Trump's trade approach under attack as China retaliates on tariffs; markets open with big sell-off
Beijing announces retaliatory tariffs on $60 billion in U.S. goods: “China will never succumb to foreign pressure,” says Foreign Ministry spokesman.
Dow plunges more than 500 points at market open as investors price fallout of trade tensions.
In tweets Monday morning, President Trump insists his tariffs on $200 billion in Chinese imports won’t hurt American consumers, contradicting recent comments from National Economic Council Director Larry Kudlow.
President Trump’s efforts to calm investors while he launches a full-scale trade war with China showed signs of cracking Monday, as one of his top advisers admitted the approach could damage the U.S. economy, a Goldman Sachs report predicted it might lead to higher interest rates, and China vowed to impose tariffs on $60 billion in U.S. goods on June 1.
China’s response, announced by its Ministry of Finance, said it targeted “U.S. unilateralism and trade protectionism.”
The rapid-fire succession of stark economic news spooked financial markets. The Dow Jones industrial average and the Standard & Poor’s 500 index are both down sharply in morning trading. While many business executives and investors had hoped that tensions between the United States and China would be resolved easily, the recent developments show how much each country is digging in for a long fight.
https://www.washingtonpost.com/business/2019/05/13/trump-warns-china-not-retaliate-tariffs-insists-they-wont-hurt-us-consumers/?utm_term=.6740ef7c60d6&wpisrc=al_news__alert-world--alert-national&wpmk=1
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