U.S., China sink into deepening trade conflict

Trump proposes new tariffs on $200B worth of Chinese goods

Trump proposes new tariffs on $200B worth of Chinese goods

U.S. President Donald Trump again slammed Canada over a trade dispute and claimed that Canadians are buying common products in the U.S. and having to "smuggle" them back into the country because of high tariffs.

"This is an unexpected move and clearly an escalation in both trade war rhetoric, and downside risk", said Chris Payne, managing director at GWM Investment Management.

Miffed by Pompeo's comments, China hit back saying that USA is making allegations to cover up its unilateral protectionist policies.

"China has been taking out 500 billion USA dollars a year out of our country and rebuilding China", Trump said in his address to the National federation of Independent Businesses.

These include major American exports to China such as soybeans, which brought in $14 billion in sales past year and are grown in states that supported Trump during the 2016 presidential election.

"The fundamental reality is that talk is cheap", Navarro told reporters on a conference call, saying China "may have underestimated the strong resolve of President Donald J. Trump". And Beijing says it would impose tariffs on $16 billion more if the United States does so, too.

Trump's proposed new tariffs would amount to the latest round of punitive steps in an escalating dispute between the world's two largest economies. -China trade tensions began in China. NAFTA is not treating footwear consumers in America unfairly, the American government itself has not lowered footwear duties in a meaningful way in over 80 years.

Monday night's move sent global stock markets sharply lower and the Dow followed suit when it opened, dropping over 340 points (1.37%) in early trading. China is a fast-growing huge market, and with tariffs of 25 percent, this market will remain effectively closed to US oil producers and LNG producers, too. Commodities such as oil, copper and soybeans fell.

China's commerce ministry said Beijing will fight back with "qualitative" and "quantitative" measures if the United States publishes an additional list of tariffs on Chinese goods.

"The trade relationship between the United States and China must be much more equitable", Mr. Trump said.

Mr Trump also has slapped tariffs on steel and aluminium imports from Canada, Mexico and European allies. He criticized China's trade policies as "predatory". Some believe Trump is bluffing, contrary to Navarro's comments.

President Trump's announcement to impose additional tariffs on China caused global markets to tumble, . with the Dow now on a six-day-long losing streak.

"Let us not understate the macroeconomic impact [of the trade spat]", International Monetary Fund chief Christine Lagarde warned last week. "I suspect that we are not going to cause the economies to collapse", Blankfein added.

Read the full report at the New York Times.

The tariffs announced by the White House on Friday hit more than 1,100 Chinese products with a rate of 25 percent.

Big industrial companies and chemical makers are hard hit. Yet the threat to US oil exports to China is not at all ridiculous: it is very real and should worry drillers.

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