China issued a $50 billion list of more than 100 USA goods including soybeans and aircraft targeted for a possible 25 percent tariff hike. The tariffs on US soybeans could ultimately drive up costs for Chinese pig farmers and meat prices for 1.3 billion citizens.
The US said it would put 25 percent duties on Chinese industrial, transportation and medical equipment and information technology.
It is also important to remember that the US economy is more open (i.e. less tariffs and import barriers) than the EU's and Chinese economy.
Beijing unveiled plans for painful import duties targeting politically-sensitive U.S. exports, including soybeans, aircraft and autos, to retaliate against looming United States tariffs on more than 1,000 Chinese goods worth about $50 billion.
It's a strategy that might just work.
China will struggle to replace USA soybean supplies after implementing an additional 25 percent tariff on American shipments, likely inflicting severe financial pain on domestic companies, analysts and executives at feedmakers said. Soybeans are of particular importance since they are the largest USA agricultural export to China, with just over $14 billion worth heading to China in 2016.
Q: What reasons do Washington and Beijing have for avoiding a trade war?
But the moves triggered further heavy selling in global stock markets and commodities, with US stock futures sliding 1.5 per cent, soybean futures plunging 3.7 per cent and the dollar and China's yuan both hit.
Israel cancels United Nations deal on African migrants
He added: "We do not have a contract, any understanding, formal or informal, with Israel for them to dump their refugees here". The deal put Netanyahu under fire from several conservative politicians, including some in his own Likud party.
Europe's stock markets slid on Tuesday as trade war fears and technology sector woes took their toll, while Wall Street managed small gains after a massive sell-off the previous day. That's on top of duties announced last month, meaning that some forms of those products will face a 50 percent fee to reach the US, further boosting prices for some products.
Beijing imposes tariffs on United States imports worth around $3 billion, including a 15% duty on 120 American products including fruits, nuts, wine and steel pipes and a 25% tax on eight others, like recycled aluminum and pork.
The tariffs that China and the United States threatened this week could harm both sides.
Trump has consistently attacked China for the large trade deficit between the two nations, which totaled $375.2 billion in 2017, and requested the Chinese government find a way to shrink the gap by $100 billion. China wasted no time saying it would punch back with $50 billion in tariffs on 106 products it imports from America.
"We hope that the USA side, with sense and long-term picture in mind, refrain from going further down the wrong path", the Chinese Embassy in the United States said in a statement on Wednesday.
The U.S. and Chinese governments issued competing announcements Tuesday evening, each hitting $50 billion of the other's products with tariffs. According to Adam Slater, the lead economist at Oxford Economics, the spat between the USA and China is not yet a full-on trade war, but the danger is certainly present.
GM rival Ford Motor Co F.N lost as much as 3 percent while electric carmaker Tesla TSLA.O Inc, which depends on China for 17 percent of its revenue, fell as much as 5.8 percent.