Economy

Trump may slap tariffs on all $505 bn of Chinese imports

Trump may slap tariffs on all $505 bn of Chinese imports

MORE TARIFF TALK: In a taped interview with the business channel CNBC, Trump said "I'm willing to go to 500", referring roughly to the $505.5 billion in goods the USA imported previous year from China.

In the latest trade salvo, Trump said he was ready to impose tariffs on all $500 billion of imported goods from China.

Since that point, Trump has opened up trade battles on a series of fronts, and the USA and other countries around the world have slapped tariffs on $85 billion worth of goods. All the while, such a deal could put Trump in a position to compete with his hated European rivals to see who is more willing to cut a new trade deal with China that would allow foreign goods to more rapidly enter the Chinese market.

Given the smaller size of China's U.S. imports (US$155 billion in 2017), retaliatory action - should it occur - might include larger tariffs but could also include a variety of non-tariff measures including guiding state-owned enterprises away from USA products and services. The British pound strengthened 0.9 percent to $1.3136. Meanwhile, both Enbridge and TransCanada saw losses of more than 2 per cent, surrendering some of their gains on Thursday, when a US regulatory decision inspired thoughts that the taxation on USA pipelines would be eased. If the yuan continues to depreciate, goods exported to China will become more expensive to consumers there. The euro rose to $1.1726 from $1.1644.

China, the European Union and others have been manipulating their currencies and interest rates lower, while the U.S.is raising rates while the dollars gets stronger and stronger with each passing day - taking away our big competitive edge.

Fears are growing over a fierce global trade war, after Trump's imposition of hefty import taxes on steel and aluminum from the EU, Canada and Mexico, in addition to levies already on goods from China worth tens of billions of dollars that have sparked retaliatory tariffs.

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Despite Trump's claim, the yuan has been rising steadily if gradually in recent years, as most economists and officials say Beijing actually has been intervening in currency markets to keep the currency from weakening. Italian 10-year yields increased eight basis points to 2.59 percent. The chance inflation might accelerate has increased after the massive tax cut Trump championed past year, which has raised the USA debt and budget deficit. Chinese exports would also be relatively cheaper, possibly balancing out suggested increases in tariffs by the Trump Administration.

The world's two largest economies are locked in a trade confrontation with no end in sight after the United States early this month imposed 25 per cent tariffs on approximately US$34 billion of Chinese mechanical and technological products.

West Texas Intermediate crude rose for a fifth day, climbing 1 percent to $70.46 a barrel.

Benchmark U.S. crude added 1.4 percent to $70.46 a barrel in NY and Brent crude, used to price global oils, gained 0.7 percent to $73.07 a barrel in London. South Korea's Kospi added 0.3 percent and Hong Kong's Hang Seng gained 0.8 percent. The U.K.'s FTSE 100 Index was little changed. Natural gas lost 0.4 percent to $2.76 per 1,000 cubic feet.

Japan's Nikkei 225 bucked the regional trend, losing 0.3 per cent to 22,697.88.