Amid Trade War, Donald Trump Says US "Rebuilt" China

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US President Donald Trump concludes his remarks at a meeting of the National Space Council at the White House in Washington June 18, 2018.

USA stocks started Tuesday's session in a sea of red after President Donald Trump threatened to place tariffs on an additional US$200bn worth of Chinese imports.

The Trump tariffs, which the USA government says are punishment for intellectual property theft, will be enacted in two waves. With Trump's latest salvo, he has now threatened tariffs on up to US$450 billion in China's exports, out of a total of just over US$500 billion in goods sold to the United States.

"This is unacceptable", Trump added. How many tariffs are there now?

It gave no details, but China's lopsided trade balance with the United States means Beijing doesn't import enough American goods to stick with its strategy of matching the scale of Trump's tariff increases.

Reduced Chinese access for U.S. businesses could be a boon to other foreign companies in a year when China says it will further open its door to overseas investors and firms.

The move sent Asian markets sliding on Tuesday, with Shanghai closing down 3.78%, its biggest drop in two years, and Shenzhen down 5.31%, the Washington Post reported.

In New York, the Dow Jones industrial average ended down 287.26 points at 24,700.21. "Without growing US crude supply and exports, global prices could today be multiples higher than they now are".

Beijing: Beijing on Tuesday accused Donald Trump of "blackmail" and warned it would retaliate in kind after the U.S. president threatened to impose fresh tariffs on Chinese goods, pushing the world's two biggest economies closer to a trade war. The trade tensions have also raised concerns over a possible decline in energy demand.

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On March 1, the Trump administration announced a 25 percent global tariff on all imports of steel to the United States and a 10 percent tariff on all aluminum imports.

"You see what's happening with China". Some believe Trump is bluffing, contrary to Navarro's comments.

Trump said on Tuesday the two nations had a good relationship and could work out a trade agreement on their own.

An extreme Chinese response would be a trade embargo on a swathe of United States goods, but that would be inconsistent with China's rhetoric and actions if Beijing initiated such a move.

US stocks fell on Tuesday as a sharp escalation in the trade dispute between the United States and China rattled markets and put the Dow Jones Industrial Average back in negative territory for the year.

United States officials will hold a press conference on the decision to impose further tariffs on China this morning.

Beijing has mounted campaigns against Japanese and South Korean companies in the past after diplomatic disputes.

"Neither side will be brought to its knees - which is one reason to think the trade dispute could drag on", research firm Capital Economics said in a note to clients on Friday. He said the move would be in retaliation for China's decision to raise tariffs on $50 billion in us goods.

Initially, 545 USA products valued at $34 billion will be targeted by China, mimicking the Trump administration's tariff rollout. "They weren't going to unduly harm the consumer".