Global equities fell on Monday after their worst week of 2019, as hopes of an imminent U.S.-China trade deal were crushed and neither side showed a willingness to budge, raising fears of a fresh round of tit-for-tat tariffs.
The bruising trade battle between the U.S. and China heated up on Monday.
China’s government has vowed it will never surrender to foreign pressure and said it would retaliate after the U.S. hiked tariffs on $200 billion of Chinese goods but did not say how.
“Regarding the U.S. adding tariffs to Chinese exports to the U.S., China has to take countermeasures. As for the details, please continue to pay attention. Copying a U.S. expression which they often use, wait and see.”
Chinese Foreign Ministry Spokesman, Geng Shuang
On Sunday, Washington ordered additional tariffs on all remaining imports from China, affecting another $300 billion worth of goods.
Trump said Beijing quote “broke the deal” by backtracking on earlier comments made during months of negotiations and has urged China to change its laws.
That prospect looks unlikely- Beijing said on Monday it would not swallow the quote “bitter fruit that harms its core interests”.
The tit-for-tat trade war took aim at Monday’s markets with investors bracing for Chinese counter-measures.
The Shanghai Composite shed 1.3% and the blue-chip CSI 300 lost 1.8%
In Japan, The Nikkei average hit its lowest level since late March- before recovering some ground.
Source: Reuters
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