Published: Thu, June 21, 2018
Markets | By Noel Gibbs

Dow falls 287 points as trade war fears escalate

Dow falls 287 points as trade war fears escalate

China has accused the United States of "extreme pressure and blackmailing" and vowed to retaliate, and financial markets have been hit hard by the escalating trade dispute.

Peter Navarro, a top trade adviser to U.S. President Donald Trump, said he's unaware of any tariff exemption for Apple Inc.'s iPhone in the growing trade spat with China.

Gregory Daco, the chief U.S. economist at Oxford Economics, estimated that Trump's newest tariff threat, on $200 billion of Chinese goods, would shave 0.3 to 0.4 percentage points off gross domestic product.

The Chinese retaliation pattern shows that China intends to follow Donald Trump with "equal scale and equal strength" on every move he takes against China.

"Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong".

USA tariffs on Chinese products including steel, aluminium, and those that benefit from China's industrial development subsidy programmes including the "Made in China 2025" technology upgrade plan, could hurt a broad number of China-listed companies, said fund manager Dai, who is general manager of Shanghai Wisdom Investment. The Trump administration, they said, has forgotten an important lesson from the Great Depression.

Canada Legalizes Recreational Marijuana Use
As provinces decide local rules of implementation, marijuana availability will vary across the country. Canada has passed a landmark law that legalises the recreational use of marijuana nationwide.

Because Canada's economy is significantly smaller than the US economy, Canadians have more to lose in the event of a trade war, says Ian Lee, an associate professor of business at Carleton University. On Friday evening, China announced tariffs on U.S. products of an equal amount and implemented them on the same date (6 July) as the USA intends to implement tariffs on China.

Freeland told the committee the "absurd and insulting" USA metal tariffs will be met with a firm response on July 1.

Ramsey said the government needs "a comprehensive auto strategy that isn't just about a pool of money but also a strategy across the board in our own country to combat the threat of these tariffs".

Trump announced tariffs on Friday on US$50 billion (RM199.8 billion) of Chinese imports, including cars, starting on July 6.

Despite the promise by the leave assembled iPhone units alone, Apple is concerned that the Chinese could retaliate against the US company. Other companies say the approval process for licenses has slowed down.

Moments before Freeland's testimony, Trump unleashed a fresh attack, accusing Canadians of sneaking their American shopping back home - all because of what he calls "massive" tariffs on American goods.

Injured Neymar leaves Brazil's practice early with ankle pain
Still, considering the stakes, ESPN Brazil's Arnaldo Ribeiro was critical of Neymar for failing to deliver. Neymar has returned to training with Brazil after limping out of Tuesday's session with an ankle injury.

The US president said the tariffs would be imposed if China "refuses to change its practices".

Companies also are watching the fate of ZTE Corp. China responded by saying it would hit 659 United States products worth $50 billion. That included 36 percent in aerospace and 27 percent in autos - both industries cited in Chinese plans to develop global competitors.

Shares of Chinese companies listed in the US slumped.

Shares of Boeing, which has been a proxy for trade-war tensions with China, fell 3.8 percent, weighing the most on the Dow.

China said it would retaliate immediately by slapping duties on American export products, including crude oil, and suspend all previous trade agreements with Trump's administration.

Beijing also drew up a second list of $16 billion in chemical and energy products to hit with new tariffs, though it did not announce a date for imposing them. The Chinese government warned after another round of talks June 3 that it would discard those deals if the tariffs went ahead. "It's not easy but we're getting there", the president said.

Jeff Sessions: Migrant children held by administration are ‘well cared for’
Trump said Wednesday that he would sign an order that would stop his own policy of separating families at the U.S. -Mexico border. The attorneys join a chorus of church leaders and lawmakers from both parties who also have called the separations inhumane.

Like this: