AFP, Hong Kong :
Asian markets sank Thursday on mounting trade war fears after the US warned it was looking at more than doubling threatened tariffs on a range of Chinese imports.
Shanghai and Hong Kong led losses after Donald Trump’s Trade Representative Robert Lighthizer confirmed earlier reports that the White House was considering hiking levies to 25 percent from the announced 10 percent on $200 billion of Chinese goods.
“We have been very clear about the specific changes China should undertake. Regrettably, instead of changing its harmful behaviour, China has illegally retaliated against US workers, farmers, ranchers and businesses,” Lighthizer said.
His statement comes after separate reports said the two sides were looking to restart talks to avert a trade war between the world’s top two economies that could hammer global growth.
In response to earlier reports that the US was considering the move, Chinese foreign ministry spokesman Geng Shuang warned Wednesday that “blackmail and pressure from the US side will never work on China”.
The latest developments come as Washington considers imposing tariffs on
$16 billion of goods in the coming weeks, having already targeted imports
worth $34 billion last month.
Investors are left guessing about how the crisis will play out, with some
worrying that with both sides digging in there could be more pain down the
line, but others saying Trump is playing tough as a negotiating tactic.
“Markets are now wary of the next step in the trade war between the US and
China,” Nick Twidale, chief operating officer at Rakuten Securities
Australia, said in a note.
“With the US threatening to increase tariffs to 25 percent from 10 percent
and the Chinese vowing not to react to ‘blackmail’ to get them back to the
negotiating table, this could be the catalyst that tips sentiment and some
markets into a tailspin to the downside, especially as we enter the lower
liquidity holiday trading season.”
Asian markets sank Thursday on mounting trade war fears after the US warned it was looking at more than doubling threatened tariffs on a range of Chinese imports.
Shanghai and Hong Kong led losses after Donald Trump’s Trade Representative Robert Lighthizer confirmed earlier reports that the White House was considering hiking levies to 25 percent from the announced 10 percent on $200 billion of Chinese goods.
“We have been very clear about the specific changes China should undertake. Regrettably, instead of changing its harmful behaviour, China has illegally retaliated against US workers, farmers, ranchers and businesses,” Lighthizer said.
His statement comes after separate reports said the two sides were looking to restart talks to avert a trade war between the world’s top two economies that could hammer global growth.
In response to earlier reports that the US was considering the move, Chinese foreign ministry spokesman Geng Shuang warned Wednesday that “blackmail and pressure from the US side will never work on China”.
The latest developments come as Washington considers imposing tariffs on
$16 billion of goods in the coming weeks, having already targeted imports
worth $34 billion last month.
Investors are left guessing about how the crisis will play out, with some
worrying that with both sides digging in there could be more pain down the
line, but others saying Trump is playing tough as a negotiating tactic.
“Markets are now wary of the next step in the trade war between the US and
China,” Nick Twidale, chief operating officer at Rakuten Securities
Australia, said in a note.
“With the US threatening to increase tariffs to 25 percent from 10 percent
and the Chinese vowing not to react to ‘blackmail’ to get them back to the
negotiating table, this could be the catalyst that tips sentiment and some
markets into a tailspin to the downside, especially as we enter the lower
liquidity holiday trading season.”
