China on Saturday angrily hit out at the latest US tariff hikes on its goods, saying a “bullying” Washington would eventually “eat its own bitter fruit”.
China’s factory activity shrank more than expected in June, an official manufacturing survey showed, highlighting the need for more economic stimulus as US tariffs and weaker domestic demand ramped up pressure on new orders for goods.
A host of US consumer companies have warned that costs related to tariffs on goods imported from China would weigh on their results. The United States increased tariffs on $200 billion worth of Chinese goods to 25% from 10% in May.
World shares rallied on Tuesday to hold near one-month highs, with German carmakers outperforming and Wall Street looking to extend gains after the United States stepped back from imposing tariffs on Mexico.
The United States began collecting higher, 25% tariffs on many Chinese goods arriving in US seaports on Saturday morning in an intensification of the trade war between the world’s two largest economies and drawing retaliation from Beijing.
China on Saturday increased tariffs on billions worth of US goods as it prepares to unveil a blacklist of “unreliable” foreign companies that analysts say aims to punish US and foreign firms cutting off supplies to telecoms giant Huawei.
Global stock markets shed over $2 trillion in value in May as the US-China trade conflict escalated, with fears of a trade-related economic slowdown intensifying on Friday after US President Donald Trump threatened Mexico with tariffs.
The World Trade Organization (WTO) formally authorised the United States on Monday to impose tariffs on up to $7.5 billion of imports of EU goods after an arbitrator’s decision over subsidies to planemaker Airbus .
The European Union and the United States agreed on Friday to suspend tariffs imposed on billions of dollars of imports in a 16-year-old dispute over aircraft subsidies and said any solution would need to focus on China.
Stock markets reversed earlier gains on Monday after US President Donald Trump said he would restore tariffs on some imports from Brazil and Argentina, overshadowing data showing that the Chinese and eurozone economies were stabilising.