Trump Confirms $34B Tariffs on China, Possible $516B More

GETTYChina's tariff will hit the US first

GETTYChina's tariff will hit the US first

The U.S.is set to slap tariffs on Chinese goods on Friday as scheduled, the first shot in a trade war between the world's two biggest economies.

In the Bulgarian capital, Li will attend a meeting between China and 16 central and eastern European countries that will focus on trade.

Replacing American shipments with coal from other places would not be hard for China, but a loss of business with the world's top importer of the fuel would hurt companies in West Virginia, a state that heavily favoured Trump in the 2016 presidential election. The head of the European Commission, Jean-Claude Juncker, said Mr Trump's fixation on a United States trade deficit in goods ignores a services surplus.

That would bring the total of targeted Chinese goods to potentially $550 billion which is more than the $506 billion in goods that China shipped to the USA a year ago.

Donald Trump has recently announced his plan to impose $200 billion worth of new tariffs on Chinese products due to China's retaliatory moves. US stocks edged higher on Thursday, lifted by technology shares, amid hopes that American trade tensions with Europe may ease after German Chancellor Angela Merkel said she would back a reduction of European vehicle tariffs if Washington abandons its threatened higher auto levies.

"The United States has violated World Trade Organization rules and ignited the largest trade war in economic history", China's Commerce Ministry said in a statement.

"A rise in trade protectionism would increase global risk aversion and disproportionately affect non-USD countries due to their relative economic openness", analysts at Bank of America Merrill Lynch said in a recent note.

The Chinese government wasted no time responding to President Donald Trump's tariffs and promised swift action in retaliation to the trade restrictions.

Many European companies would suffer because they both produce and sell goods in the USA and China, the world's biggest economies.

A solid pickup in hiring by US employers last month also helped keep investors in a buying mood.

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President Donald Trump on Monday warned the WTO that if the USA isn't treated "properly, we will be doing something". (Hello Hye-sung/ Hi Ji-yoon.) So tell us more about all this trade battle.

Le Drian said such policies have victims, "but the victims tomorrow will be the Americans themselves".

The U.S. will levy a 25-percent tariff on more than 800 Chinese product categories worth around $34 billion and has warned of more to come if a trade war escalates.

The impact is already being felt in the markets. "Our position remains consistent and very clear", he added.

Asian markets are mixed as the US prepares to impose billions of dollars of tariffs on China, raising tensions between the world's two largest economies.

The Shanghai Composite Index .SSEC ended up 0.5 percent after flirting with two-year lows in the morning session. "Tariffs will negate gains made by the public from tax reforms and deregulation, push up US production costs, damage the competitiveness of businesses and their workers, and force companies to look outside the U.S.to maintain production". The tariffs were issued on the basis of combatting unfair Chinese trade practices.

"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.

China's Commerce Ministry said it would be "forced to make a necessary counterattack".

Beijing earlier released a list of American goods targeted for possible tariff hikes including soybeans, electric cars and whiskey.

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