus don't need any particular justification?

"In part because they have only limited ammunition and in part because it's still early in the process on the U.S. side", Mr Kuijs added. "I hope you have no doubt this is an investment in our security, which can not be said with confidence about Russian and Chinese spending".

One senior European official commented that North Atlantic Treaty Organisation members are preparing for a worst-case scenario should Mr Trump repeat his threat to end or curtail defence cooperation, with allies not on track to hit their defence funding target of 2% of GDP by 2024.