US stocks fall sharply as US-China trade war escalates

Trump speaks with reporters before departing aboard Marine One for Kentucky

That tariff was expected to be introduced on 1 September, but less than two weeks later Mr Trump delayed that date to 15 December over concerns it might hit Christmas shoppers.

"As usual, the Fed did NOTHING!"

China's government appealed to Trump this week to compromise in deadlocked talks aimed at settling the dispute that has battered exporters on both sides and threatens to tip the global economy into recession.

China on Friday announced tariff increased on $75 billion worth of United States products in retaliation for President Donald Trump's planned increase, deepening a trade war that threatens to tip the global economy into recession.

US bond prices rose sharply as investors sought safety, sending yields lower.

"The recent rise in nationalist, patriotic behaviour in China means that it would have been impossible for the Chinese government not to react to the latest USA tariffs", Agathe Demarais, global forecasting director at The Economist Intelligence Unit, said in a statement Friday morning.

"Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the United States of America".

The US president did, however, proceed with plans to raise tariffs on some Chinese goods from September 1, which likely prompted the latest tit-for-tat measures by Beijing.

After a meeting between Trump and Chinese President Xi Jinping in July, Beijing offered to alter its plans, but talks are now deadlocked over how to enforce any deal.

"My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?" He said they were "well anticipated" and would only strengthen Mr Trump's resolve.

China is also reinstituting an additional 25 per cent tariff on US-made vehicles and five per cent tariffs on auto parts that had been suspended at the beginning of the year.

Soybeans, crude oil and other energy goods face 5 percent tariffs.

After Trump gave the go-ahead earlier this month for tariffs on the almost $300 billion in Chinese imports that haven't been hit by higher duties, China halted purchases of agricultural goods and allowed the yuan to weaken.

US and Chinese negotiators are due to meet in September for a new round of trade talks but have not yet confirmed a date. It's unclear if Trump also wants to stop legal fentanyl, often used by cancer patients to treat pain, from entering the U.S.as well, which would cause an outcry from patients.

Related:

Comments

Latest news

Hamilton lands three new stores in pot-shop lottery
The Garden City is already home to Niagara's first retail cannabis store, The Niagara Herbalist at 33 Lakeshore Rd., Unit 15. The location of the proposed pot shop is also being supported by the Downtown Windsor Business Improvement Association.

Sri Lanka to play limited-overs series in Pakistan before December tests
The Sri Lanka cricket team will arrive in Karachi on September 25 and following their matches in Lahore will fly home on October 10.

Apple May Buy OLED Display Screens from China’s BOE
If you didn't know then, yes, Samsung makes those display panels for Apple and makes billions of dollars by the sales of iPhone. Two sources with knowledge of the situation said BOE was likely to supply the new iPhones next year if it wins certification.

YouTube will no longer let you send direct messages
Whether that's Facebook , Twitter , Reddit, or just copying the link and pasting it somewhere, the capability to share is staying. And now, YouTube is also encouraging users to use Stories section to improve the views on their YouTube Videos and Channels.

Watch Missy Elliott’s Epic ‘Throw It Back’ Video
Ready to get back in the spotlight, Elliott will be performing at Monday's VMA's in Newark, New Jersey. So, I have a SURPRISE for you. let's continue the celebration at midnight tonight ...

Other news