Published: Wed, June 20, 2018
Money | By Ethel Goodwin

Dollar, yen, Swiss franc rise on latest US tariff threat

Dollar, yen, Swiss franc rise on latest US tariff threat

Bardole voted for Trump, and he says while the trade agreements the president rails against have actually been good for the U.S.ag industry, he also says they've been bad for other industries.

He said the move would be in retaliation for China's decision to raise tariffs on $50 billion in United States goods. Slapping tariffs on $200 billion more in goods, in addition to the $34 billion already set, would likely mean that nearly all Chinese products would face some import tax-though this depends on whether or not the new tariffs are on goods already taxed. Any further response from Beijing would lead to yet more American tariffs, according to Mr. Trump.

In a statement, Trump says he has an "excellent relationship" with Xi, "but the United States will no longer be taken advantage of on trade by China and other countries in the world".

"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. The tariffs were the result of an investigation by Commerce Department into the theft of U.S. intellectual property by Chinese companies.

While criticising Trump, the commerce ministry said China would defend free trade and remain committed to opening up "no matter how the external environment changes". "The latest tariff threats demonstrates Trump's frustration with the current state of negotiations with China, significantly increasing the likelihood that Trump will seek to use these investment restrictions in an attempt to bring China to the negotiating table".

The White House says the US can withstand trade tensions.

Stocks are sliding and bonds are rallying as fears mount about an escalating U.S.

A central concern of the USA administration - and the reason for the initial sanctions - was alleged intellectual property theft by Chinese firms.

President Donald Trump pumps his fist as he leaves a meeting Monday in the East Room of the White House in Washington. -China Business Council. He asked whether that might include delaying or denying licenses required by US companies. "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong", Trump said. Trump slapped tariffs on steel and aluminum from Canada, Mexico and the European Union, threatened to kill the North American Free Trade Agreement and is studying new tariffs on vehicle imports.

However, "history shows that there are various other measures [China] could take to inflict pain on United States companies, especially those present in China, including scaled up health, safety and tax checks, delaying the imports of goods, and boycotts of USA goods", he said.

USA stock markets fell sharply Tuesday morning, with investors increasingly nervous about the impact of the escalating fight.

Trade-sensitive companies like Boeing Co. and Caterpillar Inc., China-exposed stocks like Acacia Communications Inc. and NXP Semiconductors, and steel producers and metals companies like Alcoa Corp. and United States Steel Corp. are among the hardest hit in NY trading, while the Dow Jones Transportation Average is down 1.9 per cent, the most since May 3.

"China can make compromises by boosting imports from the USA, lowering market entry restrictions for U.S. businesses ... but it's hard for China to make compromises at the structural level such as significantly reducing the role the state plays in economic activities", he said.

The president said the move was a retaliatory response to China's decision to raise tariffs on $50 billion of American goods, including cars, tobacco, petrochemicals and agricultural products.

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