Monday, June 25, 2018

Escalating trade wars continue between America and China


Escalating trade war between US & China sends shock waves through markets

RT 19 Jun, 2018
Global stocks crashed on Tuesday after US President Donald Trump threatened another 10-percent tariff on $200 billion of Chinese imports in response to Beijing’s retaliation for the previous package of levies imposed by the US.

China vowed to protect its interests, countering any US tariffs imposed on its goods with a mirror response.

“This practice of extreme pressure and blackmail” will be met with other comprehensive quantitative and qualitative measures, the country’s Commerce Ministry warned.

“The United States has initiated a trade war that violates market laws and is not in accordance with current global development trends,” it added.

Last week, Washington announced tariffs on 1,102 separate categories of Chinese products, to come into effect on July 6. Beijing immediately retaliated with a 25-percent tariff on 545 American products worth $50 billion, which will come into force on the same day. Chinese authorities also pledged to add another 114 product categories to the existing list.

The growing trade spat between Beijing and Washington has dragged global markets down as investors opt to get rid of riskier assets. China’s stock market dropped 2.7 percent, while Japan’s Nikkei ended down by 1.7 percent.

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