FAQ: US and China trade tariffs. Is a trade war next?

FAQ: US and China trade tariffs. Is a trade war next?

China on Wednesday issued a $50 billion list of US goods including soybeans and small aircraft for possible tariff hikes in an escalating technology dispute with Washington that companies worry could set back the global economic recovery.

The statement said China has suspended duty concessions on imported goods originating from the United States, and has imposed a duty rate of 15 percent on 120 items of imports, such as fruits and products.

Wall Street had plunged around two per cent on Monday after China slapped tariffs on 128 USA exports worth $3 billion including fruit and pork.

Mr Geng said China had referred the United States to the World Trade Organization.

The tweet came after the U.S. and China announced tit-for-tat tariffs on products from each other. It's down nearly 5 percent since March 1 as investors have focused on tariffs as well as controversies surrounding technology companies including Facebook.

Tech stocks have added to the recent volatility, mostly due to controversies surrounding technology companies like Facebook.

Trump has been miffed over allegations China is ripping off USA products, sparking a new wave of tariffs imposed Tuesday.

The Commerce Department is also due to release its report on new orders for manufactured goods in the month of February. On Monday, the S&P 500 fell 2.2 percent. He said that will stir up political pressure against the trade sanctions.

Overall, Asian stock market losses were not as bad as first feared at the open, with stocks across the region clawing back ground later in the session.

US Treasuries slipped, lifted yields on the 10-year note one basis point higher to 2.78 percent.

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After a big early loss, USA crude dipped 14 cents to $63.37 a barrel in NY while Brent crude, used to price global oils, fell 10 cents to $68.02 a barrel in London.

Jack Daniel's maker Brown-Forman Corp BFb.N slipped about 1 percent before recovering after whiskey was singled out as the only spirit on which China planned to impose more tariffs.

While critics have complained the administration's policies risk starting a trade war, Trump argued in a post on Twitter that the war had already been lost.

"Risk of further escalation remains and global financial markets will be the collateral damage until cooler heads emerge", said Norman Chan, chief investment officer at Oreana Private Wealth.

When he signed the tariffs into effect on March 8, Trump exempted Canada and Mexico and gave other countries the chance to argue why they should also be exempted.The S&P 500 rose 0.45 percent and 1.74 percent on March 8 and 9 before beginning a four-day slide the following week.

Commenting on the Trump administration's tariffs, WHO Director-General Roberto Azevedo condemned the move, saying that disrupting bilateral trade would "jeopardize the global economy at a time when economic recovery, though fragile, has been increasingly evident around the world", as cited by the. "Agriculture survives based on experts, and if we lose that opportunity, it's going to be a deep problem for agriculture and rural communities", Jim Byrum, of the Michigan Agri-Business Association, said.

Bond prices turned lower.

US benchmark 10-year notes fell 2/32 in price to yield 2.7917 percent.

The rising trade rhetoric saw the dollar buckle to 106.16 yen, after edging up from a low of 105.70 on Tuesday. Against the euro, the dollar is valued at $1.2283 compared to yesterday's $1.2270.

In commodities trading, crude oil futures are tumbling $1.01 to $62.50 a barrel after climbing $0.50 to $63.51 a barrel on Tuesday.

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