Copper Prices Fall as US and China Step Up Trade Tussle

Copper Prices Fall as US and China Step Up Trade Tussle

Copper Prices Fall as US and China Step Up Trade Tussle

In response, China on Sunday slapped tariffs on $3 billion on agricultural products from the US including hog parts, wine, fruit and nuts.

Oil prices slipped to a two-week low as the speed with which Beijing responded to USA measures, within 11 hours, raised the prospect of a quickly spiraling dispute that could crimp the global economy, including the demand for crude. "So, it's hardly a life-threatening activity", Mr. Ross said.

But Hufbauer said Trump has moderated his position repeatedly after making severe threats: compromising in negotiations on free trade agreements with South Korea, Canada and Mexico as well as exempting allies from tariffs on steel and aluminum.

Fears of escalating tariffs made stock markets plunge, with a broad sell-off among investors at the time.

China on Wednesday issued a $50 billion list of USA goods including soybeans and small aircraft for possible tariff hikes in an escalating technology dispute with Washington that companies worry could set back the global economic recovery.

Other than steel and aluminum, the tariffs are only threat at this point: the United States will have a 30-day comment period before determining the final list of Chinese goods on the hit list, and China also is holding off pending talks.

Contrary to President TrumpDonald John TrumpWalker warns of Dem wave in Wisconsin after liberal wins state judicial race Trump speaks with Israel's Netanyahu as tensions simmer in region Dem-backed candidate wins Wisconsin Supreme Court race MORE's assertion that trade wars can be easily won, the experience in the 1930s with such wars would suggest otherwise.

William Zarit told The Associated Press in an interview Wednesday that proposed tit-for-tat tariff hikes by both sides would first hit global stock markets.

"I think of a trade war as an escalation ladder, and these moves are still low rungs on the ladder", he said. Almost all clothing sold in the USA - 97 percent- is imported, and China is the top import partner by far, responsible for 41 percent of US imports.

Stocks remain lower on Wall Street amid an escalating trade dispute between the us and China but have pared some of their sharp early losses.

The tit-for-tat action comes hours after Washington detailed about 1,300 Chinese products it meant to hit with tariffs - also set at 25%.

The policy calls for creating Chinese global leaders in electric cars, robots and other fields.

Wang said the plan, which sets specific targets for domestic brands' share of some markets, should be seen as a guide rather than mandatory.

Foreign business groups complain that strategy will limit or outright block access to those industries.

This is partly because being a relatively open and export-dependent economy, China's economic health depends very much on a prosperous US and world economy.

The recent announcement of new tariffs on Chinese imports led to market uncertainties due to fear of a trade war. Prior to that, major USA retail companies like Macy's Inc., Target Corp., and Best Buy Co., Inc. had also expressed their disapproval. As China sought to divert its supply to other markets it could be expected to trim its margins, he said in an interview with ABS-CBN News.

US gold futures for June delivery settled up $2.90 at $1,340.20 an ounce.

The Trump administration announces punitive tariffs on about $50 billion in Chinese goods in retaliation for what it says has been the massive theft of intellectual property from American companies. "That's our hope", said Secretary of Agriculture Sonny Perdue.

It is imposing tariffs of 25 percent on over 100 types of U.S. products, including soybeans, cars, alcohol and tobacco.

Zhu said that China never gives in to outside pressure and that "pressure from the outside will only urge and encourage the Chinese people to work even harder" and to innovate and develop.

China's swift but measured retaliation to the US steel and aluminum tariffs is meant to show "that it will not be pushed around but that it does not want a trade war", said Amanda DeBusk, chair of the worldwide trade department at the law firm Hughes Hubbard & Reed.

"China does not want a trade war because no one will emerge as a victor", said Wang Shouwen.

Wang said Beijing was willing to resolve these disputes with the USA through dialogue on the basis of "mutual respect and mutual benefit".

United States economists said they expect the broader economic impact of the measures to be limited if they move forward, but warned that the risk of further escalation could weigh on business activity.

The USTR said the sectors subject to the proposed tariffs include industries such as aerospace, information and communication technology, robotics, and machinery.

"China's prompt move shows its determination - it's not afraid of a trade war and won't surrender to any intimidation".

It said a 25 percent tariff would be imposed and the date the charges will take effect would be announced later. Earlier, his administration Beijing of making "state-led, market-distorting efforts to force, pressure, and steal USA technologies and intellectual property".

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