Market News & Headlines >> U.S.-China Trade Tensions Escalate
Trade tensions between the U.S. and China escalated further on Monday night after President Trump threatened to levy a 10% import tariff on another $200 billion in Chinese products and China said it would match any such move with similar tariffs on U.S. products.
The news sent equity and commodities markets tumbling. Among U.S. commodities markets, CBOT soybean futures were hit hardest with the nearby July contract plummeting as much as 7.4% at one point before recovering partially.
In a statement, President Trump said he had asked U.S. Trade Representative Robert Lighthizer to identify the Chinese products to be subject to the new tariffs. Trump said the move was in retaliation for China's decision to raise tariffs on $50 billion in U.S. goods after he announced similar tariffs on Chinese goods on Friday.
China on Friday said it would impose additional 25% import tariffs on a list of 659 U.S. products worth $50 billion. Tariffs on 545 U.S. products with a value of $34 billion, including agricultural products such as soybeans, corn and wheat; along with beef, pork and poultry, will take effect from July 6, with the effective date for the $16 billion in remaining products yet to be determined.
The list of U.S. goods was much longer than a preliminary list of 106 goods published by China’s Commerce Ministry in April, but the total value of the products was the same.