China plans to impose tit-for-tat tariffs on $60 billion of U.S. goods after US escalated trade war. Last week the Trump administration raised tariffs on $200 billion of Chinese products to 25%.
China will impose tariffs on a total of 5,140 U.S. products from June 1, the ministry said in a statement on Monday. The economic giant stroke back in its trade war with Washington shortly after U.S. President Donald Trump warned it not to retaliate. The announcement came less than two hours after Trump warned Beijing not to retaliate after China said it “will never surrender to external pressure.” The White House and U.S. Trade Representative’s office did not immediately return a request for comment.
Talks between the countries ended without a deal on Friday, and no new talks have been scheduled. U.S. President Donald Trump’s tariff increase to 25% from 10% on $200 billion of Chinese goods kicked in on Friday. Beijing said it would strike back. The two sides pursued last-ditch talks to try to salvage a trade deal. The world’s two biggest economies appear deadlocked.
The United States escalated a tariff war with China on Friday by hiking levies on $200 billion worth of Chinese goods amid last-ditch talks to rescue a trade deal. U.S. President Donald Trump signaled that talks could drag on beyond. In a series of early morning tweets on Friday, Trump defended his decision to raise tariffs.
President Trump and his Chinese counterpart are likely to meet during a G20 summit at the end of June and discuss trade.
START TRADINGForex – Tit-for-tat tariffs made in China
Rising tensions between the two countries hurt the greenback against safe haven currencies the Japanese yen and Swiss franc as well as the euro.
The dollar index against a basket of six major currencies was flat at 97.318.
Investors bid up the yen, which was 0.25% higher at 109.700 yen, near last week’s three-month high of 109.470. Yen which is considered a safe haven in times of stress given Japan’s status as the world’s largest creditor.
The Australian dollar shed 0.3% to $0.6976. A drop below $0.6960 would take the currency to its lowest since early January.
Sterling was little changed on Monday as cross-party Brexit deal hopes linger. Brexit talks between UK government and Labour to resume on Monday. Sterling was flat at $1.30 against the dollar — roughly the middle of the $1.2851-$1.3190 range of recent weeks — and 86.33 per euro.
Oil prices rose on Monday on increasing concerns about supply disruptions in the Middle East. Brent crude futures were at $71.77 a barrel by 1134 GMT, up $1.15. West Texas Intermediate (WTI) crude futures were at $62.49 per barrel, up 83 cents.
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Sources: Reuters, Investing, CNN money