Source: Sharecast
As Trump slapped a 10% tariff on Chinese exports, the world’s second-largest economy hit back with 15% levies on coal and liquefied natural gas along with 10% on crude oil, farm equipment, large-displacement vehicles and pickup trucks from the US.
China’s commerce ministry also said it was imposing export controls on key minerals: tungsten, tellurium, ruthenium, molybdenum and ruthenium-related items in order to “safeguard national security interests”.
“The unilateral imposition of tariffs by the US seriously violates the rules of the World Trade Organization,” the finance ministry said in a statement.
“It is not only unhelpful in solving its own problems but also damages the normal economic and trade cooperation between China and the US.”
In addition, the US companies PVH Group and Illumina were added to China’s unreliable entity list, exposing them to restrictions or penalties. Clothing company PVH owns the Tommy Hilfiger and Calvin Klein labels. Illumina is a biotech company specialising in genomic sequencing.
Trump axed an exemption on Chinese imports worth less than $800, apparently aimed at discount retailers such as Shein and Temu.
Meanwhile planned 25% tariffs on Mexico and Canada were paused for 30 days after separate talks between the rampaging Trump and leaders of the other two nations.
Canada’s Prime Minister Justin Trudeau said he would implement a $1.3bn border plan – although this was announced two months ago - and appoint an official to deal with the smuggling of the illegal drug fentanyl into the US, although official statistics revealed only 43 pounds of the substance was seized by customs on the northern border last year compared with 21,000 coming in from Mexico.
Mexico’s president Claudia Sheinbaum offered to send 10,000 troops to the border with the US to deal with the large drug trade north.
Trump's behaviour sent markets reeling on Monday. Economists believe most of his measure will be inflationary for Americans and force the US Federal Reserve into rethinking its timetable for interest rate cuts - despite the fact that the president has promised to lower prices and called on the central bank to cut rates.
Reporting by Frank Prenesti for Sharecast.com