European firms say China's business 'more difficult' despite Beijing's claims of openness

Adjust Comment Print

The move comes just three days after the president detailed an initial $50 billion in imports that would be taxed an additional 25 percent, which he said was punishment for the theft of intellectual property from USA companies, as well as the trade gap between the two countries.

China's Commerce Ministry criticised the latest threat of tariffs, saying it was an "act of extreme pressure and blackmail that deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the worldwide community".

The dollar fell against the yen in early Asian trade on Tuesday after U.S. President Donald Trump's threats of more tariffs on China raised worries about an escalating trade war between the world's two largest economies.

It said, "If the USA side becomes irrational and issues the list, China must adopt comprehensive measures of the same quantity and quality in order to take strong countermeasures".

America's soy growers are lined up even more precisely in the crosshairs of President Trump's contentious tariff confrontation with China.

Trump's comments came hours after the top USA diplomat accused China of engaging in "predatory economics 101" and an "unprecedented level of larceny" of intellectual property. That's 90 percent of everything China exports to the US, from electronics, clothing, toys, tools, you name it.

Companies like Apple are anxious China could cause delays in supply chains and increase scrutiny of products under the guise of national security concerns, The New York Times reported.

"President Donald Trump's unwillingness to back down became apparent this morning, once again sinking markets into a risk-off atmosphere", Jingyi Pan of IG said in a report.

China's Commerce Ministry lambasted Trump's new tariff threat, saying it violated prior negotiations between the two countries.

"Everyone knows ... China is the main perpetrator", he said.

Cristiano Ronaldo makes more history as Portugal beats Morocco
It will be just the second meeting between the two countries, after Morocco beat Portugal 3-1 in the group stage at the 1986 finals.

As the Trump administration threatened tariffs of $200 billion on China imports, the People's Republic was quick to react.

But Beijing faces challenges in retaliating directly: China ships far more goods to the United States ($505 billion previous year, according to USA figures) than come back in the opposite direction ($130 billion).

After all, the United States sells much less to China than the other way around.

The United States and China have the world's biggest trading relationship but official ties are increasingly strained over complaints Beijing's technology development tactics hurt American companies.

Mounting concerns over the U.S. More than 800 exports, about $34 billion worth, will be subject to tariffs starting July 6.

Then China followed suit, unveiling 25 per cent duties on US$50 billion in U.S. imports - matching the United States rates.

China had offered to ramp up purchases of American goods by only $70 billion to help cut the yawning trade imbalance with the United States, whereas Trump had demanded a $200 billion deficit cut.

Some companies have reported Beijing is meeting with Chinese businesses to discuss shifting contracts for USA goods and services to suppliers from Europe or Japan, or to local Chinese firms, Parker said.

Smaller, more USA focused stocks were doing better than more internationally-focused US stocks, said Mokhtari.