Global

China impose new tariffs on US

China impose new tariffs on US

Eastern time. The Dow Jones industrial average lost 623 points, or 2.6 percent, to 23,480. The Russell 2000 index of smaller-company stocks fell 34 points, or 2.3 percent, to 1,494.

The price of gold climbed 1.2 percent to $1,343.60 an ounce and silver jumped 2 percent to $16.60 an ounce as some investors took money out of stocks and looked for safer investments. All do big business with China. Starting Monday, China is increasing the tariff rate on eight imported US products, including pork, by 25 percent.

The Chinese government hit back Monday at President Donald Trump's tariffs on steel and aluminum by acting on a threat to put tariffs as high as 25 percent on imports of 128 US -made products, including pork and seamless steel pipes. It proposed 25 percent tariffs on Chinese products including aerospace, communications technology and machinery and said Washington will step up restrictions on Chinese investment in key USA technology sectors.

Trump imposed a 25% tariff on imported steel and a 10% tariff on imported aluminum. In fact, China imposes relatively high barriers on many imports and on foreign investment in many sectors.

China's Ministry of Commerce (MOFCOM) said it was suspending its obligations to the World Trade Organization (WTO) to reduce tariffs on 120 U.S. goods, including fruit. It's a fairly small move but investors are anxious it could be step toward a trade war that harms global commerce and company profits.

The most recent occurred two weeks ago, when each of the three major USA indexes lost 5 to 6 percent of their value in five days. Beijing promised to respond quickly, however. He has announced plans to slap tariffs on about $50 billion worth of Chinese goods following an investigation by his administration into the theft of intellectual property from U.S. companies.

Trump has for years accused the Chinese government of unfair trade practices, which he says put USA companies at a disadvantage.

All told, the extra tariffs will hit 128 kinds of USA products, multiple outlets reported.

The dispute reflects the clash between Trump's promise to narrow the USA trade surplus with China - a record $375.2 billion a year ago - and Beijing's ambitious plans to develop Chinese industry and technology.

More news: Google Shutting Down goo.gl URL Shortener Next Year

The U.S. administration says China has systematically misappropriated American intellectual property - allegations China denies.

Trump administration officials have identified as potential targets 1,300 product lines worth about $48 billion.

Health insurer Humana was one of the market's few winners following more reports Walmart could buy the company or create a new partnership with it. Humana is a major provider of Medicare Advantage coverage for people 65 and older.

China's decision to put retaliatory tariffs on dozens of American imports will impact farmers across the U.S.

But "more relevant products in terms of value of USA exports can hardly be included if China wants to achieve its Manufacturing 2025 targets", it continued, referring to a 30-year plan to boost China's industrial base. With President Xi Jinping making moves to maintain his power indefinitely, and a recent meeting with North Korean leader Kim Jong-un, what is China's plan? That might be enough to push China to negotiate with Trump, but a trade war is unlikely to be as straightforward or as easy as Trump seems to think.

The Asian country was responding to blanket USA tariffs of 25% on steel and 10% on aluminum enacted in March under Section 232 of the 1962 Trade Expansion Act.

Nervous investors are hoping an unusually strong US earnings season can restore some of the optimism that characterized equity markets past year.

China, though, has always been the biggest trade target for Trump.