China hits back in trade war with US

China has said it will impose tariffs on $60B of U.S goods from 1 June, extending a bilateral trade war.

The move comes three days after the US more than doubled tariffs on $200bn of Chinese imports.

Earlier, US President Donald Trump denied that US consumers would pay for higher tariffs on Chinese imports and warned China not to follow suit.

But Beijing said it would not swallow any “bitter fruit” that harmed its interests.

“China should not retaliate – will only get worse!” Mr Trump tweeted shortly before news of the Chinese decision came.
Mr Trump also said China had “taken so advantage of the US for so many years”.

He added that US consumers could avoid the tariffs by buying the same products from other sources.
“Many tariffed companies will be leaving China for Vietnam and other such countries in Asia. That’s why China wants to make a deal so badly!” he said.

Following the Chinese announcement, stocks on Wall Street fell in pre-market trading, VIX up +25% today, along with Treasury futures and gold.

BBC

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell