US stock futures fall after Trump announces new round of tariffs

  • US stock futures fall after Trump announces new round of tariffs

US stock futures fall after Trump announces new round of tariffs

The commerce ministry's statement came hours after Trump said he was imposing 10 percent tariffs on about $200 billion worth of imports from China, and threatened duties on about $267 billion (£203 billion) more if China retaliated against the USA action.

What is on the new list?

China is reviewing plans to send a delegation to Washington for fresh talks in light of the USA decision, the South China Morning Post reported today, citing a government source in Beijing.

Turkey has in turn hiked tariffs on imports of several United States products such as rice, alcohol, leaf tobacco, cosmetics and cars.

It is also the biggest set of tariffs to date, and unlike the earlier rounds this latest list targets consumer goods, such as luggage and furniture.

It could have been longer: some 300 product categories were removed from the list following lobbying from the retail industry and strong opposition from technology giants.

Smart watches, bluetooth devices removed from tariff list; bicycle helmets, baby vehicle seats, safety gear also excluded.

Apple CEO Tim Cook has been lobbying administration officials to avoid imposing tariffs. That could affect smaller technology firms such as Eero, a start-up company that makes home routers and had asked to be exempted from the tariffs.

President Donald Trump made the announcement Monday in a move that is sure to ratchet up hostilities between Washington and Beijing.

The summary, released on Tuesday morning, quoted Zhong as saying "entrepreneurs are very anxious about the possible consequences of trade conflicts in the world's two largest economies, which we do not want to see".

Trump making good on a threat earlier in the day on Twitter: "If countries will not make fair deals with us, they will be Tariffed!".

"If countries will not make fair deals with us, they will be 'Tariffed!'" While United States inflation has continued to rise steadily albeit modestly, firms across the country report lost businesses, layoffs and possible bankruptcies as input costs rise and exports fall.

But the adjustments did little to appease technology and retail groups who argued U.S. consumers would feel the pain.

"Consumers - not China - will bear the brunt of these tariffs and American farmers and ranchers will see the harmful effects of retaliation worsen". It has pointed out that the new duties will hit household products including gas grills, travel bags, mattresses and vacuum cleaners. Millions of iDevices are exported from manufacturers in China each year, and Chinese government officials have explicitly suggested that those products could be casualties in the trade war. Since April, as the trade tensions began escalating, the yuan has depreciated against the United States dollar by nearly 9.5 per cent.

While there are measures China can take to retaliate, it is limited by the imbalance between its exports to the USA and its imports from the United States, which amount to only about $US130 billion a year. Its tariffs are meant to deliver pain to American farmers, who overwhelmingly backed Trump in the 2016 election and whose interests are represented by powerful lobbyists and members of Congress. Exports to China account for about 60 percent of the overseas sales of American soybean farmers, who stand to lose sales as a result of China's tariffs.

Earlier, China vowed that it will not play defense in the escalating trade dispute, adding further fuel to tensions as a new list of items subject to tariffs, including technology and consumer goods, was anticipated from Washington.

Wall Street titans have been desperately trying shuttle diplomacy between the Trump administration and China to stave off the trade war.

For years, multinational businesses "went where the labor was cheapest", Murphy said.