Amid Tariffs, Chinese Factory Starts Production On Trump Campaign Flags

Stocks at Risk Caterpillar

Stocks at Risk Caterpillar

White House trade officials say the current strength of the United States economy means Washington can withstand more pain than its rivals if the battle escalates further.

ASIAN ANGST The ongoing angst over U.S. President Donald Trump's trade tariffs had extended the recent slide in Asian markets overnight, in particular Chinese shares which are now deep into "bear" market territory.

Washington's targets for higher border taxes focus on industrial components like PC parts, fuel pumps, construction equipment and autos, according to trade data firm Panjiva.

Mr Gao said the USA tariffs were not so much targetting China as they were the entire global supply chain, as numerous products on the list published by the U.S. government are made by United States and worldwide companies within China.

"We are going to see in nearly all likelihood tariffs on some $34 billion of goods come down from the United States on China on Friday".

But equally likely to be affected from the fallout of a full blown trade war are the economies of a number of countries that are tightly integrated into the global value chain - which companies increasingly use to fragment production of their goods.

China rejected "threats and blackmail" ahead of a threatened US tariff hike, striking a defiant stance Thursday in a dispute companies worry could flare into a full-blown trade war and chill the global economy.

If Trump followed through on both threats, almost all of China's exports to the USA would be subject to tariffs.

According to translated quotes published by Travel and Leisure magazine, the advisory warned that "shooting, robbery, and theft are frequent" in the United States.

China's yuan rose sharply against the dollar on Wednesday, a day after the central bank assured markets it would keep the currency stable amid growing worries about trade friction, although stocks fell.

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Chinese retailers told Reuters they probably would raise prices or spurn USA imports for domestic substitutes, which could eventually hurt their businesses.

In addition to the first tranche of tariffs going into effect Friday and the second coming in weeks, Trump has continued to threaten more action against China unless the country shrinks its trade imbalance with the US.

Chinese exporters of tools, lighting and appliances say USA orders have shrunk as customers wait to see what will happen to prices.

A much larger group of US companies and traders selling American goods in China is bracing for a similar blow as the world's second-largest economy prepares to impose tariffs on another $34 billion of American imports on Friday.

In the latest sign that the risk of penalties is hitting trade, a vessel carrying US coal and heading for China was diverted on Wednesday to Singapore.

Here are the top 10 countries most at risk in the event of an all-out global trade war.

In its statement, the Fed indicated it planned to continue to gradually raise rates as it seeks to return monetary policy to a more normal state - after years of extraordinary efforts to stimulate growth - but cautioned that it was watching the trade conflict carefully.

A United States industry source said: "There is a 99 per cent chance that tariffs go into force on Friday".

China responded by threatening tariffs on $50 billion worth of U.S. exports to China, mostly aimed at agricultural goods. He said that would rise to a full 4 per cent of the global total if Washington, Beijing and other governments follow through on tariff threats.