List of new duties, the White house is expected to release on Friday
On Tuesday, the stock markets of Japan and China closed in the red due to renewed concerns about a trade war between the
Hong Kong gained almost a third of a percent, led by shares of consumer goods manufacturers. However, investors remained cautious amid escalating tensions between Beijing and Washington over trade remedy measures China.
In Europe the same reasons, plus the continued sale techsector, left no chance to the stock market indexes out Tuesday.
The reasons for yesterday’s sharp decline on the U.S. stock exchanges and today’s negative in Asia and Europe, experts estimate differently, not focusing on any one factor, be it the echo of the trade war or an unstable situation in securities of the technology sector. But it is obvious that market participants begin to understand a new reality.
“This situation can really have a negative impact on China, because steel and aluminium are bought in larger amounts from Canada, Mexico and South Korea. Therefore, the American administration tried to sidestep China and now the question is how hard will be the response from the US and that is what will determine the mood in the markets,” says Jeremy cook, chief economist at World First.
“Yes, the markets are reeling. On the one hand, threatened trade war between the US and the rest of the world, which is becoming more likely, says in turn, Oliver Roth, chief trader, Close Brothers Seydler, on the other hand, interest rates are still low, even in the US where they grew up, but are still at historically low levels. And that’s why the market is now present uncertainty”.
The trade war between Beijing and Washington now reaches a new technological level. The administration of the trump, as you know, accuses China of illegal use of American intellectual property. The white house this week plans to publish a new list of Chinese goods in respect of which will be introduced additional import duties. It is expected these duties will be imposed in respect of goods imports in the US which is about $ 50 billion a year.
According to the position of the White house, Beijing is forcing many American companies operating in China to transfer their intellectual property in the PRC. According to US trade representative Robert Lighthizer, maintaining technological advantage is a guarantor of the “future of the US economy”. And introducing the new fees, Washington is trying this is the future of the economy to provide. Beijing denied the accusations, but Express willingness to dialogue.
It is assumed that in the first place, the new duties of the White house affect the production of high-tech industries. According to Reuters, we are talking primarily about modern information technologies, robotics, aviation, shipbuilding.
Most likely, the list will get the products of enterprises engaged in the development and production of modern railway equipment, vehicles running on alternative energy sources, power generating equipment, agricultural machinery, pharmaceuticals. But experts believe that even this is unlikely to scare Beijing.
In March, the United States, Donald trump has raised import duties on steel by up to 25% and aluminum up to 10%. In response, the Chinese side decided April 2 to enter in the 128 imported from the United States of goods tariffs as countermeasures to the actions of the American side. It is curious that the American duties are not applied in Canada. There this fact was satisfied, but also warned Washington against trade wars with China.
“We recognize that the relationship between the US and China are experiencing some problems. Our approach is to in this situation is to clearly demonstrate through our policies and our actions, we see the benefits of trade relations based on rules and agreements and that the relationship between Canada and China have significant potential to improve our economy”, – said the Minister of Finance of Canada bill Morneau.
List of new duties, the White house is expected to release on Friday. New trade restrictions Washington can take effect in about two months.