In this Jan. 2, 2018, file photo, a trader talks on his phone before the start of trading at the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Monday, June 18.
AP Photo/Mark Lennihan, File
Asian stocks tumble after new Trump tariff threat
Joe McDonald (Associated Press) - June 19, 2018 - 11:58am

BEIJING — Asian stocks tumbled Tuesday after U.S. President Donald Trump escalated a dispute with Beijing over technology policy by threatening a tariff hike on additional Chinese goods.

KEEPING SCORE: The Shanghai Composite Index fell 2.3 percent to 2,953.54 points and Hong Kong's Hang Seng lost 2 percent to 29,685.28. Tokyo's Nikkei 225 retreated 0.9 percent to 22,482.89 and Seoul's Kospi lost 0.8 percent to 2,356.57. Markets in Taiwan, New Zealand and Southeast Asia also declined. Sydney's S&P-ASX 200 gained 0.3 percent to 6,123.00.

TRADE TENSIONS: Trump directed the U.S. Trade Representative to prepare new tariffs on $200 billion in Chinese imports, stepping up a dispute companies and investors worry could drag down global trade and economic growth. Trump accused Beijing of being unwilling to resolve the dispute over complaints it steals or pressures foreign companies to hand over technology. China's Commerce Ministry criticized the White House action as blackmail and said Beijing was ready to retaliate.

ANALYST'S TAKE: "President Donald Trump's unwillingness to back down became apparent this morning, once again sinking markets into a risk-off atmosphere," said Jingyi Pan of IG in a report. "Attention now turns to China for the country's response towards the latest accusations from the White House, but mostly signs of further retaliation."

WALL STREET: U.S. stocks finished mixed in trading that ended before Trump issued his latest tariff threat. Household goods companies took some of the worst losses as the Standard & Poor's 500 index fell for the third time in four days. The S&P 500 fell 0.2 percent to 2,773.75. The Dow Jones industrial average dropped 0.4 percent to 24,987.47. The Nasdaq composite edged up 0.65 points to 7,747.03. The Russell 2000 index of small-cap stocks rose 0.5 percent to a record 1,692.46. Many investors feel smaller and more U.S.-focused companies are less vulnerable in the event of a major trade dispute.

ENERGY: Benchmark U.S. crude lost 26 cents to $65.59 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 79 cents on Monday to $65.85. Brent crude, used to price international oils, fell 41 cents to $74.93 per barrel in London. The contract rose $1.90 the previous session to $75.34.

CURRENCY: The dollar declined to 109.98 yen from Monday's 110.54 yen. The euro edged up to $1.1633 from $1.1623.

As It Happens
LATEST UPDATE: July 2, 2019 - 11:08am

U.S. and European trade chiefs are meeting hours before the U.S. is expected to impose tariffs on European steel and aluminum that could unleash a trade war.

U.S. Commerce Secretary Wilbur Ross told Le Figaro newspaper that a decision on tariffs would likely come after markets close Thursday. The U.S. decision is likely to be to impose tariffs, though there is slim hope that the two sides could reach a last-minute agreement.

Ross met Thursday morning in Paris with French Finance Minister Bruno Le Maire, whose government has vigorously objected to tariffs.

And U.S. Trade Representative Robert Lighthizer is meeting in Paris on Thursday with EU Trade Commissioner Cecilia Malmstrom among other international trade chiefs.

In his Le Figaro interview, Ross said the Americans are still open to discussion, and the EU would be to blame for any trade war if it imposes retaliatory tariffs as expected. — AP

July 2, 2019 - 11:08am

The United States proposes $4 billion in tariffs on a range of European Union products -- including parmesan cheese and Scotch and Irish whiskey -- over subsidies for commercial aircraft.

The list also includes sausages, hams, pasta, olives and many other cheeses including reggiano, provolone, edam and gouda.

"Today, the Office of the US Trade Representative is issuing for public comment a supplemental list of products that could potentially be subject to additional duties," it says in a statement.

The potential tariffs are due to "EU subsidies on large civil aircraft," the statement says.

April 9, 2019 - 6:16pm

The EU says the sum of $11.2 billion demanded by the US in tariff counter-measures on a host of European products was exaggerated, as a simmering transatlantic trade row risked escalating.

"The EU is confident that the level of countermeasures on which the notice is based is greatly exaggerated," a European Commission source says, in response to the fresh US tariffs threatened in response to subsidies for Europe's plane-making giant Airbus. — AFP

April 9, 2019 - 9:19am

The US threatens to impose tariff counter measures of up to $11.2 billion on a host of European products in response to subsidies received by aircraft maker Airbus.

In a statement, the office of the US Trade Representative says the World Trade Organization had repeatedly found that EU subsidies to Airbus have caused adverse effects to the United States. — AFP

February 21, 2019 - 12:03pm

US President Donald Trump has threatened to impose tariffs on European auto imports if he is unable to strike a trade deal with the EU.

"We're negotiating. If we don't make the deal, we'll do the tariffs," Trump says in response to a question on new tariffs. — AFP

September 27, 2018 - 1:56pm

From Ford to Walmart to Procter & Gamble, a growing number of iconic American companies are warning that President Donald Trump's tariffs on U.S. imports are raising their costs and prices. — AP

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