Dollar, yuan recoil as U.S.-China trade row intensifies, yen gains

President Donald Trump and China's President Xi Jinping arrive for a state dinner in Beijing last year

Trump said the tariffs will go into effect if China refuses to change its unfair trade practices and insists on going forward with recently announced tariffs.

The sheer size of Trump's latest threat makes it impossible for an in-kind response from China since the value of the goods involved exceeds by US$70 billion the total value of United States imports to China past year, U.S. data shows.

Markets around the world fell after the news of the dramatic and sudden escalation.

It called Mr. Trump's tariff threat an "act of extreme pressure and blackmail" that "deviates from the consensus reached by both parties after many negotiations, and is a disappointment to the global community".

Analysts warned that the risks are growing of an increasingly damaging clash that will ripple around the globe. "While there is in principle still room for negotiation, attitudes seem to be hardening".

"Beijing will not panic in response to Trump's latest threat, but will be deeply concerned", Eurasia Group said in a report. The affected 818 Chinese imports was worth about $34 billion-a measure that would take place on July 6. China's tariffs would target agricultural products, cars and seafood, among other items. "Rather than altering those practices, it is now threatening United States companies, workers, and farmers who have done nothing wrong", Trump said.

Oil falls on rising output, escalating China-US trade spat
Non-OPEC members including Russia , Oman and Mexico also agreed to cut 558,000 bpd off their production to stabilise the market. Rob Thummel, managing director at asset management firm Tortoise said he "would recommend a small increase in production".

Oil fell ahead of a possible increase in OPEC crude supply and due to the trade dispute, as it was hurt by the rising dollar and China has threatened to impose tariffs on US crude exports.

This would come in addition to the tariffs on $50 billion worth of imports, should China retaliate; a move which effectively confirms that a damaging trade war is underway, leaving many questioning where the endpoint will be?

The S&P 500 also dropped 0.4 percent and the Nasdaq composite fell 0.3 percent as fears of a potential trade war with China flared up again following Trump's statement.

The planned new wave of tariffs would have to go through a similar process of public consultation and comment as the earlier ones before taking effect.

Beijing has offered to narrow its politically volatile trade surplus with the United States but has resisted changing development plans its leaders see as a path to prosperity and to restoring China's rightful role as a global leader.

China imported $129.89 billion of U.S. goods a year ago, while the USA purchased $505.47 billion of Chinese products, according to United States data.

France vs. Peru - Football Match Report
Peru: Gallese 7, Rodriguez 7, Trauco 6, Cueva 7, Guerrero 7, Ramos 6, Advincula 7, Carrillo 7, Yotun 6, Flores 7, Aquino 7. Not long after, Gallese denied Mbappe at the other end, saving from the striker's scrambled backheel effort.

"Faced with this heightened intimidation from the U.S., China has no choice but to fight back with targeted and direct measures aimed at persuading the U.S.to back off, since it appears that any concessions it makes will not appease the Trump administration, which wants to suck the lifeblood from the Chinese economy", the newspaper said.

In a speech to the Detroit Economic Club on Monday, Secretary of State Mike Pompeo accused China of "an unprecedented level of larceny," NPR's Michelle Kelemen reports.

Large U.S. companies with significant overseas business were hit especially hard. Shanghai stocks plunged to two-year lows.

Top US brands such as Apple, GM and Boeing generate large amounts of sales in China.

Speaking to CNBC's "Squawk Box Europe" on Tuesday, Nandini Ranakrishnan, global market strategist for J.P. Morgan, said the political realities of upcoming midterm elections could force the USA government to back away from a full-blown trade war. Oil futures pulled back as the dollar rose, with US crude seeing the deepest declines.

Supreme court rules states can collect sales tax from online retailers
A lack of sales tax online made it almost impossible for local stores to compete with their online rivals, South Dakota argued. Wayfair , granting them greater power to require out-of-state retailers to collect sales tax on sales to in-state residents.

Related news:

Hot News

isis-killer-beheading-video-story-top Magnificent Musa gives Nigeria victory over Iceland
Jun 23, 2018 - 13:17
As well as starting with Musa, he opted to play captain John Obi Mikel in a more defensive role in midfield. This is how this group is going to be played , he said. "We know what the stakes are - we have to win".

isis-killer-beheading-video-story-top Melania Trump Sets Off To Visit Detained Kids Wearing Bizarre Coat
Jun 23, 2018 - 06:17
Donald Trump , however, tweeted that his wife's jacket was indeed meant to send a message, but not about the immigrant children. If you've been lucky enough to avoid the internet entirely these past 24 hours, it said " I really don't care, do U? " on it.

isis-killer-beheading-video-story-top Switzerland's late victor over Serbia throws World Cup's Group E wide open
Jun 23, 2018 - 04:29
Shaqiri was born in Kosovo, the former Serbian province that declared independence in 2008. Tensions have been building in Serbia before the Group E match Friday in Kaliningrad.

isis-killer-beheading-video-story-top James Corden gets teary singing with Paul McCartney on Carpool Karaoke
Jun 22, 2018 - 19:59
Setting up hidden cameras around the bar, Corden gave the regular pub-goers a surprise they'd never forget. Then the two motorists launched into the song.

isis-killer-beheading-video-story-top Prince Louis is set to make his second public appearance
Jun 22, 2018 - 19:39
It's set to take place on Monday, July 9, according to a statement from the Duke and Duchess of Cambridge released via the palace. Certain parts of their eight-layer confection were reserved for the christenings of their children, an age-old royal tradition.

isis-killer-beheading-video-story-top New Zealand prime minister gives birth to baby girl
Jun 22, 2018 - 19:29
The 37-year-old will take six weeks of maternity leave , and has now passed on her duties to Deputy Prime Minister Winston Peters. New Zealand has long had a progressive reputation and was the first country to give women the right to vote in 1893.

isis-killer-beheading-video-story-top Maurizio Sarri Tells Chelsea To Chase Gonzalo Higuain
Jun 22, 2018 - 16:09
It now remains to be seen if Sarri is able to convince the Chelsea board to sign Mertens and kick-start their transfer spending for the summer.

isis-killer-beheading-video-story-top President approves Governor’s rule in Jammu and Kashmir with immediate effect
Jun 22, 2018 - 11:13
In several areas of Kashmir, including Srinagar , Kupwara and Pahalgam, people burst firecrackers after the news broke out. The only alternative was governor's rule because there will be a single line administration", he said.

isis-killer-beheading-video-story-top Israeli PM Netanyahu's Wife Reportedly Charged With Fraud For Gourmet Dining
Jun 21, 2018 - 22:58
The exorbitant spending on lavish meals took place despite the fact that the Netanyahus had a full-time chef at their disposal. The indictment says Sara Netanyahu falsely claimed there were no cooks on staff when the meals were ordered.

North Korea returns remains of 200 US troops
Jun 21, 2018 - 22:55
In return Trump ordered the suspension of military exercises with South Korea, a longstanding demand of the Pyongyang regime. Pompeo has said he expects to return to North Korea soon to settle on details of the US deal with Pyongyang.

isis-killer-beheading-video-story-top Injured Neymar leaves Brazil's practice early with ankle pain
Jun 21, 2018 - 22:45
Both teams go into the match off impressive performances despite Serbia having three points and Switzerland just one. Pick up the Kit of Champions at the City Store ! If Neymar struggles again against Costa Rica in St.

isis-killer-beheading-video-story-top A Baseball Fan Was Injured By a Flying Hot Dog
Jun 21, 2018 - 22:25
The Phillie Phanatic has been launching hot dogs into the stands at baseball games for many years. The hot dogs were wrapped in duct tape, so that they wouldn't fall apart mid air.

isis-killer-beheading-video-story-top Lionel Messi light years ahead of Diego Maradona, says Sergio Ramos
Jun 21, 2018 - 22:12
That's nothing 31-year-old Messi hasn't dealt with before, but according to his mother, it may mean more this time around. Luckily, people love him a lot and they transmit that to him and he values this a lot. "As a mother, I do, too".

Instagram launches IGTV, a standalone app for long-form videos
Jun 21, 2018 - 20:40
Facebook , the company, wants to keep giving people reasons to use its properties while finding more ways to serve advertisers. The user can swipe up to explore a range of long-form videos from tabs like, "For You", "Following", and " Popular ".

isis-killer-beheading-video-story-top Google Unveils Its Podcast App For Android OS
Jun 21, 2018 - 20:14
For now, Smart Reply responses are only available in English, but other languages will be included in the feature over time. Similar to WhatsApp and Facebook Messenger , you will be able to get a preview if you receive a link from your contacts.