Washington, August 24
US President Donald Trump said he has “hereby ordered” American companies to leave China, after Beijing announced plans to slap new tariffs on US goods. Trump announced a 5 per cent increase on tariffs on Chinese imports, after China unveiled plans for 10 per cent duties on $75 billion of US goods.
The latest salvos in the trade war sent global financial markets tumbling. The Dow Jones Industrial Average lost more than 620 points or 2.4 per cent while London’s FTSE 100 and the German DAX also turned negative. Stock markets in the US fell following news of China’s tariffs, but then recovered, only to fall again in response to Trump’s tweets.
The Dow Jones Industrial Average closed down 2.4 per cent at 25,629. The S&P 500 dropped 2.6 per cent while the Nasdaq was 3 per cent lower. “In the spirit of achieving fair trade, we must balance this very unfair trading relationship,” Trump tweeted. “Our great American companies are hereby ordered to immediately start looking for an alternative to China,” he tweeted earlier on Friday.
China’s new tariffs will range between 5 per cent and 10 per cent and apply to more than 5,000 goods coming from the US. Agricultural goods, crude oil and small aircraft are among the targeted items. Trump hit back, tweeting that $ 250 billion of Chinese imports, currently taxed at 25 per cent, would from now on be taxed at 30 per cent. Beijing also said it would revive a 25 per cent tariff on US car imports that it lifted earlier in 2019 in a goodwill gesture as the two countries tried to negotiate a trade agreement. — IANS
G7 summit: EU, us clash over trade
Biarritz: US President Donald Trump and EU leaders exchanged trade war threats on Saturday as they arrived in France for a G7 summit. “Trade wars will lead to recession,” EU Council President Donald Tusk said in Biarritz, the chic Atlantic resort chosen by French host President Emmanuel Macron to stage the annual meeting. Trump flew into Biarritz on Air Force One hours after promising to impose punishing tariffs on French wine imports if Macron doesn’t withdraw a tax on US tech giants. AFP
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