logo
China ready to 'fight' US trade war

China ready to 'fight' US trade war

Express Tribune09-04-2025

The flags of China and the US. PHOTO: ANADOLU AGENCY
China vowed on Tuesday to "fight to the end" after US President Donald Trump threatened to further ramp up tariffs but the EU warned against escalating a trade war as hard-hit global markets steadied.
Trump has upended the world economy with sweeping tariffs that have raised the spectre of an international recession, but has ruled out any pause in his aggressive trade policy despite a dramatic market sell-off.
Beijing — Washington's major economic rival but also a key trading partner -— responded by announcing its own 34 percent duties on US goods to come into effect on Thursday, deepening a showdown between the world's two largest economies.
The swift retaliation from China sparked a fresh warning from Trump that he would impose additional levies of 50 percent if Beijing refused to stop pushing back against his barrage of tariffs — a move that would drive the overall duties on Chinese goods to 104 percent.
"I have great respect for China but they cannot do this," Trump said at the White House. "We are going to have one shot at this... I'll tell you what, it is an honour to do it."
China swiftly hit back, blasting what it called "blackmailing" by the United States and vowing "countermeasures" if Washington imposes tariffs on top of the 34 percent extra that were due to come in force on Wednesday.
"If the US insists on going its own way, China will fight it to the end," a spokesperson for Beijing's commerce ministry said on Tuesday.
In a mounting war of words between Beijing and Washington, China's foreign ministry also condemned "ignorant and impolite" remarks by US Vice President JD Vance in which he complained the United States had for too long borrowed money from "Chinese peasants".
The ministry said that "pressure, threats and blackmail are not the right way to deal with China".
The European Union sought to cool tensions, with the bloc's chief Ursula von der Leyen warning against worsening the trade conflict in a call with Chinese Premier Li Qiang.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Wall Street set to open higher as US-China trade talks begin
Wall Street set to open higher as US-China trade talks begin

Business Recorder

time40 minutes ago

  • Business Recorder

Wall Street set to open higher as US-China trade talks begin

Wall Street's main indexes were set to open higher on Monday as investors watched a fresh round of negotiations between the United States and China aimed at mending a trade rift that has rattled financial markets for much of the year. Top officials from both countries have begun discussions at London's Lancaster House, a U.S. source said, as they look to address disagreements around a preliminary trade agreement struck last month that had briefly cooled tensions between the world's largest economies. The meetings come four days after U.S. President Donald Trump and Chinese leader Xi Jinping spoke by phone, their first direct interaction since Trump's January 20 inauguration. The leaders had, however, left key issues unresolved for future talks. 'The talks will have to go on for some time before we decide whether or not there's actual progress being made, however, most investors remain hopeful that there will be some positive results,' said Peter Andersen, founder at Andersen Capital Management. White House economic adviser Kevin Hassett told CNBC in an interview on Monday the U.S. trade negotiators are seeking a handshake in London to seal an agreement struck by Trump and Xi to allow the export of China's rare earth minerals and magnets to the United States. The benchmark S&P 500 closed above 6,000 on Friday for the first time since Feb. 21, following a better-than-expected jobs report and a rebound in Tesla's shares. Wall Street rises on jobs data optimism; Tesla rebounds Hopes of more trade deals between the U.S. and its major trading partners, along with upbeat earnings and tame inflation data, helped U.S. equities rally in May, with the S&P 500 and the tech-heavy Nasdaq notching their best monthly gains since November 2023. The S&P 500 remains a little over 2% below all-time highs touched in February, while the Nasdaq is about 3% below its record peaks reached in December. Citigroup joined major brokerages in raising its year-end target for the S&P 500, citing renewed optimism in corporate earnings resilience and the accelerating momentum of artificial intelligence-driven growth. It sees the benchmark ending the year at 6,300, compared with 5,800 forecast previously, according to a note late on Friday. Major data releases this week include readings on May consumer prices and initial jobless claims. While investors widely expect the Federal Reserve to keep interest rates unchanged next week, focus will be on any signs of pick-up in inflation as Trump's tariffs risk raising price pressures. Traders currently expect 46 basis points of rate cuts by the end of 2025 and are pricing in a 55% chance of a 25 bps cut in September, according to data compiled by LSEG. At 08:34 a.m. ET, Dow E-minis were up 46 points, or 0.11%, S&P 500 E-minis were up 9.5 points, or 0.16%, and Nasdaq 100 E-minis were up 19.25 points, or 0.09%. Most megacap and growth stocks were mixed in premarket trading. Tesla shares fell 1.7% after a report said Baird downgraded the stock to 'neutral' from 'outperform'. Robinhood Markets fell 3.3% after the S&P 500 kept index constituents unchanged in its latest rebalancing, contrary to some analysts who had expected the online brokerage to join the benchmark index. Warner Bros Discovery shares jumped 8.6% after the company said it would separate its studios and streaming business from its fading cable television networks. Shares of Sunnova Energy slumped 28.4% after the company filed for Chapter 11 bankruptcy protection.

Oil prices steady ahead of US-China trade talks
Oil prices steady ahead of US-China trade talks

Business Recorder

timean hour ago

  • Business Recorder

Oil prices steady ahead of US-China trade talks

LONDON: Oil prices were stable on Monday as investors awaited U.S.-China trade talks in London in the hope that a deal could boost the global economic outlook and subsequently fuel demand. Brent crude futures gained 11 cents, or 0.2%, to $66.58 a barrel by 1312 GMT while U.S. West Texas Intermediate crude rose by 6 cents, or 0.1%, to $64.64. Brent rose 4% last week and WTI 6.2% as the prospect of a U.S.-China trade deal boosted risk appetite for some investors. U.S. President Trump and China's leader Xi Jinping spoke on the telephone on Thursday before U.S. and Chinese officials meet in London on Monday in an effort to calm trade tensions between the two nations. A trade deal between the U.S. and China could support the global economic outlook and in turn boost demand for commodities including oil. Saudi Arabia cuts July oil prices to Asia to 4-year low after OPEC+ supply boost Monday's talks could dampen the impact on prices of a slew of Chinese data releases, said IG market analyst Tony Sycamore. Chinese export growth slowed to a three-month low in May as U.S. tariffs curbed shipments while factory gate deflation deepened to its worst in two years, heaping pressure on the world's second-largest economy at home and abroad. 'Bad timing for crude oil, which was testing the top of the range and knocking on the door of a technical break above $65,' Sycamore said, referring to WTI prices. The data also showed that China's crude oil imports declined in May to the lowest daily rate in four months as state-owned and independent refiners began planned maintenance. The prospect of a potential China-U.S. trade deal outweighed concern over the price impact from increased output by the OPEC+ group of oil producers next month.

Chinese and Hong Kong stocks gain ahead of Sino-US trade talks
Chinese and Hong Kong stocks gain ahead of Sino-US trade talks

Business Recorder

timean hour ago

  • Business Recorder

Chinese and Hong Kong stocks gain ahead of Sino-US trade talks

Hong Kong: Chinese and Hong Kong stocks edged higher on Monday, led by the rare earth and technology sectors, as investors awaited high-level U.S.-China trade negotiations in London. Investors were cautiously positive as the world's two largest economies seek to defuse their trade dispute, with China grappling with slow exports and deflation while the U.S. faces eroding confidence in its assets and economy. U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will meet China's Vice Premier He Lifeng in the first meeting under the two countries' economic and trade consultation mechanism. China's blue-chip CSI300 Index closed up 0.3% and the Shanghai Composite Index ended 0.4% higher. Hong Kong's benchmark Hang Seng advanced 1.6% to the highest level since March 21. The offshore yuan struggled for direction and was last traded at 7.1852 per dollar. Monday's meeting follows a rare leader-to-leader call between Chinese leader Xi Jinping and U.S. President Donald Trump on Thursday after tensions flared up again, with both sides accusing the other of violating a deal agreed last month. China, HK stocks close down as US-China call offers no clear progress on trade The two sides agreed a 90-day pause and a sharp reduction in tariffs after talks in Geneva in early May, which left U.S. tariffs on Chinese goods at 30% from May 14 to August 12 and Chinese duties on U.S. imports at 10%. That brought temporary relief from a trade war that could bring $600 billion in two-way trade to a standstill, disrupting supply chains and impacting the global economy. 'We think there could be some favourable outcomes from the meeting as Trump has hinted some positive signs,' analysts at China Securities said in a note, adding that any progress would offer markets some relief. Leading onshore markets higher on Monday, the strategically-important rare earths sector - expected to be a key focus of the talks - advanced 2.4% onshore in its best single-day performance in over a month. Technology shares led Hong Kong markets higher, with the Hang Seng Tech Index rising 2.8% to a one-month high. The subindex has gained over 20% since its April low, entering a technical bull market. Chinese stocks have been struggling for direction since April 2, when Trump announced sweeping 'reciprocal' tariffs that threatened to upend the global trade order. The CSI300 Index onshore has barely budged from the April 2 level, and the Hang Seng has gained around 4% during the period, both lagging the recovery among major global markets.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store