· The dollar fell against the yen and Swiss franc on Tuesday after U.S. President Donald Trump’s threats of additional tariffs on China escalated a trade spat between the world’s two largest economies in a worrying sign for global growth prospects.
China’s yuan fell to a more than 5-month low to the dollar, despite a firmer official yuan midpoint, as market sentiment soured.[CNY/]
The yuan slid to a low of 6.4490 to the dollar at one point, its weakest since Jan. 15.
The Japanese yen JPY= climbed 0.8 percent against the dollar to 109.64 yen, its highest level in a week, after Trump threatened to impose a 10 percent tariff on $200billion of Chinese goods, ratcheting up a trade dispute with Beijing.
The euro EUR= bounced back slightly to $1.1623 after hitting a two-week low of $1.1541 Friday.
· U.S. President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods, prompting a swift warning from Beijing of retaliation, as the trade conflict between the world’s two biggest economies quickly escalated.
It was retaliation, he said, for China’s decision to raise tariffs on $50 billion in U.S. goods, which came after Trump announced similar tariffs on Chinese goods on Friday.
· President Donald Trump’s tariff battle with key buyers of U.S. apples, soybeans and corn threatens the support of some of his biggest backers - U.S. farmers now seeing their livelihoods in jeopardy.
China’s tariffs could contribute to a 30 percent drop in income for Ohio corn and soybean farmers this year, said Ben Brown, manager of an Ohio State University farm program.
If the tariffs stay in place, net farm income in Ohio could drop as much as 63 percent in 2019, he said.
· Chinese media have mocked US President Donald Trump over plans to impose 25% tariffs on $50bn worth of Chinese goods, saying "wise men build bridges but fools build walls".
Mr Trump announced the tariffs on Friday, accusing Beijing of intellectual copyright theft.
China retaliated, saying it would impose an additional 25% tariff on 659 US goods worth $50bn.
Stock markets fell after the announcements amid fear of a trade war.
The US had earlier warned that it will impose even more tariffs should China retaliate.
Mr Trump said the tariffs were "essential to preventing further unfair transfers of American technology and intellectual property to China, which will protect American jobs."
The Chinese product lines that have been hit range from aircraft tyres to turbines and commercial dishwashers.
The media response came as China announced tariffs on $34bn of US goods including agricultural products, cars and marine products which will also take effect from 6July.
Tariffs on other US goods will be announced at a later date, Xinhua said.
US tariffs that affect more than 800 Chinese products worth $34bn in annual trade are due to come into effect on 6 July.
· North Korean leader Kim Jong Un arrived in Beijing on Tuesday, where he will likely brief Chinese President Xi Jinping on his summit with U.S. President Donald Trump last week, as Washington and Seoul agreed to suspend a major joint military exercise.
In an unusual move, Chinese state media announced Kim’s visit and said he would stay for two days. Previously China would only confirm Kim had visited after he had left the country. No other details were provided.
· China will soon announce a further opening of sectors to foreign investment, the China Securities Journal reported on Tuesday, extending a years-long effort to liberalize capital markets and loosen investment rules in the world’s second-biggest economy.
· China's Commerce Ministry said on Tuesday morning that it will take counter measures if the U.S. publishes an additional tariffs list.
In a statement posted on its website, the ministry said China will protect its interests, taking both quantitative and qualitative measures against the move.
The fresh threats of additional tariffs violate prior negotiations and consensus reached between the two countries, the Chinese Commerce Ministry said. A trade war hurt companies and people in both countries, it added in the Chinese statement.
· The head of Japan’s steel industry group on Tuesday said he was worried that an escalating trade spat between the United States and China would lead to a “collapse” of order in global trade.
Rising trade tensions between the two countries were a matter of “great concern”, Japan Iron and Steel Federation Chairman Koji Kakigi told a news conference.”If intensifying trade conflicts trigger further import duties, that may lead to a collapse of order in global trade at its core,” he said.
U.S. President Donald Trump threatened on Monday to impose a 10 percent tariff on $200 billion of Chinese goods, escalating a tit-for-tat trade war with Beijing.
· Oil prices fell nearly one percent on Tuesday as an escalating trade dispute between the United States and China triggered sharp selloffs in many global markets.
Brent crude futures LCOc1 were at $74.69 per barrel at 0646 GMT, down 65 cents, or 0.9 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $65.24 a barrel, down 61 cents, or 0.9 percent.
Reference: Reuters, CNBC
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