Wall Street stocks end higher despite escalating US-China trade row - Ireland

Wall Street stocks end higher despite escalating US-China trade row - Ireland

Wall Street stocks end higher despite escalating US-China trade row - Ireland

China, which is fighting an economic slowdown, will be equally affected.

US stock index futures dipped on Friday after the United States and China slapped tit-for-tat duties on $34 billion worth of each other's imports, triggering what Beijing called the "largest-scale trade war". "The trade war ends when things collapse on Trump and the US has to reposition" its strategy toward China, said Rufus Yerxa, a trade negotiator in Republican and Democratic administrations who now heads the free-trade National Foreign Trade Council, to The Wall street Journal.

While U.S. goods to China including autos and agricultural products would face 25 percent tariffs, Washington imposed duties on Chinese products such as motor vehicles, computer disk drives, parts of pumps, valves and printers.

At a press conference in Beijing, China's foreign ministry spokesman Lu Kang defended the retaliatory tariffs on U.S. goods owing to the US' "unfair" trade actions. Trump said it was to protect US security interests.

From soybean farmers and pork producers to the motorcycle manufacturer Harley Davidson, numerous American exporters are facing upheavals from the tariffs. "We should be working with our allies to isolate China rather than escalate a trade war", said Senator Jerry Moran, who represents the agriculture-heavy state of Kansas.

WTO spokesman Dan Pruzin has cited concerns expressed on Twitter by WTO Director-General Roberto Azevedo about new "restrictive measures" before 25-percent US tariffs on $34 billion worth of Chinese imports took effect.

The oilseed is the top agricultural commodity that the US ships to China by far and is among the largest products for overall exports.

Rabobank reckons China may have to buy up to 15 million tonnes of USA beans at tariff prices.

The trade wars have finally begun.

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"China would never start a trade war but if any party resorts to an increase of tariffs, then China will take measures in response to protect development interests".

The tariff impact has yet to show up in earnings forecasts, even though trade tensions were a worry heading into first-quarter results as well.

China lodged a case with the World Trade Organisation (WTO) against the United States, its commerce ministry said on Friday.

"He's going to deliver better deals", Kevin Hassett, chairman of the White House Council of Economic Advisers, said on FOX Business Network. Those tariffs could lead to reciprocal taxes from other countries that could hurt USA automakers and lead to layoffs.

U.S. crude stood 0.2% higher at $73.09 a barrel. The products, sold on Chinese e-commerce platforms, ranged from pet food to mixed nuts and whiskey. "The market is not priced in for that", said Freedman. But German automaker BMW (BMWG.DE) said it is unable to "completely absorb" new Chinese tariff on imported US -made models and will raise prices.

As the threatened tariffs took effect last week, Chan Ken Yew, the head of research at Kenanga Investment Bank Bhd observed that the stock market decline was not confined to Malaysia as investors around the world became more circumspect.

Stocks rose on Friday on the back of stronger-than-expected employment data.

If it happened, the Trump-led economy could eventually buckle under the weight of protectionist trade policies. China retaliated with taxes on an equal amount of U.S. products, including soybeans, pork and electric cars, calling the move the start of the "biggest trade war in economic history".

Trump has railed against Beijing for intellectual property theft, barriers to entry for US businesses and a $375 billion USA trade deficit with China. After exchanging several threats over the last few months, both the United States and China implemented a tariff of 25% on imports worth $34 billion last Friday. Immediately after that, China's retaliatory tariffs of equal scale went into force.

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