£150bn cost of trade war
Pensions blow as stocks slump over US-China battle
CHINA has struck back in a looming trade war by threatening to impose tariffs on $50billion worth of US-made imports.
Beijing’s retaliation wiped nearly £150billion off share prices yesterday, hitting pension fund investments.
China, led by Xi Jinping, warned it would put a 25% levy on 106 US products, from aircraft to orange juice.
It came hours after US President Donald Trump’s administration detailed plans for 25% tariffs on more than 1,300 Chinese-made goods from aircraft parts to cars, TVs and more.
Trouble began brewing in March when Trump decided to impose 25% tariffs on steel and aluminium.
China’s tariffs hit products largely from Republican party-dominated states. Beijing said: “China has never succumbed to external pressure.”
Trump pushed ahead with threats despite opposition from many of the US’s most powerful firms, such as General Electric and Goldman Sachs.
The most significant US export that could be hit are the £9billion of soyabeans sold to China.
The escalation sent shockwaves through stock markets. The UK’s FTSE 100 ended marginally up, but US and European markets fell sharply. Yet Trump later denied a trade war, tweeting: “That war was lost many years ago by the foolish, or incompetent, people who represented the US.”
Satyam Panday, of rating agency Standard & Poor’s, said: “Tit-for-tat uncertainty shakes confidence.”
25% Tariff China is to slap on 106 US products, including cars, planes, orange juice and
25 % US has put same tariff on Chinese products including cars & TVs