China trade battle kicks off; markets take it in stride

An investor reacts to stock market information in Beijing as the US tariffs come into effect

Image An investor reacts to stock market information in Beijing as the US tariffs come into effect

"We have to be aware that we are only one tweet away from much broader tariffs becoming a reality", she said, adding that investors were trimming broad exposure to riskier assets.

That hurts U.S. soybean farmers and could also have an impact on makers of farm equipment, such as Deere & Co, whose stock has fallen 11.7 percent over the past month. "The math is simple". So you could put forward threats that would be painful to the USA if implemented, but we would never actually get there.

Soybeans are among the US products, along with orange juice, whiskey, electric cars and others, that are threatened by retaliatory tariffs from China.

Benchmark 10-year Treasury notes last rose 7/32 in price to yield 2.8145%, from 2.84% late on Thursday.

American apple growers are also concerned about the new export tariffs.

Touching on China's massive trade surpluses with the United States, Trump told his audience, "They've been killing us".

The United States and China slapped duties on $34 billion worth of each others' imports on Friday, escalating their conflict and suggesting there was little sign the dispute will soon end.

Despite three rounds of negotiations between the two sides, including a Chinese pledge to significantly increase purchases of American products, Trump chose to go ahead with the tariffs. America is the world's largest exporter of soy beans, and China is the world's largest consumer of them.

Those retaliatory tariffs are slated to take effect Friday, after Trump's tariffs go into effect. That means USA apple prices could take a serious dive, costing growers money.

When it comes to China, Trump believes Beijing is using "unfair" trade practices to gain an advantage on the U.S., including lax observation of intellectual property law.

"We see two different systems competing with each other: China's state-run capitalist order is pitted against our system of a free market economy".

"This will impact growers coast to coast", Grondine said.

Balaise Matuidi back in France's only change for semis
Eden Hazard has been directly involved in 14 goals in his last 14 games for Belgium (8 goals, 6 assists). For me, he is the best young footballer on the planet.

A solid pickup in hiring by United States employers last month also helped keep investors in a buying mood.

Later that day, China's foreign ministry spokesperson announced that China has begun implementing new tariffs of 25 percent on some USA goods including automobiles and soybeans.

Daimler, the carmaker behind Mercedes-Benz, already warned last month that its profits will fall this year.

"Such tariffs are typical trade bullying, and this action threatens global supply chains and value chains, stalls the global economic recovery, triggers global market turmoil, and will hurt more innocent multinational companies, enterprises, and consumers", the statement said. Daimler said those costs won't be completely passed on to customers.

It further claims that China's industrial policies, such as its "Made in China 2025" plan, harm companies in the United States and around the world.

Most companies likely have a 30-day supply of products they import from China on hand, the spokesperson said.

What sparks most worries is that China has shifted its focus to Russian Federation by nearly tripling soybean purchases from its northern neighbor.

"There are no winners in a trade war", the chamber's chairman, William Zarit, said in a statement.

Beijing vowed to take "necessary countermeasures" after the U.S. imposed 25 percent duties on about $34 billion in Chinese machinery, electronics and high-tech equipment, including autos, computer hard drives and LEDs.

The root of the conflict is the Trump administration's assertion that China has long used predatory tactics in a drive to supplant America's technological supremacy. The New York Times reported that China's list included soybeans, a major North Dakota export.

Correction: An earlier version of this article misstated the number of top soybean producing states that voted for Hillary Clinton in the 2016 election.

Latest News