Global investors clash as trade war gets closer | Business

Global investors were shaken Wednesday after a threat from the Trump administration to hit 10% tariff on $ 200 billion of imports sparked protests from Beijing and took another step towards a total trade war. US markets fell in the United States, Asia and Europe, with the United States warning that they would impose new tariffs and that China had promised to "fight back as usual" with "Firm and energetic measures".

The FTSE 100 ended the day 100 points lower at 7.591, down 1.3%, while the Dax slipped 1.5% in Germany and the Dow Jones fell 180 points, or 0 , 7%, at the beginning of the session. The Shanghai stock market reached 2,777, down 1.8% from the previous day and about 25% since the beginning of the year.

The US Administration has published a vast list of Chinese products likely to be hit by new tariffs. two-month consultation, including hundreds of food products as well as tobacco, coal, chemicals and tires, dog and cat food, and consumer electronics, including television components . Some of the most eccentric items on the list included frog legs and anvils.

The trade wave between the United States and China really began last week after the United States officially established $ 34 billion in tariffs on Chinese products, including ships , engines and nuclear reactors. Beijing responded immediately with countermeasures of similar value targeting soy, tobacco and cars.

"For more than a year, the Trump administration has been urging China to stop unfair practices, open up its market and engage in real market competition," he said. said US Trade Representative Robert Lighthizer. Referring to the Chinese retaliation on Friday, he added: "Rather than responding to our legitimate concerns, China has started to respond to US products … Nothing justifies such action."

On Wednesday, China responded to the proposed tariffs, which would be at the top of two other rounds, saying that "the irrational actions of the United States" hurt the world as well as the United States. Officials said China would seek support from the international community to resist "commercial hegemony".

The Chinese Ministry of Commerce said in a statement: "China is shocked by the behavior of the US In order to safeguard the fundamental interests of the country and the people, China will have to fight as usual "

In Beijing, Li Chenggang, deputy minister at the Ministry, said at a forum in Beijing that the latest US proposals interfered with the globalization of the world economy and that China's support for a multilateral trading system would not change.

China has repeatedly said that it is more ready for a trade war than the United States. An editorial in the English language of the China Daily, published by the state, said: "If Trump launches a total trade war, the US economy and society may not be able to withstand counter-attacks. measures of China and other economies. "

Yet, Chinese investors and companies are worried about a trade war between the two largest economies in the world. Before the rates put in place last week, the Shanghai Composite had fallen to its lowest level in two years. China exports about $ 500 billion worth of goods to the United States, while it imports about $ 130 billion, giving the United States more weight in the strict framework of a battle over the costs of the goods exchanged.

told Xinhua: "There are still all sorts of uncertainties as to whether tariffs will be taxed and on which products."

Donald Trump said he could impose tariffs on more than $ 500 billion worth of Chinese goods. US imports from China last year. Some US business groups and senior lawmakers have criticized the latest action on Tuesday, chairman of the Senate Finance Committee, Orrin Hatch, a Republican, saying that he "seems reckless and is not a

The American Chamber of Commerce, which supported Trump's tax cuts and efforts to reduce corporate regulation, also criticized the move of the administration.

"Fees are simple, simple taxes, imposing another $ 200 billion in taxes will increase the cost of everyday products for American families, farmers, ranchers, workers, and farmers. Job creators. "A spokeswoman for the House said:" The Retail Industry Leaders Association, a lobby group representing the largest US retailers, said: "The President broke his promise to bring in maximum pain. "

Hun Quach, head of the group's international trade policy, said," American families are the ones who are punished. "Consumers, businesses, and US trade-dependent jobs are left in the crosshairs of a global trade war that intensifies. "