CHINA VOWS FIGHT
Trump nearly doubled duties on Chinese imports, which had been set at 54 per cent last week, in response to counter-tariffs that Beijing announced last week. China has vowed to fight what it views as blackmail.
Top Chinese brokerages have pledged to work together to help steady domestic share prices in response to the tariff-induced turmoil.
Economists have warned that US consumers are likely to face higher prices on everything from sneakers to wine as a result of the trade war.
The full effects of Wednesday’s tariffs may not be felt for some time, as any goods already in transit as of midnight will be exempt from the new levies as long as they arrive in the US by May 27.
Nearly three-quarters of Americans expect the prices of everyday items to rise in the next six months, a new Reuters-Ipsos poll found.
Trump’s earlier across-the-board 10 per cent tariffs on all imports from many countries began last Saturday. The latest round of duties, which took effect at 12.01am Eastern Time (4.01am GMT), are aimed at countries that are “ripping off” the US, according to Trump.
That list includes many of the United States’ closest allies, including the European Union, which was hit with a 20 per cent tariff.
Trump has said the tariffs are a response to barriers put on US goods that have stymied American businesses. He has also accused countries including Japan of devaluing their currencies to gain a trade advantage, something Tokyo denies.
Japan’s finance minister on Wednesday said trade negotiations with Washington could include foreign exchange rates.
Trump has signalled he may not be finished with tariffs.
In remarks to Republican lawmakers on Tuesday evening, he said he would soon announce “major” tariffs on pharmaceutical imports, one of a handful of categories of goods that have been exempted from the new taxes.
