The Chinese government has yet to officially comment on President Trump’s
In China, Hong Kong’s Hang Seng index dropped 3.7%, while the Shanghai
Composite plunged 5.3%.
US stock futures pointed to a lower open on Wall Street.
On May 3, President Trump tweeted: “For 10 months, China has been paying Tariffs to the USA of 25% on 50
Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods.
These payments are partially responsible for our great economic results. The
10% will go up to 25% on Friday. 325 Billions Dollars….”
“The Trade Deal with China
continues, but too slowly, as they attempt to renegotiate. No!” he
After imposing duties on billions of dollars worth of one another’s goods
last year, the US and China have been negotiating and in recent weeks, appeared
to be close to striking a trade deal.
Last week US Treasury Secretary Steven Mnuchin described talks held in
Beijing as “productive”.
So far, the US has imposed tariffs on $250 billion of Chinese goods, having
accused China of unfair trade practices.
Beijing hit back with duties on $110 billion of American goods, blaming the
US for starting “the largest trade war in economic history”.
President Trump’s latest move will raise duties on more than 5,000 products
made by Chinese producers, ranging from chemicals to textiles and consumer
He originally imposed a 10% tariff on these goods in September that was due
to rise in January, but postponed this as negotiations advanced.
However, both US and international companies have said they are being harmed
by the trade war.
Fears about a further escalation caused a slump in world stock markets
towards the end of last year.
The IMF has warned a full-blown trade war would weaken the global economy.
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