Trump prepares more tariffs as China retaliates

Dow tumbles more than 500 points as China retaliates on tariffs

The Dow Jones Industrial ended at 25,324.99, down more than 615 points, or 2.4 per cent.

After major indexes in the U.S. plummeted at least 2% on Monday, Chinese and Japanese stocks followed suit.

Tech shares saw the S&P 500 advance by 0.4 percent. The Nasdaq Composite Index tumbled 3.4 per cent, the largest drop since Dec 4.

"The reason we're seeing this recovery is because fundamentals haven't changed", said Kevin Miller, CIO at E-Valuator Funds.

A stumbling block has been US insistence on an enforcement mechanism with penalties to ensure Beijing carries out its commitments. -China trade deal could happen soon and are bracing their portfolios for a more prolonged battle that could hamper global growth.

The euro rose to $1.1236 from $1.1223.

Coca-Cola shares bubbled up 1.33% on Tuesday after analysts at Morgan Stanley turned bullish on the stock, while Ralph Lauren closed 3.69% softer despite posting a first-quarter sales and profits beat.

Sydney and Singapore each dropped 0.9 percent, with Manila and Jakarta both down 1.4 percent.

Researchers calculated the cost of the trade war on families by estimating the total value of the increased price of goods and services after the tariffs are implemented and dividing that by the average number of families of four.

"As China's economic and geopolitical rise butts up against existing United States interests, eleventh hour negotiations and brinkmanship will be a recurring theme which the markets will learn to price in", they said.

North Korea demands return of cargo ship seized by US
In recent weeks, North Korea has resumed testing ballistic missiles after refraining from such launches for a year-and-a-half. US officials have shrugged off the three short-range missile tests, saying the door remains open for talks with the North.

Interested in China? Add China as an interest to stay up to date on the latest China news, video, and analysis from ABC News.

On Monday, China said it would impose higher tariffs on a range of U.S. goods, including frozen vegetables and liquefied natural gas, striking back in its trade war with Washington after Trump warned it not to. The list of targeted goods ranges from TV cameras to tequila, and includes a range of agricultural products.

"Out of the billions of dollars that we're taking (in on tariffs on Chinese imports), a small portion of that will be going to our farmers, because China will be retaliating, probably to a certain extent, against our farmers", Trump said.

While the S&P 500 fell 2.4% on Monday in its biggest daily percentage loss since January 3, U.S. Treasury yields dropped to six-week lows.

"A clear hardening of attitudes, with state media blaring that China 'will fight to the end, ' has stirred concerns of a protracted and widening trade war", Mizuho Bank said in a commentary. But added that the "window to avoid further escalations in US/China tensions is closing fast".

Providing some support for Asian markets were comments from Trump late on Monday that trade talks with China are "going to be very successful".

Trump tweeted, "I say openly to President Xi & all my many friends in China that China will be hurt very badly if you don't make a deal because companies will be forced to leave China for other countries".

Also Monday, Trump said he still was considering whether to go ahead with penalties on the additional $300 billion of Chinese goods.

He also argued that China "buys MUCH less from us that we buy from them, by nearly $500bn, so we are in a fantastic position", adding: "We can make a deal with China tomorrow, before their companies start leaving so as not to lose U.S. business, but the last time we were close they wanted to renegotiate the deal".

Related News:



Most liked

The Last Watch Trailer Reminds There’s a Documentary After the Series Finale
The Last Watch will follow the cast and crew as they deal with weather vagaries and dodge spoiler-hungry fans. The flick, directed by Jeanie Finlay, will chronicle the most expensive, complicated and epic season yet.

German Police Investigating Bizarre Deaths By Crossbow
Employees found the bodies of a 53-year-old man and two women aged 30 and 33 in a room in a guest house alongside two crossbows. The man and 33-year-old woman were found lying together in bed, while the younger woman was found lying on the floor.

Daniel Craig Injured on 'Bond 25′ Set, Movie Suspends Filming
He was apparently sprinting on the set when he slipped and fell, and has now been sent to the United States for x-rays. Bond's arch-enemy will be played by Oscar-winner Rami Malek, who starred as Freddie Mercury in Bohemian Rhapsody .

UN to report Tuesday on rebel withdrawals from 3 Yemen ports
The UN Security Council is due to hear a briefing on Hodeida on Wednesday - a day after the rebel withdrawal is expected to be completed.

Baytown officer fatally shoots woman after struggle over Taser
Police also said the woman, whose name has not yet been released, is someone they've dealt with in the past. Dorris says the officer opened fire after the woman grabbed the officer's Taser and used it against him.

Felicity Huffman Weeps as She Pleads Guilty in College Admissions Scandal
Singer pleaded guilty in March to racketeering, money laundering; conspiracy to defraud the U.S. , and obstruction of justice. Seventeen other parents, including Loughlin, have chose to fight the charges and formally submitted not guilty pleas .

Cruise Passengers Killed As Planes Collide In Mid-Air
There were 11 people on one plane, and Petty Officer Jon-Paul Rios says the 10 injured were from that plane, one critically. Ten other passengers have been taken to hospital following the incident on Monday near the town of Ketchikan.

MPs call for Jeremy Kyle Show to be axed after man's death
Ms Callaghan said Mr Dymond had been "quietly struggling", but praised the show's team for their after-care efforts. She told The Sun: 'They were brilliant. "They were really persistent in offering him help".

USA targets $300B of Chinese goods for new tariff hikes
He added that "Many companies are leaving China so that they will be more competitive for United States of America buyers". But that just takes into account the increased cost of buying things produced in China.

Nigel Farage: I’ll make eighth bid to become an MP
The bigger question will be how the European Union parliamentary elections translate into national politics and future general elections.

Tiger Woods, amid lawsuit, says death of former employee a 'terrible ending'
Immesberger worked at The Woods restaurant in Jupiter, Florida, and is said to have known the golfer personally. His blood alcohol level was more than three times over the legal limit for driving at the time of his death.

Antoine Griezmann Confirms He's Leaving Atletico Madrid
Since 2014, he's been at Atletico and has scored 133 goals in 252 games for the club, winning three trophies. A native of Macon, France , the 28-year-old World Cup victor joined Atleti in 2014 from Real Sociedad .

Frank Lampard: Derby County can do far better
Leeds United beat Derby County 1-0 today in the first leg of their Championship play-off semi-final at Pride Park. Duane Holmes is available after coming off with 20 minutes left at Pride Park.

Saudi Tanker Attack Reveals Oil Market Weakness
Falih said the attack aimed to undermine maritime freedom and "security of oil supplies to consumers all over the world". The Saudi vessels were identified as the VLCC tanker Amjad and crude tanker Al Marzoqah, both owned by Bahri.

Republicans Slam Rep. Tlaib for Holocaust Remarks
Cheney's quote, meanwhile, says nothing about the " calming feeling " portion of Tlaib's statement at all. "Democrat Rep. But they did it in a way that took their human dignity away and it was forced on them", Tlaib said in the podcast .