Trump Warns China Not to Retaliate Against Tariff Hike

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Trump has also threatened to impose an additional 25 percent tariffs on $325 billion worth of imports from China.

Though the Chinese tariffs are more limited in scope, they have been more carefully calibrated to reduce ill effects on China, said Mei Xinyu, a researcher with the Chinese Academy of International Trade and Economic Co-operation, a research body under the Ministry of Commerce.

USA stock markets fell more than 2% on Monday after China announced retaliatory tariffs on US goods, heightening fears of a full-blown trade war between the world's two largest economies that could cripple global economic growth.

Going forward, however, the fallout from increased tariffs on Chinese goods will dampen global oil demand, as well as cause more stagnation in global growth, while Trump's indication that he could impose new tariffs on another $300 bn worth of Chinese goods could be severely damaging for global growth, especially still fragile emerging markets.

The abruptness of Trump's tariff announcement made companies see doing business in China as more uncertain, said Parker of the U.S.

In a separate post, he also reiterated the Trump administration's claim, denied by Beijing, that the two sides were close to a deal but that China backed away from key, already agreed to concessions.

A foreign ministry spokesman said Monday he had gotten no details about Chinese plans or high-level contacts since negotiations ended Friday without a deal.

Kudlow also said that Trump and China's President, Xi Jingping, may meet in late June at the G20 global conference in Japan.

"Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically".

Talks in Washington broke off on Friday without a deal, but both sides have indicated that future talks are likely.

"China is DREAMING that Sleepy Joe Biden, or any of the others, gets elected in 2020". US officials said the Chinese negotiators have been reversing themselves on commitments made in earlier trade talks.

Imposing those tariffs would affect a wide range of consumer goods - clothes, shoes, toys and electronics - that have been mostly exempted so far and could prompt steep cost increases that many United States citizens would likely notice.

In a series of tweets on Monday, Trump said China had "taken so advantage of the U.S. for so many years".

"Investors are trying to figure out how much of the rally that we had this year was perhaps celebrating prematurely hopes of a trade deal".

Beijing matched Trump's earlier 25 per cent tariff on $50 billion of American goods. Beijing wanted to delete prior commitments that Chinese laws would be changed to enact new policies on issues from intellectual property protection to forced technology transfers.

The administration a year ago handed farmers aid worth $11 billion to offset losses from trade conflicts.

Other US companies with large China operations suffered big declines, including Apple, down 5.3pc, Caterpillar, down 4.3pc, Deere & Company, down 5.2pc, General Motors, down 3.2pc and Starbucks, down 2.2pc.