China hits back at USA with tariffs on $60bn of products

The ongoing trade fight between the world's two biggest economies is roiling markets and weighing on projections for global growth

The Dow Jones industrial average was down more than 600 points, or more than 2%, in midday trading Monday.

A commentary in Chinese state-run news agency Xinhua, citing Chinese academics at a think tank over the weekend, said that facing US tariff hike threats, China has adhered to its bottom line, defended national dignity and people's interests. Similarly the Standard & Poor's 500-stock index had seen a drop of 2.5 percent, the Nasdaq Composite fell by 3.5 percent and 10 out of 11 market sectors were in negative territory as of 12 p.m. ET, with the only exception being utilities.

Markets in Europe also extended losses, with the FTSE 100 down about 0.5%, while the main indexes in Frankfurt and Paris were more than 1% lower.

The U.S. and China had been making progress toward a final trade deal but a tentative agreement all but fell apart last week after the Chinese sought to make revisions to the deal, the White House said.

Last Thursday morning the Dow skidded 580 points, only to regain almost 470 by close of trading on Friday.

If all threatened tariffs - including the additional levies on goods from China and potential auto tariffs - were put into effect that would shave another $112.2 billion off of U.S. GDP. After that, Washington and Beijing repeatedly slapped billions of dollars' worth of retaliatory tariffs on each other.

The United States and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law and Beijing said it would not swallow any "bitter fruit" that harmed its interests. Some people just don't get it!" the U.S. president wrote, after tweeting that the tariffs can be "completely avoided if you by from a non-Tariffed Country, or you buy the product inside the United States of America (the best idea).

The U.S. -China standoff is reducing global trade and creating uncertainty for companies deciding where to buy supplies, locate offices and build plants, paralyzing investment. "You had a great deal, nearly completed, and you backed out!"

Analysts at Wedbush Securities said that Uber had clearly not had a "storybook start" as "investors continue to grapple with the valuation of the tech transportation stalwart especially in the backdrop of a risk-off vibe on the heels of heightened US-China trade tensions and market choppiness".

Legendary American actress and singer Doris Day dies aged 97
She never won an Academy Award, but Day was given a Presidential Medal of Freedom in 2004, as George W. By the late '60s, Day's squeaky-clean persona fell out of step with the times and her appeal waned.

Venezuela: Guaido’s deputy’s detainment illegal, says Pompeo
The auto was towed, with him inside, to Caracas' notorious El Helicoide prison, the Guardian reports. The Supreme Court had earlier accused the politicians of conspiracy, rebellion and treason.

76ers down Raptors, force Game 7
I guess I get one more and I'm gone for one game. "If I've got to play 45 minutes and push myself out there, that's what I'll do". Even a lacklustre National Basketball Association game is likely to offer up plays that get you out of your seat.

But according to Wei Jianguo, a former vice minister at China's Ministry of Commerce, Trump's latest escalation will be met with a powerful response from Beijing. In total, 5,410 U.S. products will be affected by the tariffs, the ministry said in a statement. Officials also said they were preparing to expand tariffs to cover another $300 billion of goods.

'Their [sic] is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today, ' he wrote.

"We have said many times that increasing tariffs will not solve any problem", spokesman Geng Shuang said, hours before Beijing said it would itself raise tariffs.

"It " s not China that pays the tariffs, it " s the American importers, the American companies that pay what, is in fact, a tax increase", he said. That's why China wants to make a deal so badly!

That still compares favorably with a 20% fall between Oct.3 and Christmas of past year, but it has traders again talking about the end of a decade-long rally that dates back to the aftermath of the 2008 financial crash.

The tariffs war has been hammering Chinese manufacturers and is an added drag on growth for the region.

Chinese state media has also dismissed the latest American steps in the costly trade war and warned that the administrations miscalculations would end up costing the country dear. "Fox News Sunday" host Chris Wallace pressed Kudlow about this apparent contradiction on Sunday.

"Trade talks between the USA and China are likely to continue, despite the resumption of tit-for-tat tariffs", Freya Beamish, chief Asia economist for Pantheon Macroeconomics, said in a research note.

"China will never surrender to external pressure".

Related news:

Hot News

isis-killer-beheading-video-story-top Three bodies found with crossbow wounds in German hotel room
May 14, 2019 - 01:32
Early on Saturday morning, the maid found a dead man and women holding hands on the bed, while the third lay dead on the floor . They said it was not clear what their relationship was, what happened inside the hotel room or how exactly the three died.

isis-killer-beheading-video-story-top Iran facing 'unprecedented' pressure from global sanctions, Rouhani says
May 13, 2019 - 17:28
Washington responded to Iran's decision to renege on key facets of the historic accord by imposing anti-Iranian sanctions. We urge European leaders to take such threats seriously, and to stand tall in the face of Iran's nefarious intentions.

isis-killer-beheading-video-story-top Uber's Rocky IPO Is a 'Near-Term Speed Bump,' Wedbush's Ives Says
May 13, 2019 - 17:23
Its rival Lyft just went public, raising $2.34 billion , and many are questioning whether either company can become profitable. The much-anticipated Uber initial public offering managed to break a record, but not one that investors would have hoped for.

isis-killer-beheading-video-story-top China says will 'never surrender' as U.S. trade row heats up
May 13, 2019 - 17:03
Skinner put it in racial terms, telling a security forum the China was first U.S. "great power competitor that is not Caucasian". That reversal spurred Trump's move last week's to raise tariffs from 10% to 25% on a $200 billion tranche of imports from China.

isis-killer-beheading-video-story-top Rihanna to launch groundbreaking new fashion label with LVMH
May 12, 2019 - 00:38
The singer's cosmetics brand, Fenty Beauty , reached almost 500 million euros (£431 million) in sales by the end of 2018. Rihanna told her fans years ago that her reign would never let up, and she's remained true to the promise.

isis-killer-beheading-video-story-top Party City To Shutter 45 Stores Due To Helium Shortage
May 12, 2019 - 00:36
Harrison, CEO of Party City, said the chain typically closes 10-16 stores a year. Party City ended the quarter with $1,991 million in debt.

isis-killer-beheading-video-story-top Trump orders USTR to start process of taxing all imports from China
May 12, 2019 - 00:34
Liu, China's top economic official, said the country's economy was improving after bottoming out at the end of previous year . US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin shook hands with Liu as he left.

isis-killer-beheading-video-story-top Drake Shows off His New Private Plane and Swears It’s All His
May 12, 2019 - 00:33
Not only is he out of economy class, but this man seriously went and got himself a whole new Drake-branded aircraft. The giant 767 has two bedrooms and the rapper's praying hands logo is painted on the tail of the plane.

isis-killer-beheading-video-story-top AAP takes dig at Gautam Gambhir for using 'lookalike' during campaigning
May 12, 2019 - 00:33
The escalation in the AAP-BJP war took place as campaigning tapered down for voting in Delhi on Sunday for the national election. Gambhir said that if AAP fails to prove the allegations, Chief Minister Arvind Kejriwal should quit politics.

isis-killer-beheading-video-story-top Matters of politics, race accompany Red Sox to White House
May 12, 2019 - 00:32
But some team members tied their decisions to Trump. "Unfortunately, we are still struggling, still fighting". The Red Sox players are hardly the first to stay home to protest the Trump administration.

Trump says 'very surprised' by son's subpoena in Russian Federation probe
May 12, 2019 - 00:31
President Donald Trump says he's "very surprised" that the Senate Intelligence Committee has subpoenaed his eldest son. Jared Kushner, Trump's son-in-law, appeared for a second closed-door session in late March.

isis-killer-beheading-video-story-top Constance Wu blames 'rough day' for candid tweets
May 12, 2019 - 00:29
After giving it a little bit of time, Wu came back with another tweet, this one a bit less argumentative. In a series of tweets, Wu groused that she was "so upset now that I'm literally crying".

isis-killer-beheading-video-story-top Denver is 1st US city to decriminalize 'magic mushrooms'
May 12, 2019 - 00:26
He also noted that a large, and rising, percentage of the American populace is taking medication for mental health. Denver's law enforcement community was not thrilled by the prospect of more readily available hallucinogens.

isis-killer-beheading-video-story-top Gaza artists name on Eurovision singers to boycott Israel
May 11, 2019 - 01:56
Nakhaleh said if the fighting continued for just a few more hours, "it would have been possible to bombard Tel Aviv". Gaza's Hamas-run health ministry said 29 Palestinians were killed by Israel's air strikes.

isis-killer-beheading-video-story-top Trump Tweets US Plan as Tariffs on Chinese Products Kick In
May 11, 2019 - 01:45
For instance, the US-China trade war was one of the key factors that triggered a massive sell-off in the fourth quarter of 2018. If the increases take effect as planned, Beijing will impose " necessary countermeasures ", the Commerce Ministry said.