China presses Europe for anti-U.S. alliance on trade

Relations have soured between US President Donald Trump’s administration and that of Chinese President Xi Jinping since they met in Beijing last year sparking fears of an all-out trade war

Relations have soured between US President Donald Trump’s administration and that of Chinese President Xi Jinping since they met in Beijing last year sparking fears of an all-out trade war

Hours before Washington's deadline for the tariffs to take effect, US President Donald Trump upped the ante, warning that the United States may ultimately target over $500 billion worth of Chinese goods, or roughly the total amount of US imports from China past year.

In mid-June, Chinese officials announced an additional 25 percent duty starting July 6 in retaliation for US tariffs on additional products from China. The Chinese government had not officially confirmed on Friday afternoon that the retaliatory tariffs had taken effect.

That equates to 700,000 barrels per day, 8 percent of China's daily imports and a large volume for the United States, a newcomer to the Chinese market.

The company wants customers to split the cost of the tariff hike, but few are willing, said Tong. In 2017, almost one in every three rows of harvested beans shipped to China.

The ministry called the USA actions "a violation of world trade rules" and said that it had "initiated the largest-scale trade war in economic history".

Chinese stocks slipped on Thursday and the yuan steadied from earlier losses as a targeted cut of reserve requirements for banks took effect.

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Widely-read tabloid the Global Times, published by the ruling Communist Party's People's Daily, said the increasingly likely trade war would bring chaos to the world.

US officials accuse China of building its industrial dominance by stealing the "crown jewels" of American technological know-how through cyber-theft, forced transfers of intellectual property and state-sponsored corporate acquisitions.

President Donald Trump has warned that the ready to target an additional $200 billion in Chinese imports - and then $300 billion more - if Beijing refuses to yield to US demands and continues to retaliate.

The managing director of the Association of German Chambers of Trade and Commerce, Martin Wansleben, also spoke out Monday in favor of strengthening economic relations between his country and China.

Both sides are also mulling imposing higher duties on imported cars - a measure that would also hurt Germany with carmakers such as BMW and Daimler shipping a considerable amount of vehicles to China from their production facilities in the US. The two-year yield, which rises with traders' expectations of higher Fed fund rates, touched 2.5527 percent compared with a USA close of 2.561 percent.

"Companies don't know how big this may get, or how it will end".

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Early on Friday, China's Commerce Ministry accused the U.S. of launching the "largest trade war in economic history", and said it could trigger "global market turmoil".

By themselves, the tariffs that take effect Friday won't immediately have a dramatic impact on global trade.

"This is not economic Armageddon". It said they would damage the global economy unless other countries stop them.

The Finance Ministry has yet to formally issue the final list of goods to which the higher tariffs will apply. But some products, including thermostats, are lumped into intermediate and capital goods categories. The Chinese Ministry of Commerce has issued a statement calling the USA move "typical trade bullying" and held that "in order to defend the core interests of the country and the interests of the people, we are forced to retaliate", according to The Washington Post.

"Sentiment is holding up well in Asia today, reflecting that tariffs on $34 billion of goods is pretty much priced in", said Frances Cheung, head of Asia macro strategy at Westpac in Singapore. In mid-June, Mexico warned it could strike $4 billion worth of USA corn and soy imports if President Trump imposes new tariffs, Reuters reported.

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