Larry Kudlow, President Donald Trump's top economic adviser, said Sunday that US officials expect China to retaliate for the tariff hike the Trump administration imposed last week. On Friday, the United States increased tariffs on $200 billion of Chinese goods to 25% from 10%.
"We'll see what they come up with," Kudlow said of the expected retaliation.
China will "never yield to external pressure" and is determined to protect its rights, a spokesperson for the Ministry of Foreign Affairs, Geng Shuang, said Monday.
"As for details, please continue to pay attention ... wait and see," Geng told reporters in Beijing.
Asian stocks dipped lower on Monday, with Japan's Nikkei Index (N225) dropping around 0.7% and the Shanghai Composite Index (SHCOMP) closing more than 1% lower. Hong Kong markets were closed for a holiday.
Major European markets like the FTSE 100 (UKX), DAX (DAX) and CAC40 (CAC40) all edged lower in early trading.
Dow futures were down nearly 300 points early Monday morning, while S&P 500 and Nasdaq futures were down more than 1%.
Wall Street investors fear an escalating trade war in which both the United States and China continue to raise tariffs. US businesses that import Chinese goods pay the tariffs levied by the United States. Companies either eat that cost, which pinches their profits; or they pass the cost onto consumers, which can hurt demand for their products.
Either way, companies lose. That's why Wall Street has been hoping for an end to the trade war.
Although discussions between the United States and China ended without a deal on Friday, investors were encouraged by positive comments from Trump's trade team. That turned big losses in the stock market into gains Friday afternoon.
Yet it's not clear what the next step will be to resolve the dispute.
Beijing has pledged to take "necessary countermeasures" to the tariff increase that went into effect but has not offered specifics on how it would respond. China put tariffs on American agricultural products in response to previous Trump tariffs and stopped buying US soybeans for about six months.
Kudlow said Sunday there is a "strong possibility" Trump will meet Chinese President Xi Jinping at the G20 economic summit in Japan next month.
Last week was horrible overall for US stocks. It was the Dow's worst week since March, and every major index recorded losses.
Trump did little to assuage those concerns over the weekend, tweeting aggressively about the tariffs he is imposing.
"We are right where we want to be with China," he said in one tweet. "Remember, they broke the deal with us & tried to renegotiate. We will be taking in Tens of Billions of Dollars in Tariffs from China."
https://www.cnn.com/2019/05/12/investing/dow-global-stocks/index.html
2019-05-13 10:22:00Z
CAIiEOu9HNHuQova-IfidfZsgUEqGQgEKhAIACoHCAowocv1CjCSptoCMPrTpgU
Bagikan Berita Ini
0 Response to "Global markets stutter as trade war fears persist - CNN"
Post a Comment