Time difference gives China head start on tariff war with U.S.

Time difference gives China head start on tariff war with U.S.

Time difference gives China head start on tariff war with U.S.

The first wave on US tariffs on $34bn of Chinese exports will take effect on July 6, according to a statement from the US Trade Representative, which didn't specify a time. Ambassador Richard Grenell reportedly told representatives from Volkswagen, Daimler and BMW about a USA proposal to reduce all auto tariffs. He said American orders have fallen 30 to 50 per cent compared with a year ago.

As the world's most powerful economy, the United States plays a vital role in global economic and trade rule-setting and it is always able to find seemingly plausible reasons for its initiative targeting China.

"This is going to be the dominant issue of the summer".

Trump himself tweeted this week that the economy is doing "perhaps better than ever" even "prior to fixing some of the worst and most unfair Trade Deals ever made by any country".

Canadian government bond prices were little changed, with the two-year flat to yield 1.913 per cent and the 10-year rising 1 cent to yield 2.162 per cent.

Sterling gained ground too as the head of the Bank of England confirmed it was still planning to raise United Kingdom rates this year.

They also worry the sparring between Washington and Beijing could fuel anti-American sentiment among Chinese consumers.

Beijing has pledged to retaliate with equal tariffs on $34 billion in US goods.

The United States is "opening fire" on the world with its threatened tariffs, China warned on Thursday, saying no one wants a trade war but it will respond the instant US measures go into effect, as Beijing ramped up the rhetoric in the heated dispute.

Therefore, to many, the trade war the U.S. sees intent on initiating is the country's strategy to keep China on the back foot so that it will not develop as fast as it otherwise would, and thus unable to challenge the dominant role of the USA in the global economic order.

MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.03 percent after declining 0.4 percent the previous day.

China's central bank moved to calm jittery financial markets on Tuesday after the yuan dropped through the psychologically significant 6.7 to the dollar mark, hitting its lowest in nearly a year.

China is expected to retaliate as soon as the United States tariffs go into effect, imposing duties on goods worth roughly the same amount but with a greater emphasis on politically sensitive agricultural products.

CURRENCIES: The dollar ticked up to 110.63 yen from 110.51 yen on Wednesday. A rebound was triggered in the past two sessions after the country's central bank sought to calm nervous markets and stem the recent tumble. "We recommend investors stay invested, but consider five actions: looking to alternatives, hedging equity exposure, improving credit quality, diversifying sector and country risks, and taking a longer-term view". China appears broadly comfortable with a weakening yuan and would intervene only to prevent any destabilizing declines or to restore market confidence, policy insiders told Reuters. Beijing is reportedly targeting United States products such as soybeans, seafood and crude oil.

"There are those who believe the US must lose and China must win", Li Xiao, a leading economics professor, said in a commencement speech last weekend at northern China's Jilin University.

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